Arival Bank joins digital banking race in Singapore
Another fintech joins Singapore’s digital banking license race by applying for a digital wholesale banking license. The next hopeful is Singapore-based Arival Bank, founded in 2017, which serves small and medium-size businesses as well as cryptocurrency enterprises.
The finance firm reported that it plans to compile various fintech products from third-party service providers and make them available on a single platform. In addition, it looks to offer a banking-as-a-service platform that would help other fintech firms launch.
Berger noted that the company’s “compliance-as-a-service” product, which provides easily integrated compliance solutions, also serves as a key differentiating factor in favor of Arival.
With its bid, Arival plans to focus on serving what it calls “abnormal” clients or higher-risk customers, who usually get turned down by more traditional banks, according to a Business Times report.
“The focus on ‘abnormal’ or underbanked SMEs gives us the opportunity to not compete with other digital or traditional banks, avoid spending money on advertising or customer acquisition, and allows us to focus on margins,” Berger told the Business Times.
“It gives us a unique entry to the US banking market as well, and allows us to contribute to an ecosystem that is in need of a natural remedy for economic boost such as fintech,” he added.
Aside from the fintech firm’s application banking applications in Singapore and the United States, Arival seeks to receive similar licenses in Europe and has already started the application process. The company plans on receiving them by the end of 2020.