Two-Thirds of Digital Banks Progressing To Next Stage in Singapore
(17 June 2020 – Singapore) The Monetary Authority of Singapore (MAS) has announced in a statement that 14 out of the 21 digital bank applications will progress to the next stage of assessment, after delaying the assessment due to the COVID-19 pandemic.
This includes five digital full bank applicants and nine digital wholesale bank applicants. Some of the applicants shortlisted for the next round of the selection process for digital full bank licences include Grab's and Singtel's joint venture, solo applicant Sea Ltd, the MatchMove-Singapura Finance consortium and Beyond.
Meanwhile, mainboard-listed fintech platform iFAST Corp and Sheng Ye Capital-led consortium, among others made the shortlist for digital wholesale banks. In the next stage, applicants will be asked to present their proposals via virtual meetings and the next shortlist will be based on three factors: “value proposition and business model, incorporating the innovative use of technology; ability to manage a prudent and sustainable digital banking business; and growth prospects and other contributions to Singapore’s financial centre.”
In light of the pandemic, MAS is also asking all eligible applicants to “review the business plans and assumptions underpinning their financial projections, including sources of funding, and provide an independent review of these assumptions”. MAS does not expect this request to affect the timeline for the award of the digital bank licences by the end of 2020.
Subscribe