We have previously shared about how Singapore will be moving towards starting of digital banks and this is on it’s way to becoming a reality very soon.
Applications for a digital bank license has opened during the last week of August right through till the end of the year. The regulator opened up applications for no more than two licences for a digital full bank, and up to three licences for a digital wholesale bank.
The 2 digital full-fledged banks will be able to provide a wide range of financial services and take deposits from retail and non-retail customers.
They will commence with a minimum paid-up capital of S$15 million and subjected to an aggregate deposit cap of S$50 million, with deposits per individual capped at S$75,000.
The remaining three can become digital wholesale banks, serving small and medium enterprises and other non-retail segments. They are not allowed to take deposits from retail customers except for fixed deposits of at least S$250,000.
These wholesale banks must have a minimum paid-up capital of S$100 million and can be owned by foreign companies as long as they are locally incorporated.
The entry of new players could lead to the biggest shake-up in two decades in a market dominated by local banks DBS Group, Oversea-Chinese Banking Corp and United Overseas Bank.
Many of NPN’s partners have expressed interest in the digital bank license and NPN is eager to see how things will roll out for them.
Grab, which has investors such as SoftBank Group Corp and Uber, and Singtel have expressed interest for the licences.
Gaming company Razer said in June that it will “definitely consider” applying for the digital bank licence.
FOMO Pay has also said that it is evaluating the criteria to qualify as an applicant.