MAS delays digital bank licence results to H2 2020

SINGAPORE'S digital banking contenders will need to wait a bit longer to know whether they are successful in their applications.

The Monetary Authority of Singapore (MAS) announced on Thursday that successful applicants will be informed in the second half of 2020 instead of June 2020 as originally intended, as the ongoing virus outbreak throws a spanner in the works.

MAS said that the extension of the assessment period for the award of digital bank licences is to allow applicants to dedicate their resources and attention towards managing the immediate impact of the Covid-19 pandemic on their businesses.

In a statement, MAS said that this will enable it to focus resources on ensuring monetary and financial stability, and ensuring that financial institutions remain resilient, and able to perform their role in supporting businesses and individuals through this challenging time.

In January 2020, MAS said that it had received 21 applications for the five digital bank licences up for grabs. They comprise of up to two digital full bank licences and three digital wholesale bank licences, aimed at enabling non-bank players with strong value propositions and innovative digital business models to offer banking services.

Digital full banks will be allowed to take retail deposits, and will require an eventual capital requirement of S$1.5 billion. They also need to be Singapore-headquartered and controlled by Singaporeans.

A NEWSLETTER FOR YOU

Friday, 8.30 am

SGSME

Get updates on Singapore's SME community, along with profiles, news and tips.

Sign Up

The digital wholesale bank licence will allow successful applicants to serve small and medium-sized enterprises and other non-retail segments. There is a capital requirement of S$100 million, and foreign entities can take a majority stake.

Applicants that have gone public include a Grab-Singtel partnership, a consortium led by Razer, as well as a solo bid by consumer Internet firm Sea.