DBS Bank says ‘meh’ to virtual bank licence, will pursue own digital initiatives and branches

Reading Time:2 minutes

Ajay Mathur, head of consumer banking and wealth management at DBS Bank (Hong Kong), says the bank is making “very good progress” in its own digital initiatives. Photo: David Wong

Published: 6:58pm, 16 Jul 2018Updated: 10:29pm, 16 Jul 2018

DBS Bank, the largest lender in Singapore and Southeast Asia, said it would focus on a number of digital initiatives to enhance its online and mobile banking services while retaining its structure as a traditional bricks-and-mortar institution.

DBS, which has 34 branches in Hong Kong, said there was little to gain from operating a virtual bank platform, which offers mainly retail banking services without physical branches.

“We don’t feel the need to launch a virtual bank,” said Ajay Mathur, head of consumer banking and wealth management at DBS Bank (Hong Kong). “We are making very good progress in terms of introducing a number of digital initiatives.”

In a push to drive financial technology (fintech) development in the Asian financial hub, the Hong Kong Monetary Authority (HKMA) will start issuing licences to operate virtual banking platforms as early as the end of this year or in the first quarter of next year.

Alex Cheung, head of institutional banking at DBS, says the bank will continue to build digital services “on the current foundation”. Photo: David Wong

More than 50 companies have expressed interest the licence, the HKMA said in May. While fintech firms responded with enthusiasm, among traditional banks only Standard Chartered Bank has so publicly announced it would apply for the licence. The application deadline is August 31.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x