The Monetary Authority of Singapore (MAS) announced in mid-2019 that it would issue up to 2 digital full bank (DFB) licences and 3 digital wholesale bank (DWB) licences. These licences will allow entities to conduct digital banking business in Singapore. DFB licence holders will be allowed to take on retail deposits, while DWB licence holders will focus on serving SMEs and other non-retail segments. Applicants to the licence were given until 31 December 2019 to submit their application.
MAS received 21 applications for the digital banking licences; 7 applications for the DFB licences and 14 for the DWB licences. The applicants are a diverse group of entities made up of e-commerce firms, technology and telecommunications companies, financial technology providers, financial institutions and others. Most of the applicants formed consortiums to enhance their value propositions.
MAS will evaluate the value proposition of each applicant, including the applicant’s innovative use of technology, the ability to manage a prudent and sustainable digital banking business, and its contribution to the financial centre of Singapore. Successful applicants will be announced in June 2020 and are expected to commence business by mid-2021.
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Disclaimer: This article is for general information only and does not constitute legal advice.
