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Singtel and Grab to Create Fully Digital Bank in Singapore

Singtel and Grab to Create Fully Digital Bank in Singapore
Reuters/Edgar Su/CNA/Jeremy Long | Collage of Grab and Singtel logos.

Singapore Telecommunications Ltd (Singtel) is partnering with Southeast Asian ride-hailing firm Grab Holdings Inc to apply for a digital full banking licence in Singapore, the two companies said on Monday. 

The pair in a joint statement said they will establish a consortium with Grab owning 60% and Singtel holding the remainder, with the aim of offering a variety of digital banking services. 

 A Singtel booth is pictured at the Money 20/20 Asia Fintech Trade Show in Singapore March 21, 2019. Image: REUTERS/Anshuman Daga
A Singtel booth is pictured at the Money 20/20 Asia Fintech Trade Show in Singapore March 21, 2019. Image: REUTERS/Anshuman Daga

 

The move comes as Singapore’s biggest liberalisation of its banking sector in two decades seeks to enable online-only banks that can operate at lower costs and therefore offer different services than those of traditional lenders such as DBS Group Holdings Ltd and Oversea-Chinese Banking Corp Ltd.

Singtel, the region’s largest telecom operator, and Grab are among the best-known names in Southeast Asia and both have been expanding outside their traditional businesses. 

Singtel has been pushing into areas such as mobile wallets and online gaming, while Grab has expanded into food delivery and a range of financial services. 

Grabpay. Image: Vulcanpst.com / Melissa Chan
Grabpay. Image: Vulcanpst.com / Melissa Chan

 

“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,” Reuben Lai, senior managing director at Grab Financial Group, said in a statement. 

The city-state’s central bank is set to issue up to two digital full bank and three wholesale bank licences. Digital full banks can accept deposits from and offer services to both retail and non-retail customers but must be led by a Singapore-based company. 

Wholesale banks will mostly serve small and mid-sized enterprises.

 


Source : Reuters | Channel News Asia

Indah Gilang Pusparani

Indah is a researcher at Badan Perencanaan Pembangunan Penelitian dan Pengembangan Daerah Kota Cirebon (Regional Development Planning and Research Agency of Cirebon Municipality). She covers More international relations, tourism, and startups in Southeast Asia region and beyond. Indah graduated from MSc Development Administration and Planning from University College London, United Kingdom in 2015. She finished bachelor degree from International Relations from University of Indonesia in 2014, with two exchange programs in Political Science at National University of Singapore and New Media in Journalism at Ball State University, USA. She was awarded Diplomacy Award at Harvard World Model United Nations and named as Indonesian Gifted Researcher by Australian National University. She is Researcher at Regional Planning Board in Cirebon, West Java. She previously worked as Editor in Bening Communication, the Commonwealth Parliament Association UK, and diplomacy consulting firm Best Delegate LLC in USA. Less
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