Singapore Looks to Jumpstart Digital Banking Market with Licenses

The Monetary Authority of Singapore announced they will issue five digital banking licenses in June and the winning bids will start operating in early 2021; applications have already been received by Singapore gaming company Razer, ride-hailing app Grab, Xiaomi and Ant Financial; “As in other markets we don’t expect the entrance of new players to result in a ‘Big Bang’ but rather a general improvement in service availability, customer experience and pricing,” James Lloyd, Asia-Pacific Fintech and Payments Leader for Ernst & Young, said to the FT. “More than anything else this initiative reflects the Singapore government’s desire to keep pace with innovation and fintech developments elsewhere.”; unlike some of the other markets in the region Singapore has created different licenses for different types of banking activities; overall impact of new entrants on incumbents is expected to be minimal as most of the established banks in the country are digitally savvy. Financial Times

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