Remittance start-up Nium - which recently rebranded from Instarem - has withdrawn from the contest for a Singapore digital wholesale banking licence, doubling down on its global business-to-business payments instead.

"Singapore banks are extremely well entrenched in that ecosystem," Nium co-founder and chief executive Prajit Nanu said in an interview, referring to wholesale banking.

"Our strengths lie elsewhere and we have decided to consolidate and focus on those areas."

Backed by investors including Temasek unit Vertex Ventures and Rocket Internet, Singapore-based Nium said it was interested in a licence after the Monetary Authority of Singapore announced in July that it would grant as many as two digital full-bank licences and up to three digital wholesale bank licences.

OCBC Bank is in talks with Keppel Corp and peer-to-peer lender Validus Capital to form a consortium and apply for a digital wholesale banking licence before a year-end application deadline, according to media reports on Monday. Other companies that expressed a desire to apply included Singtel, Grab and Razer. Nium is the first to declare its withdrawal.

Mr Nanu said his company will focus on building a platform that enables firms to send, spend and receive money around the world.

Nium raised US$41 million (S$55.7 million) earlier this year, making it one of the best funded fintech start-ups in South-east Asia.

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