Chinese Firms Vie for Singapore Digital Bank Licenses
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Several Chinese fintech firms have submitted a bid to the Monetary Authority of Singapore to operate a digital bank in the city-state.
By the application deadline on Tuesday, Chinese firms that submitted bids for a digital banking license in Singapore included Bytedance, which operates viral video sharing application TikTok, Yillion Group and Hande Group, which applied as part of a consortium with Singapore wealth management fintech platform iFast Corporation, and the country’s largest online financial platform Ant Financial.
All three are applying for a digital wholesale bank license, according to several media reports this week. There are up to five licenses on offer – two for full digital banks, and three for digital wholesale banks, in which foreign firms can hold majority stakes and the capital commitment is S$100 million.
We look forward to contributing to the development of the digital banking landscape in Singapore, Ant said, citing an emailed statement.
For iFast, a license in Singapore would allow it to «bring solutions to the small and medium-sized enterprises (SME) market that has been underserved by bank,» CEO and chairman Lim Chung Chun told «The Business Times» reported on Thursday.
Other firms that have entered the fray include a consortium led by Singapore gaming firm Razer and Grab, which submitted a joint bid with Singtel.
Questions & Answers
Q.Which Chinese firms have applied for a digital bank license in Singapore?
Which Chinese firms have applied for a digital bank license in Singapore?
Bytedance, Yillion Group, Hande Group, and Ant Financial are the Chinese firms that have submitted bids. Yillion Group and Hande Group applied as part of a consortium with iFast Corporation.
Q.What type of digital bank license are the Chinese firms seeking?
What type of digital bank license are the Chinese firms seeking?
All the mentioned Chinese firms are applying for a digital wholesale bank license. This allows foreign firms to hold majority stakes and requires a capital commitment of S$100 million.
Q.How many digital bank licenses are available in total?
How many digital bank licenses are available in total?
There are up to five digital bank licenses on offer from the Monetary Authority of Singapore. These comprise two full digital bank licenses and three digital wholesale bank licenses.
Q.Why does iFast Corporation want a digital bank license in Singapore?
Why does iFast Corporation want a digital bank license in Singapore?
iFast believes a license would enable them to provide solutions to the small and medium-sized enterprise market. Their CEO stated this sector has been underserved by existing banks.
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