The Monetary Authority of Singapore (MAS) has announced that it has shortlisted 14 applicants out of 21 for granting digital banking licence in the country, the media reported.
The 14 applicants shortlisted comprises five digital full bank applicants and nine digital wholesale bank applicants.
Reportedly, the selected applicants will be invited to present their proposals through virtual meetings, where they will be further screened.
They will further be narrowed down again on the basis of their value proposition and business model, incorporating the innovative use of technology, ability to manage a prudent and sustainable digital banking business as well as growth prospects.
The Monetary Authority of Singapore is expected to award two digital full bank licences and three digital wholesale bank licences by the end of this year.
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.
The central bank has also asked the applicants to take into account the impact of the Covid-19 and review the business plans and assumptions underpinning their financial projections.
In a statement, it said, “MAS does not expect the request for updated business plans and financial projections to affect the timeline for award of the digital bank licences by the end of this year.”
According to media reports, Grab’s venture with Singapore Telecommunications, and Sea have been shortlisted. Others on the retail bank licence shortlist include a group headed by gaming firm Razer and fintech firm MatchMove’s consortium with Singapura Finance.