Hong Kong's AMTD may throw hat into Singapore digital banking ring

Singapore

HONG KONG'S AMTD Group is eyeing a digital banking licence in Singapore, following its digital banking march in its home market, a senior executive told The Business Times (BT).

With this, AMTD joins its peers in Hong Kong's digital banking space - namely Ping An Insurance's OneConnect and Standard Chartered Bank (StanChart) - that are also circling digital banking opportunities in Singapore.

"We are very interested in Singapore," AMTD chief executive Calvin Choi said in a phone interview, adding that Singapore serves as a regional gateway to the other Asian markets. "We see this digital bank licence as a great opportunity to serve more Asian customers."

Headquartered in Hong Kong, AMTD is a financial services firm with coverage across Asia. Its core business lines include investment banking, asset management, insurance brokerage and tech investments.

Earlier in May, the firm tied up with Chinese electronics giant Xiaomi to secure a virtual banking licence in Hong Kong.

The combined entity, Insight Fintech, will focus on integrating artificial intelligence, Big Data, cloud computing and blockchain into traditional banking services in its initial phase of operations. BT understands that the virtual bank in Hong Kong is expected to launch by early 2020.

Mr Choi said: "If we have a digital bank in Singapore, we can join the dots, connect both banks to offer a more comprehensive suite of financial services to the rest of Asia. We are fully committed to exploring our opportunities here... and finding partners to apply for the licence."

Earlier in August, BT reported that Ping An's fintech arm OneConnect is among about a dozen of interested applicants that may look to snag a digital bank licence in Singapore.

The Monetary Authority of Singapore will issue up to two digital full bank licences and up to three digital wholesale bank licences.

A digital full bank would have to be headquartered in Singapore, and is able to take retail deposits.

A digital wholesale bank is open to both Singaporean and foreign players, but it can only take deposits from small and medium-sized enterprises (SMEs) and other non-retail segments.

StanChart also in September told BT it has its eye on a digital bank licence and is in talks with potential partners.

The bank is exploring opportunities in both retail and SME banking, said Judy Hsu, its regional chief executive for Asean and South Asia, told reporters at a media briefing. "Our market share here is sizeable, the upside is much more than the downside."

StanChart is no stranger to the digital banking game, having secured licences in Hong Kong and Taiwan this year. It joined hands with several non-bank players in Hong Kong and is part of a consortium in Taiwan.

AMTD recently made its mark on Singapore's property scene with the purchase of Oakwood Premier OUE Singapore, a luxury serviced residences and hotel business, in September. The S$289 million deal was closed via a joint venture with Dorsett Hospitality International.

"We are expanding our property arm in Singapore," said Mr Choi. "AMTD is more than just a financial services firm, we're moving towards becoming a conglomerate."

Other likely non-bank applicants for the digital bank licence include Singtel, Grab and peer-to-peer lending platform Validus Capital.

Applications for the digital banking licences in Singapore close at the end of the year.

Additional reporting by Leila Lai