Razer Notes Tight Deadline for Digital Bank Licence
Razer is still weighing the decision on whether to apply for a digital banking license in Singapore due to the complexities involving a consortium and a tight deadline.
Singapore's gaming lifestyle company Razer has been approached by prospective partners including some regional and global names to form a consortium in applying for a license in Singapore, but the company finds the four-month timeframe in deciding, rather «tight».
«There is an awful lot that needs to be done, especially if the parties involved are listed companies with a regional or global presence,» said Razer chief strategy officer Lee Li Meng, who was quoted in «Business Times»(behind paywall). The Monetary Authority of Singapore (MAS) is looking to issue up to two retail licenses and three digital wholesale bank licenses, and applicants are to submit their proposals by 31 December.
Getting Everyone On the Same Page
Consortium parties often have to nail down agreements with each together before getting approval from their respective boards. This can be a lengthy process on its own, he explains.
«So, the question is if four months is sufficient time to get everyone on the same page,» Lee asked.
Consortiums Are Popular
Applying for digital banking licenses through a consortium is becoming a common strategy amongst digital banking aspirants. In November, V3 Group is considering a bid with Far East Organization, Temasek's Heliconia and EZ-Link.
Recently, ride-hailing giant Grab is said to be in discussions with Singtel and Standard Chartered for the license. Banking stalwart OCBC Bank is believed to be in talks with conglomerate Keppel Corporation, peer-to-peer lender Validus Capital, and venture-capital fund Vertex Ventures.
