Singapore Fintech Ditches Plans for Digital Bank License
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Singapore cross-border startup InstaReM has withdrawn from the contest for a digital wholesale banking license, preferring to focus on its global business-to-business payments instead. It is the first firm to declare its withdrawal.
InstaReM, which recently rebranded to Nium, has backed down from its application for a digital wholesale license because the banking landscape in the city-state looks rather crowded.
Singaporean banks are extremely well entrenched in that ecosystem. Our strengths lie elsewhere and we have decided to consolidate and focus on those areas,» said Nium’s chief executive Prajit Nanu, who was quoted in «The Business Times.»
Nanu said his company will focus on serving businesses in more than 40 markets. It holds regulatory licenses including in the European Union, Hong Kong, Indonesia, and Japan and is seeking new electronic money institution licenses for card issuing and stored value facilities in Mexico and Brazil. With $41 million raised earlier this year, it is one of the best-funded fintech startups in South-east Asia.
Backed by investors including Temasek Holdings unit Vertex Ventures and Rocket Internet, Nium previously said it was interested in the digital bank license offered. Other companies that expressed a desire to apply included SingTel, Grab and Razer.
Questions & Answers
Q.What reason did Nium give for withdrawing its application for a digital wholesale banking license?
What reason did Nium give for withdrawing its application for a digital wholesale banking license?
Nium's CEO, Prajit Nanu, stated they decided to withdraw because the banking market in Singapore is crowded, and local banks are deeply entrenched. The company prefers to consolidate and focus on its existing strengths in other areas.
Q.What is Nium's primary business focus following the withdrawal of its digital banking license application?
What is Nium's primary business focus following the withdrawal of its digital banking license application?
Nium will concentrate on its global business-to-business payments services. The company plans to serve businesses in over 40 markets, using its existing regulatory licenses in multiple regions, including the EU and Japan.
Q.Which other companies had also shown interest in applying for a digital bank license in Singapore?
Which other companies had also shown interest in applying for a digital bank license in Singapore?
Other companies that had expressed interest in applying for a digital bank license in Singapore included SingTel, Grab, and Razer. Nium's withdrawal makes it the first firm to declare it is no longer pursuing the license.
Q.Where does Nium currently hold regulatory licenses, and which new licenses is it seeking?
Where does Nium currently hold regulatory licenses, and which new licenses is it seeking?
Nium currently holds regulatory licenses in regions including the European Union, Hong Kong, Indonesia, and Japan. It is actively seeking new electronic money institution licenses for card issuing and stored value facilities in Mexico and Brazil.