Award winners were welcomed by the industry and moving full steam ahead while those that missed the cut maintain their digital ambitions.
After four fintechs were awarded digital bank licenses in Singapore, the industry broadly welcomed the entrance of the new players.
«Their presence will add to the healthy competition, especially in the area of digital innovations, for the benefit of Singapore’s consumers and businesses,» said Wee Ee Cheong, UOB’s CEO and deputy chairman, in a congratulatory note.
«The entrance of new, fully digital market players is certainly welcome progress in up-leveling Singapore’s banking industry and democratizing access to financial services,» added Frederic Ho, APAC vice president at identity verification and eKYC platform Jumio. «I am excited to see the innovations that new players will bring to the market.»
Full Steam Ahead
Winners like the Grab-Singtel consortium, a full digital bank license awardee, are moving full steam ahead with plans to hire 200 staff in Singapore by year-end, according to a statement, across roles in product, data, technology, risk, finance and compliance.
«We’re coming in not like your typical fintech startup trying to bring down the, you know, incumbent banks,» said Arthur Lang, chief executive of Singtel’s international business in a «CNBC» report.
«Customers from multiple segments, including the underserved and underbanked, will be able to have their financial needs met seamlessly, powered by our next-generation cloud technology and data platform,» added Charles Wong, ex-Citi Singapore retail head and CEO of the new digital bank, in a separate statement, adding that a formal launch is due for early 2022.
Undeterred
Elsewhere, those that did not make the cut are undeterred and continue to pursue their digital ambitions.
Gaming firm Razer, for example, will maintain its plans to launch the «Razer Youth Bank» which targets millennial in markets like Malaysia and the Philippines, according to a statement from chief executive Lee Li Meng, adding that regulators from Europe, the Middle East and Latin America were also supportive of their potential entry.
More Licenses?
The iFast-Yillion-Hande consortium also failed to make the list but said it will continue its pursuit of a digital wholesale bank (DWB) license in an exchange filing over the weekend, suggesting the possibility of more issuances in the future by the Monetary Authority of Singapore.
«[During] the DWB application process, iFast has shared with shareholders and investors on how a digital bank license will further strengthen the group's fintech ecosystem,» the firm said. «The group remains committed in continuing its pursuit of a digital bank license, including in other jurisdictions.»
The Singapore-listed iFast was also strangely featured in a query by the Singapore Exchange Regulation (SGX RegCo), the bourse's watchdog, over «unusual price movements» in the run-up to the license announcement. SGX RegCo asked if the Singaporean wealth management platform had information about the license prior to the official announcement to which it claimed that it had no such knowledge.
Learn from Hong Kong
According to Jumio’s Ho, there are advantages to not being a first mover like Singapore and it can take away from the launches of players elsewhere, most notably in Hong Kong.
«We are also fortunate to be able to learn from other markets that have taken this pivotal step,» he explained. «For instance, a year into Hong Kong’s digital bank license issuance, banks have realized it requires more than competitive interest rates and promotions to carve out strategic differences for themselves in a saturated market. Other factors such as ensuring a secure, yet frictionless user experience, will be a top priority for banks and their customers.»
«Keeping the customer at the heart of all we do will ensure the continued success of our industry,» said UOB’s Wee. «This we believe should be the focus of innovation: addressing the diverse personal and business banking needs of our community.»
