Grab and Singtel will launch their own digital bank
Grab and Singtel - one of the leading telecommunications providers in Singapore - announced that they are applying together for a digital banking license. Given the approval of Monetary Authority of SIngapore, their project will be able ro provide basic credit and investment options to the customers.
According to the announcement, Grab will receive a 60% stake, Singtel will take the rest. The companies state, that they are planning to highlight the yet undeveloped needs of the market in the region and offer new solutions. This iincludes working with SMEs in SIngapore, who are in dire need of new credit sources. The problem is indeed notable in Southeast Asia, as many startups experience difficulties in acquiring the additional credit.
Grab started out as a taxi and delivery service and is currently creating its own mobile services ecosystem. Their bid comes as part of MAS effort to make Singapore’s banking landscape more “democratic” with five new licences.