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Bloomberg
Singapore has received “strong interest†in its effort to open up the banking industry to fresh competition after 21 groups made bids for digital licenses, the financial regulator said.
A “diverse group†lodged applications, including e-commerce, technology and tele
communications companies, the Monetary Authority of Singapore (MAS) said on Tuesday, without identifying the parties. Seven were for digital full-bank licenses, and 14 were for wholesale permits, it said.
Some bidders see the city-state as a gateway to the rest of Southeast Asia, where the digital lending market is expected to quadruple over the next five years. Neighbouring Malaysia said last month it’s working on a framework for virtual banks.
Firms including Jack Ma’s Ant Financial, Grab Holdings Inc. and Razer Inc are among companies that have registered their interest with the MAS, which plans to announce winners in June. The successful groups are expected to start business by mid-2021, going up against established local and global names including DBS Group Holdings Ltd and Citigroup Inc.
The MAS said in last June it plans to issue as many as five new digital bank licenses to non-banks to strengthen competition. The UK and Hong Kong are among major economies that have already issued similar permits, creating a new generation of rivals for traditional lenders.
The number of interested parties is high given the limited availability of the Singapore permits, said Varun Mittal, an associate partner with the consultancy firm EY in Singapore.