Ant Group wins Singapore digital wholesale banking licence
- A consortium comprising Greenland Financial Holdings Group was also awarded a digital wholesale bank licence by the Monetary Authority of Singapore
- Both banks are expected to start operations from early 2022, MAS said
A consortium comprising Greenland Financial Holdings Group, Linklogis Hong Kong, and Beijing Co-operative Equity Investment Fund Management bagged the other licence.
The digital wholesale banks are expected to start operating from early 2022, MAS said.
The authority added that it may grant additional wholesale banking licences in the future, after reviewing the operations of the two licence winners in the pilot programme.
The Alibaba affiliate and operator of the Alipay electronic payment service is also targeting expansion in Southeast Asia, South Asia, Africa and the Middle East, according to people familiar with its plan. Alibaba owns the South China Morning Post. Ant had 731 million monthly active users of its Alipay app as of September 30.
Suspension of Ant IPO likely to cost banks US$400 million in fees
The regulators told Ant executives that in the future, greater financial inclusion driven by internet platforms would take a back seat to financial stability and protecting traditional lenders.
On Friday, the MAS also awarded licences to a consortium comprising Singaporean ride-hailing company Grab Holding and Singapore Telecommunications, and internet company Sea to run “full” digital banks.
The MAS last year announced a digital bank framework aimed to enable nonbank players with innovative digital business models to offer digital banking services.
Digital full banks will provide a wide range of financial services and take deposits from retail customers, while wholesale ones will focus on serving small and medium-sized enterprises and other non-retail clients.