Singaporean Ride-hailing service, Grab, and its network operator compatriot, Singtel, joined arms to establish a new digibank in Singapore. (Image via CNA)

Grab, Singtel join arms to make a digibank

Alfonsus Adi Putra
Business & Industry
Internet & IT
Dec 31, 2019
2201
Announced on Monday, an online ride-hailing service based in Singapore, Grab, together with its network operator compatriot, Singtel, intended to apply for a digital full bank license in the ASEAN country jointly to Monetary Authority of Singapore (MAS). Both companies will create a consortium where Grab will hold 60 percent of the stake, and Singtel will hold 40 percent.

The full bank license will enable them to offer simple credit and investment products should they meet the requirements of MAS. The Singaporean monetary authority itself revealed in June that it will issue up to two digital full bank licenses, and three digital wholesale bank licenses, an effort to liberalize the Singaporean banking sector.

Digital wholesale bank license only allows corporate customers, while digital full bank license allows the company to take a deposit from their retail customers.

Launched in 2012, Grab was basically a ride-hailing service. However, embracing the mission as the “Leading super app in ASEAN”, Grab has expanded its wings to not only transportation but also deliver, ticket and hotel booking, medical care, and even digital payment!

In 2016, Grab entered the financial world by introducing GrabPay, an introduction to Grab Financial Group also launched in the same year. Grab Financial Group also provides insurance products with more than 100 million subscribers across ASEAN.

Singtel also expanded its business from merely network operator to multi-functional firm. Previously, Singtel also trod its foot onto the mobile payment field by launching “Dash”, an all-in-one mobile wallet.

In a joint statement released by the Senior Managing Director of Grab Financial Group, Reuben Lai, Grab and Singtel wants to establish a “customer-centric”, accessible, transparent, and affordable digital bank.

Grab x Singtel digibank intends to cater to the address and underserved needs of the consumers and enterprise segments in Singapore, especially the small to medium enterprises (SMEs) and other instances finding difficulty to access credit in conventional banks.

Source: https://tcrn.ch/36er05N

Business , Banking , Finance , Economy , Trade , Technology , Telecommunication , Service , Internet , Payment , Insurance , Ride-hailing , Application , ASEAN , Singapore , Grab , Singtel