SINGAPORE: The Monetary Authority of Singapore (MAS) will issue up to five new digital bank licences, which will be extended to non-bank players, it was announced on Friday (Jun 28).
This is in addition to any digital banks established by Singapore banking groups under the existing internet banking framework that was introduced in 2000.
AdvertisementAdvertisement“The new digital bank licences mark the next chapter in Singapore’s banking liberalisation journey,” Mr Tharman Shanmugaratnam, Senior Minister and Chairman of the Monetary Authority of Singapore (MAS) said at the 46th Annual Dinner of The Association of Banks in Singapore.
“They will ensure that Singapore’s banking sector continues to be resilient, competitive and vibrant," he added.
The new licences will comprise up to two digital full bank licences, which will allow licensees to provide a wide range of financial services and take deposits from retail customers, as well as up to three digital wholesale bank licences, which will allow licensees “to serve SMEs (small and medium-sized enterprises) and other non-retail segments”, MAS said in a media release.
Digital full bank licences are open to companies headquartered in Singapore and controlled by Singaporeans, MAS added.
AdvertisementAdvertisementForeign companies who wish to apply must form a joint venture with a Singapore company, it added. The joint venture must meet the headquarter and control requirements.
Digital wholesale bank licences are open to all companies, the authority said.
Applications are expected to open in August, and more details on eligibility and admission criteria will be provided later.
“The entry of new digital players will add diversity and strengthen Singapore’s banking system in the digital economy future,” MAS said.
“With innovative business models and strong digital capabilities, these players can cater to under-served segments of the market. They will provide impetus for existing banks to continue enhancing the quality of their digital offerings.”
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