Consumers could be winners as Singapore shakes up its digital banking sector

  • Singapore is about to shake up its banking sector for the first time in two decades that would allow technology players and non-banking firms to challenge traditional lenders.
  • The disruption could be a win-win situation for consumers, according to marketing information services company J.D. Power.
  • The Monetary Authority of Singapore on Thursday said it will now accept applications for the five new digital bank licenses that will be up for grabs until the end of the year.

Singapore is about to shake up its banking sector for the first time in two decades — a move that would allow technology players and non-banking companies to challenge traditional lenders. The disruption could be a win-win situation for consumers, according to marketing information services company J.D. Power.

The Monetary Authority of Singapore on Thursday said it will now accept applications for five new digital bank licenses until the end of the year.

MAS, both a regulator and the central bank of Singapore, announced in June that virtual bank licenses will be issued as part of “Singapore’s banking liberalization journey.”

The regulator will distribute up to two digital full bank licenses, which will allow non-banking entities to take deposits from retail customers. It also plans to issue up to three digital wholesale bank licenses for companies to serve small and medium-sized businesses and other non-retail segments.

Applicants have to meet a number of eligibility criteria, which includes showing they can manage a sustainable digital banking business and demonstrating experience in the technology or e-commerce sectors…

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