- The much-anticipated arrival of virtual banking in Singapore is unlikely to be an"aha" moment for consumer finance, but corporate banking will be different. One should expect disruption.
Gaming company Razer Inc. is leading one bidding consortium; ride-hailing superapp Grab Holdings Inc. is spearheading another. Both are seeking full bank licenses, which require S$1.5 billion in capital and local control. Billionaire founder Jack Ma's Ant Financial wants a wholesale bank permit. So does a consortium of locally based wealth management platform iFast Corp., China's Yillion Group and Hande Group.
Razer, backed among others by Sheng Siong Holdings Pte, a Singapore grocer, and Hong Kong tycoon Richard Li's insurance firm, will woo millennial customers. Still, a fully fledged bank is a different proposition. Start with deposits. How will Grab or Razer convince Singaporeans to switch allegiance from the three homegrown banks, DBS Group Holdings Ltd., Oversea-Chinese Banking Corp., and United Overseas Bank Ltd.?