Singapore-based Arival Bank has applied for a full digital banking licence in the country. The Monetary Authority of Singapore (MAS) is set to issue three operational licences to neobanks to improve financial lending to small and medium-sized enterprises (SMEs) in the country.
Besides applying for a digital banking licence in Singapore, Arival Bank is also in the process of applying for a full-service virtual banking licence in Lithuania. We may also see Arival Bank establish itself in regions like Malaysia, the UK, Australia, UAE, Hong Kong and Taiwan in the near future.
In Singapore, Arival Bank plans to provide financial solutions to local cryptocurrency and blockchain-based firms, freelance writers, bloggers, streamers and influencers.
Jeremy Berger, co-founder and COO at Arival, told the media, “Our initial customer focus is tech startups. That is the world where we most resonate. Within two years, we will be a leading financial provider for these firms, their go-to digital bank.”
Jeremy Berger also highlighted the importance of Singapore and said that Singapore is a startup paradise, with a lot of foreign-run fintechs, a supportive ecosystem and real fintech talent. It’s full of ambitious digital firms looking for innovative digital financial services.”
The Monetary Authority of Singapore revealed that it has received 21 bids so far. Some of the biggest names that have applied for a digital banking licence in Singapore are Ant Financial, TikTok, Singtel, Xiaomi, Singapore-based internet operators Sea and Razer.
According to the Monetary Authority of Singapore (MAS), each licensee must have a minimum paid-up capital of S$100 million. They will be able to serve SMEs in Singapore and accept fix deposits up to S$250,000 from individuals.