Singapore's MAS approves 4 applications of digital bank license

Monetary Authority of Singapore (MAS) has awarded four digital bank licences to Ant Group, Grab Holdings, Sea Limited and Greenland Consortium, with expectations that for each to commence operations from early 2022.

According to the official announcement, a total of 14 applicants were evaluated on the basis of the value proposition of the business model, management abilities, growth prospects, and potential contributions to the financial system of Singapore. In addition to these criteria, MAS said its assessment was done with consideration for applicants' reviews of the business plans and assumptions underpinning their financial projections arising from the impact of the Covid-19 pandemic.

The latest step is an important development towards liberalization of the financial industry in the city-state. The digital bank license will enable the mentioned companies to provide all banking services online instead of having a physical presence in the region.

The authority noted that the successful applicants must meet all relevant prudential requirements and licensing pre-conditions before MAS grants them their respective banking licences. 

"MAS applied a rigorous, merit-based process to select a strong slate of digital banks," said MAS Managing Director Ravi Menon. "We expect them to thrive alongside the incumbent banks and raise the industry's bar in delivering quality financial services, particularly for currently underserved businesses and individuals."