Maybank Singapore is considering to apply for one of the five digital banking licenses to be unveiled in Singapore. The final decision depends on having a value proposition.
Maybank Singapore is in talks with its head office in Malaysia on the matter, and the bank’s decision lies in coming up with a new value proposition, said Alvin Lee, Head of Community Financial Services Singapore and Group Wealth Management, Maybank.
The bank is open to all options are on the table, whether to go solo through the existing Internet-only bank framework, or to apply for the digital full-bank license, or the digital wholesale bank license with a partner. «We are definitely in internal discussions on whether we should be in or out,» said Lee, who was quoted.
As Maybank’s current license already allows it to establish a digital bank, other factors such as finding the right partner to complement its strengths and weaknesses could be pivotal.
«We can be the ‘fin’ and we look for a ‘tech’ partner – or something like that,» Lee said, adding that such partnership would require the bank to work with a regional player and not just one that operates solely in Singapore.
Space Is Heating Up
The digital full-bank license will allow it to provide a wide range of financial services and take deposits from retail customers, while the digital wholesale bank license will allow it to serve SMEs and other non-retail segments.
With applications due to open by the end of this week, various non-bank players have signaled interest. They include tech unicorn Grab, fintech firm iFast Corporation, peer-to-peer lender Validus Capital, e-wallet player Liquid Group, and gaming firm Razer. Meanwhile, OCBC is in talks with Singtel on applying for a digital banking license.