OCBC looking at partners for virtual banking licence
(21 August 2019 – Singapore) OCBC is reportedly in talks with companies, including Singtel, about seeking one of the city-state’s planned virtual bank licences.
According to Bloomberg, Singapore’s second-largest bank would take a minority stake in any virtual-banking joint venture as a way to tap new customers and markets, sources said. Companies such as Singtel for example might have clients for its phone services that don't bank with OCBC, opening up a new segment for the bank.
Banks worldwide face increasing competition from telcos and technology firms that are getting into financial services including payments and lending. Rather than compete, a number of banks are partnering with new entrants, including in Hong Kong where Standard Chartered tied up with PCCW Ltd earlier this year to create a virtual bank.
OCBC's discussions are preliminary ahead of more details on the conditions for the new licence applications which the MAS is expected to issue later this month, the people said. The eventual choice of partners may change depending on licencing conditions.
"We are open to forging new partnerships and ventures that allow us to serve new segments and new markets," OCBC's head of digital and innovation Pranav Seth said in an emailed reply to questions from Bloomberg, while declining to comment on any talks on a virtual licence application.
Subscribe