Many firms operating in Singapore are engaging in last-minute negotiations to meet the year-end deadline regarding Singapore's digital banking licenses, according to local media reports.

About three dozen firms including Standard Chartered, Singapore Telecommunications, and ride-hailing giant Grab are in talks to form consortiums that can meet high entry requirements to bid for Singapore's digital bank licenses, local newspapers reported.

The trio confirmed their interest in a license but declined to specify details. «There is a lot of speed dating going on,» said Varun Mittal, head of emerging markets fintech business at EY, who was quoted in «Channel News Asia».

The Need For More Banks 

Singapore's regulator announced frameworks earlier this year for online-only banks to operate in the city-state so as to boost more choices. These digital bank licensees can operate at lower capital requirements initially, before topping up. However, they must offer different services than those of incumbents.

«Even today, SMEs have great difficulty getting working capital finances because the kinds of credit evaluation and collateral that need to be committed don't work for them, but for bigger corporations,» said Shailesh Naik, CEO of fintech firm MatchMove, which is exploring joining a consortium.

Despite the opportunities, not all are keen to obtain a license. Last month, challenger bank Revolut and fintech firm Nium (formerly Instarem) announced they have decided against applying for a digital banking license in the country.