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Fri, Dec 04, 2020 – 6:57 pm
The ANT Group unit and a consortium consisting of Greenland Financial Holdings Group, Linklogis Hong Kong Ltd and Beijing Co-operative Equity Investment Fund Management, have been selected to receive Digital Wholesale Bank (DWB) licenses in Singapore.
With this, the Monetary Authority of Singapore (MAS) has chosen to select only two of the three licenses that it could have granted to applicants.
The regulator said the two selected applicants met MAS’s expectations and were evaluated as “demonstrably stronger” on all criteria, despite the overall high quality of eligible applicants.
“As DWBs are introduced as a pilot, MAS will review whether to grant more such licenses in the future.”
Successful applicants must meet all relevant prudential requirements and preconditions for licensing before MAS grants them their respective banking licenses, the regulator said.
MAS expects the new digital banks to start operating in early 2022.
MAS had previously announced that it would grant banking licenses for up to two DFBs and up to three DWBs. There were a total of 14 eligible applications. Applications were evaluated according to the following criteria:
- value proposition of the business model, which incorporates the innovative use of technology to meet customer needs and reach underserved segments;
- ability to manage a prudent and sustainable digital banking business;
- growth prospects and other contributions to Singapore’s financial center
MAS said the evaluation was conducted on a “holistic basis”, taking into account all relevant considerations for each criterion.
MAS also considered eligible applicants’ reviews of business plans and the assumptions that support their financial projections derived from the impact of the Covid-19 pandemic.
In a statement, Ravi Menon, MAS Managing Director, said: “MAS applied a rigorous and merit-based process to select a robust roster of digital banks. We hope they will prosper alongside established banks and raise the bar of the industry in on quality financial services, particularly for currently underserved businesses and individuals. They will further strengthen Singapore’s financial sector for the digital economy of the future. “
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