Singapore Digital Bank Licenses

In 2020, Singapore’s central bank, the Monetary Authority of Singapore (MAS), announced the award of two digital full bank (DFB) licenses to a Grab-Singtel consortium and technology giant Sea. Like traditional banks, the two DFBs will provide retail customers with services such as opening accounts, deposits as well as issuing debit and credit cards.  

However, they will not have a physical presence and all banking services will be done online. In addition, MAS issued two digital wholesale bank (DWB) licenses to China’s Ant Group and to a consortium comprising Greenland Financial Holdings, Linklogis Hong Kong and Beijing Co-operative Equity Investment Fund Management. The two DWBs will serve corporates and small and medium-sized enterprises.  The four new digital banks beat 10 other contenders and are expected to start business in 2022.  

MAS had previously announced that it would award banking licenses for up to two DFBs and up to three DWBs.  It received a total of 14 eligible applications but decided to award banking licenses to only two DWBs. As the DWBs are being introduced as a pilot, MAS will review whether to grant more of these licenses in the future. The digital banks are expected to thrive alongside the incumbent banks and raise the industry’s bar in delivering quality financial services, particularly for currently underserved businesses and individuals. MAS believes the digital banks will further strengthen Singapore’s financial sector for the digital economy of the future.  

In 2019, MAS announced the digital bank framework, which aims to enable non-bank players with strong value propositions and innovative digital business models to offer digital banking services.

There are excellent opportunities for U.S. ICT vendors to supply their technologies and solutions to the four digital banks in Singapore.

Useful links
Monetary Authority of Singapore

MAS announces successful applicants of licenses to operate new digital banks in Singapore