Grab Holdings Inc announces that it has formed a consortium to apply for a digital full bank licence in Singapore with Singtel, the communications technology group.
Grab will have a 60 percent stake in the consortium entity while Singtel will hold a 40 percent stake.
In a statement, it is stated that Grab and Singtel seek to contribute to the financial services sector with a differentiated offering that addresses the unmet and underserved needs of consumer and enterprise segments in Singapore.
“The digital bank will aim to cater to the needs of digital-first consumers, who have come to expect greater convenience and personalisation, and SMEs which cite lack of access to credit as a key pain point,” the statement reads.
The consortium will offer relevant products and services and become a partner for consumers and enterprises. It plans to include banking and financial services into the everyday lives of Grab and Singtel’s base of customers.
Also Read: The factors driving the success of Grab and what it took to become a market leader
Reuben Lai, Senior Managing Director, Grab Financial Group, said, “In the past two years, we have launched and scaled financial services such as e-money, lending, and insurance distribution into Southeast Asia’s fintech ecosystem. The natural next step is to build a customer-centric digital bank that will deliver a variety of banking and financial services that are accessible, transparent, and affordable.”
Arthur Lang, CEO of Singtel’s International Group, said, “Just as we’ve been building an ecosystem of digital services to improve the way customers live, work, and play, we want to fundamentally change the way consumers and enterprises bank.”
“Together with Grab, which has extensive digital expertise and experience in this region, we have a set of assets and synergies to make banking more accessible and intuitive, and deliver much-needed product simplicity, speed, and affordability,” he continued
If successful in their application, Grab and Singtel said it will present a new banking experience for everyday banking needs with personalisation, financial technology, and innovation.
Earlier in December, ride-hailing giant Grab announced the launch of GrabPay Card, a numberless physical and digital card that enables its users to access rewards ecosystem and conduct payments.
Also Read: Strengthening its expansion into fintech, Grab introduces GrabPay Card
The card is the result of a partnership between the company and Mastercard, which was first announced in October last year.
It will enable users to transact in any online or offline merchants that accept Mastercard around the world, regardless of their banking status.
In June, the Monetary Authority of Singapore (MAS) announced that the government is set to issue up to five digital banking licenses to provide an opportunity for non-bank finance industry players to enter the banking scene, which is currently dominated by traditional banking institutions.
Several companies have expressed their interests in applying for the Singapore digital banking license, including Grab and Razer.
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Image credit: Grab
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