Ron Sim's V3 Group mulls Singapore digibank bid with Far East Organization, Temasek's Heliconia and EZ-Link

Ron Sim's V3 Group is said to be in talks with property group Far East Organization, stored-value card operator EZ-Link, and Temasek-owned Heliconia Capital to form a consortium to gun for a digital bank licence in Singapore.

The Business Times understands that the partners are targeting one of the two digital full-bank licences in Singapore that will allow it to accept deposits from retail customers.

Market talk is that the final line-up of the consortium is not finalised and that there might be new players joining the fray.

Applications for the five digital banking licences - two for retail banking and three in wholesale banking - close on December 31.

Between the four names, they account for millions of touchpoints in Singapore, on the back of EZ-Link's position as the dominant public transit card here as well as the strong small and medium-sized enterprise (SME) representation by the other three players.

The SME segment has often been described as a key under-served segment that the upcoming digital banks will be targeting. These smaller enterprises, especially micro-enterprises and startups, tend to face more difficulty managing their finances and securing funding from traditional banks.

Temasek's Heliconia invests in "growth-oriented" SMEs in the region, with big names such as hardware gaming firm Razer Inc and mixed martial arts company One Championship. Meanwhile, Far East Organization is a landlord to many SMEs across its properties, while V3 Group is known for housing various notable SME lifestyle brands such as Osim and TWG Teas.

In line with this development, V3 Group announced on Thursday that it is setting up a fintech unit in October to pursue financial innovation opportunities in the region as well as develop digital financial services, focusing on the SME segment.

V3 Fintech will identify and address gaps in the financial services sector, particularly those that affect SMEs and their workforce. It will also harness technology and data to work with businesses, families and individuals to enhance their financial well-being and improve financial inclusion across communities in the region.

Mr Sim said: "As a business builder and employer, I understand the challenges faced by many SMEs and their workforce. With more innovative digital financial services made available to these drivers of our economy, they will be able to continue to strengthen their operations and improve stability."