Standard Chartered and NTUC Enterprise Launch Digital Bank in Singapore

Fazzaco learned that Standard Chartered's wholly owned subsidiary SCBSL and BetaPlus, a holding company controlled by NTUC Enterprise, have formed a partnership to launch a digital bank joint venture - SC Bank Solutions in Singapore.

According to the official press release, SC Bank Solutions will be focused on delivering digital banking services, in line with Singapore's efforts to digitalise its economy. It has secured a full banking licence by the MAS on 30 December 2020.

SCBSL and BetaPlus will respectively hold 60% and 40% of the issued and paid up share capital of the joint venture. In addition, they will contribute or have contributed to SC Bank Solutions, on or before completion, an aggregate cash amount of S$240 million, broken down as follows:

(i)  SCBSL: S$144 million (S$90 million of which will have been contributed prior to Completion);

(ii)  BetaPlus: S$96 million.

The above funds will be used to develop the business of SC Bank Solutions pursuant to the agreed business plan.

Currently, the completion is subject to certain conditions precedent. Whereas, BetaPlus has been granted the approval by the MAS to acquire and hold up to 40% of the issued and paid up share capital of SC Bank Solutions.

The establishment of a digital bank in Singapore is an important part of Standard Chartered's overall digital strategy. Whilst SC Bank Solutions is not expected to provide a meaningful earnings contribution in the near term, it has the potential to create value over the medium term.