Singapore’s digital banks not the game changer they promise to be

DIGITAL banks appeared poised to shake Singapore’s financial scene up in 2022. But their entry has turned out to be underwhelming, with limited utility for the average consumer.

The Monetary Authority of Singapore (MAS) had in 2020 given out four digital bank licences to add diversity to and strengthen Singapore’s banking system. The new players would have “innovative business models” and cater to underserved segments, MAS had said in its initial announcement in 2019.

A consortium comprising on-demand services provider Grab and telco Singtel was awarded one digital full bank licence, while another was awarded to a unit of gaming and e-commerce group Sea.