These applicants assessed as eligible will progress to the next stage of assessment, where they will be invited to present their proposals via virtual meetings.
MAS (Monetary Authority of Singapore) has announced that 14 of the 21 digital bank applications have met the eligibility criteria required for the applications to be considered.
In January 2020, MAS said it had received 21 digital bank applications, comprising seven digital full bank applications and 14 digital wholesale bank applications. It has so far reviewed all the applications against the eligibility criteria announced last August.
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The applicants assessed as eligible – comprising five digital full bank applicants and nine digital wholesale bank applicants – will progress to the next stage of assessment, where they will be invited to present their proposals via virtual meetings.
Applicants will then be shortlisted based on their (i) value proposition and business model, incorporating the innovative use of technology, (ii) ability to manage a prudent and sustainable digital banking business, and (iii) growth prospects and other contributions to Singapore’s financial centre.
According to Reuters sources, the Grab-Singtel consortium; Sea Group; the Razer consortium; and the Singapura-MatchMove consortium are among the 14 applicants that have been deemed eligible.
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In light of the Covid-19 pandemic and its has impacts, MAS has asked all eligible applicants to review their business plans and assumptions underpinning their financial projections, including sources of funding, and provide an independent review of these assumptions.
MAS expects to award two digital full bank licences and three digital wholesale bank licences by the end of this year.
MAS was earlier expected to announce the five successful applications in June 2020, but this has since been deferred due to enhanced safe distancing measures in Singapore to prevent the spread of Covid-19.