Covid-19 widens field for new digital banks as inclusion gap narrows

MAS sticks to plans of up to five digital banks in Singapore; keeps path to profitability timeline intact

Published Mon, Nov 30, 2020 · 09:50 PM

SFFxSWITCH2020

Singapore

THE Monetary Authority of Singapore (MAS) is sticking to its planned number of digital bank licences that it will issue, with the regulator "impressed" by the quality of applications that have been reviewed, said its top official.

It has also not dramatically changed the timeline for new digital banks - up to five will be awarded licences by MAS by year-end - to establish a path to profitability on a five-year financial projection.

Speaking to The Business Times in a wide-ranging interview ahead of the SFFxSWITCH event this year, MAS managing director Ravi Menon said with the pandemic, digital banks will enter the market with the benefit of digital adoption having accelerated here.

"The digital banks are entering the scene with a lot more Singaporeans now comfortable to operate on digital channels. In that sense, I think the landscape is more conducive for them because we are more digitally ready," said Mr Men…