Digital bank applicants to update MAS on Covid-19's business impact from June

THE 21 digital bank applicants in Singapore will update the Monetary Authority of Singapore (MAS) from this month on how their business and finances have been impacted by the global pandemic, The Business Times (BT) understands.

With the Covid-19 outbreak drastically impacting business prospects across all sectors, the applicants must show that they can offer a sustainable way to expand beyond their current lines of business into the banking sector - the key criterion of the digital bank having a "path towards profitability" based on a five-year financial projection, for example, remains.

While companies in other global markets have tried to showcase what is now known as "Ebitdac" - earnings before interest, tax, depreciation, amortisation and coronavirus - to demonstrate how income and finances would have been without the impact from the virus, it is understood that MAS still emphasises financial strength as a priority when assessing these digital bank aspirants.