Singapore aims to become regional hub for digital banks

Singapore Aims To Become Regional Hub For Digital Banks

Singapore is undertaking steps to become a regional hub for technology firms with advanced data expertise, particulally fintechs and digital banks, according to Ravi Menon, managing director of the Monetary Authority of Singapore, who spoke to Bloomberg News.

“Singapore wants to be a base for these players as they grow in the region,” Menon told the newswire.

“And that means anchoring them here at the early stage of their development and allowing them access to the domestic banking market,” he added.

This would also have positive implications for Southeast Asia where more than 70 per cent of adults, or about 296 million people, are un- or underbanked, according to a report by Bain & Co., Google and Singapore’s sovereign wealth fund Temasek, which also found that many small and medium-sized firms in Southeast Asia are being provided with inadequate banking services by existing banks.

It would also present an opportunity for providers of virtual financial services, especially loans. The market for lending via digital channels is expected to more than quadruple in the region to $110 billion by 2025.

Central to the monetary authority’s ambitions are plans to award as many as five digital banking licenses to non-banks, including three foreign firms. Applications are due by the end of December. Menon said he expects non-financial firms to work with traditional banks through joint ventures or in other forms of partnerships.

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Singapore is undertaking steps to become a regional hub for technology firms with advanced data expertise, particulally fintechs and digital banks, according to Ravi Menon, managing director of the Monetary Authority of Singapore, who spoke to Bloomberg News. “Singapore wants to be a base for these players as they grow in the region,” Menon told the newswire. “And that means anchoring them here at the early stage of their development and allowing them access to the domestic banking market,” he added. This would also have positive implications for Southeast Asia where more than 70 per cent of adults, or about...

Singapore Aims To Become Regional Hub For Digital Banks

Singapore is undertaking steps to become a regional hub for technology firms with advanced data expertise, particulally fintechs and digital banks, according to Ravi Menon, managing director of the Monetary Authority of Singapore, who spoke to Bloomberg News.

“Singapore wants to be a base for these players as they grow in the region,” Menon told the newswire.

“And that means anchoring them here at the early stage of their development and allowing them access to the domestic banking market,” he added.

This would also have positive implications for Southeast Asia where more than 70 per cent of adults, or about 296 million people, are un- or underbanked, according to a report by Bain & Co., Google and Singapore’s sovereign wealth fund Temasek, which also found that many small and medium-sized firms in Southeast Asia are being provided with inadequate banking services by existing banks.

It would also present an opportunity for providers of virtual financial services, especially loans. The market for lending via digital channels is expected to more than quadruple in the region to $110 billion by 2025.

Central to the monetary authority’s ambitions are plans to award as many as five digital banking licenses to non-banks, including three foreign firms. Applications are due by the end of December. Menon said he expects non-financial firms to work with traditional banks through joint ventures or in other forms of partnerships.

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