Razer teams up with partners including Sheng Shiong, FWD to join Singapore’s digital banking race
- Razer Fintech will own 60 per cent of a group that has applied for a full digital banking license in Singapore
- The consortium is the second group to submit an application for the license, after Grab Holdings and Singapore Telecommunications announced their joint bid
Gaming company Razer has teamed up with home-grown Singaporean entrepreneurs and Asian billionaires to apply for a full digital banking license, joining the race to create virtual lenders in the city state.
Razer Fintech, the company’s financial technology unit, will own a 60 per cent stake in the group, while five partners will hold the remaining 40 per cent, according to a statement.
They are Sheng Siong Holdings, the private company of the Singaporean Lim brothers behind a popular local supermarket chain; billionaire Richard Li’s insurance company FWD Group; internet entrepreneur Chen Danian’s tech company LinkSure Global Holdings; Insignia Ventures Partners; and Carro, an online car marketplace.
Efforts to open up the Singapore banking industry to technology companies come on the heels of a similar move in Hong Kong, where units of Ant Financial and other Chinese firms including Tencent Holdings obtained licenses.
Southeast Asia’s digital lending market is expected to more than quadruple to US$110 billion by 2025, according to a report by Bain & Co, Google and Temasek Holdings. Instead of fighting local banks, Razer Fintech plans to target the youth and millennial segment in Singapore. But eventually, it aims to roll out globally as Razer Youth Bank, making it the first bank of its kind.