The Silicon Review ^Asia

Singtel, one of the largest mobile operators in Singapore, has made an announcement that it is steadily progressing with its digital bank plan.  Grab, a popular ride-hailing service provider in Singapore, has partnered with Singtel to be a part of the new initiative. Sachin Mittal, a Singapore-based analyst, stated that the new joint venture is all set to compete for a fully digital banking license. A fierce competition is happening in Singapore’s banking space because the Monetary Authority of Singapore is willing to give two full licenses to set up consumer digital banks. There is speculation that Singtel has pledged over $400mn for the digital banking effort, and Grab is currently holding close to 60 percent stake in this venture.

 Charles Wong was brought on board as the managing director in April for the bank venture, and it must be noted that Wong is an industry veteran with 20 years of experience in banking with Citi. Mittal added that if a company managed to get the license, then it definitely has the potential to grab a 2-4 % share in the market by default. Singapore’s banking sector is witnessing immense growth, so this is the right time for establishing a digital bank.