<article><p>The run-up to the Monetary Authority of Singapore&#8217;s (MAS) 31 December deadline for digital bank licence applications saw a flurry of submissions and last-minute pull-outs.</p></article>

<p>The run-up to the Monetary Authority of Singapore&#8217;s (MAS) 31 December deadline for digital bank licence applications saw a flurry of submissions and last-minute pull-outs.</p>
<h3><strong>Razer applies for digital full bank licence</strong></h3>
<p>Hong Kong-listed gaming hardware maker Razer has submitted its bid for one of the two digital full bank licences to be issued by MAS in mid-2020. The submission was made by its fintech arm Razer Fintech to form Razer Youth Bank, which it said will cater to underserved youth and millennials.</p>
<p>According to a statement, Razer Youth Bank will be 60 per cent owned by Razer Fintech, with the remaining backed by a consortium of partners including Sheng Siong Holdings, FWD, Linksure Global, Insignia Ventures Partners and Carro.</p>
<p style="font-weight: 400;">“As a truly Singapore homegrown and global tech unicorn, we hope to be able to contribute to the growth of Singapore as a global financial centre to deliver a new-age and clearly differentiated digital banking proposition for Singaporeans and youth and millennials globally,” said Lee Li Meng, Chief Strategy Officer of Razer Inc. and CEO of Razer Fintech.</p>
<p>Razer Fintech currently operates two other verticals &#8211; digital wallet Razer Pay and a merchant division, Razer Merchant Services.</p>
<h3><strong>Grab-Singtel apply for full digital bank licence</strong></h3>
<p>Grab and Singtel have also applied for a full digital bank licence in Singapore. The two parties are forming a consortium, with Grab holding a 60 per cent stake and Singtel holding the remaining 40 per cent.</p>
<p>According to a statement, the duo aims to cater to the needs of digital-first consumers who expect greater convenience of personalisation. The lack of SME credit access is also a pain point that it hopes to address. Both regional powerhouses already have a range of financial services on hand, including Dash, VIA, GrabPay and GrabInsure.</p>
<p>“The core of Grab’s mission has always been to solve everyday challenges and unlock economic potential in Southeast Asia&#8230;The natural next step is to build a truly customer-centric digital bank that will deliver a variety of banking and financial services that are accessible, transparent and affordable,&#8221; said Reuben Lai, Senior Managing Director, Grab Financial Group.</p>
<p>Securing a digital bank licence also pushes Grab closer to its super app ambitions as it seeks to be a regional fintech player in Southeast Asia. The Singapore-based ride-hailing decacorn was last reported to be mulling spinning off Grab Financial to raise capital for it separately.</p>
<p>Today, Grab also offers food, package delivery services, as well as digital payments and financial services in 339 cities across 8 countries.</p>
<h3>Ant Financial, ByteDance too in the race</h3>
<p>Ant Financial submitted an application for a wholesale digital banking licence to the Singapore central bank, Bloomberg <a href="https://www.bloomberg.com/news/articles/2020-01-02/ant-financial-applies-for-singapore-digital-banking-license"><strong>reported</strong></a> on Thursday. The licence will allow it to cater to corporate clients in the city-state.</p>
<p>China&#8217;s ByteDance Technology, which operates video-sharing app TikTok, is also said to have applied for a wholesale digital banking licence in Singapore, Business Times reported.</p>
<p>Singapore is offering two licences for full digital banks and contenders include Grab-Singtel and the Razer-led consortium. Full digital banks will be able to cater to all kinds of consumers. MAS requires them to be locally owned and meet the minimum paid-up capital of S$1.5 billion within three to five years&#8217; time from commencement of business.</p>
<p>There are three other wholesale digital bank licences on offer, which Ant Financial has expressed interest in. Foreign firms can hold a majority stake in these digital banks and the paid-up capital requirement is significantly lower at S$100 million.</p>
<h3 style="font-weight: 400;"><strong>Validus, OCBC, Keppel bow out</strong></h3>
<p>Others, meanwhile, opted to bow out of the race.</p>
<p>According to a <a href="https://www.businesstimes.com.sg/companies-markets/ocbc-keppel-validus-tie-up-closes-door-on-digital-bank-bid"><strong>Business Times report</strong></a>, Validus Capital, OCBC Bank and Keppel Corp have pulled out of the race. The report added that Keppel is in the midst of a strategic review of its core operations, which hampered the talks.</p>
<p>The trio was seeking to bring together their expertise in financial services, logistics and shipping sectors. OCBC Bank is a regional bank based in Singapore that has typically been strong in SME lending, Keppel is an SGX-listed entity operating in offshore and marine, property, infrastructure and asset management, while Validus Capital is a Vertex Ventures-backed peer-to-peer platform offering finance solutions to SMEs.</p>


Hong Kong-listed gaming hardware maker Razer has submitted an application for one of the two digital full bank licences to be issued by MAS in mid-2020.

Grab-Singtel, Razer remain in digital bank race, Validus-OCBC-Keppel out

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Grab-Singtel, Razer remain in digital bank race, Validus-OCBC-Keppel out

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