Applications open for digital bank licences

The Monetary Authority of Singapore (MAS), which kicked off the application process yesterday, said applicants must show a path towards profitability and be being able to reach under-served market segments.
The Monetary Authority of Singapore (MAS), which kicked off the application process yesterday, said applicants must show a path towards profitability and be being able to reach under-served market segments.PHOTO: ST FILE

Applicants for Singapore's new digital bank licences will have to hit the mark on a range of criteria, ranging from innovation to having a track record in the e-commerce or technology field.

The Monetary Authority of Singapore (MAS), which kicked off the application process yesterday, also said applicants must show a path towards profitability. Other criteria include being able to reach under-served market segments. Analysts say this could mean young millennials and start-ups.

The requirements suggest that regulators are seeking players who will add value to the current system rather than eat into other segments, say experts.

MAS will be issuing up to two licences for digital full banks and three for digital wholesale banks.

Applications are open till Dec 31, with the results out in mid-2020.

A version of this article appeared in the print edition of The Straits Times on August 30, 2019, with the headline 'Applications open for digital bank licences'. Print Edition | Subscribe