Singapore telecommunication, Singtel and a southeast Asian ride-hailing company, Grab has announced their partnership and applying for a digital bank license in Singapore. This license will make them allowed to serve simple credit and investment services, earlier they could meet the criteria of Monetary Authority of Singapore (MAS) to become a bank of full functionality.
In a joint statement they said that they are planning to expand business outside their traditional to contribute the financial service sectors. In this consortium Grab will hold a 60% share and the rest to Singtel. This business will lead them to offer a big liberalization of mobile financial services at a lower rate. They hope that it will be an expansion of the current mobile financial services offered to the customers.
Reuben Lai, Grab’s senior managing director has named this move as a next natural step of digital customer-centric banking. He says, it will serve an accessible, transparent as well as affordable verity of financing and banking services.
Though in 2012, Grab started with a ride sharing service, it extended its services to food delivery, logistics, ticket booking, hotel reservation billing itself with a super app. In 2016, introducing a digital wallet named GrabPay wallet, they joined to the financial services offering online payments, insurance products and lending services.
Singapore central bank will issue 3 wholesale bank licenses and two digital banking license that can accept deposits from customers and offer banking services under a Singapore-based company. Central bank of Singapore wants to make banking sectors liberalized.