Grab and Singtel form a consortium to apply for a digital full bank license in Singapore

We have seen that the startup industry has gone through a lot in 2019 as we have seen a lot of startups going bust while we have also seen some startups becoming major companies. Talking about a new fintech startup, we have reports from TechCrunch revealing that Grab and Singtel have merged to form a consortium. This consortium has been made in Singapore as they have applied for a digital full bank license. As far as Grab is concerned, it was a ride-hailing startup at first which now calls itself as the super app which means it has everything you need to get done.

On the other hand, Singtel is one of the biggest telecoms in Singapore and both of them are getting a digital full bank license. This means if they are licensed, they will be able to provide simple credit and investment products. Other than that, they will also have to meet the Monetary Authority of Singapore’s (MAS) criteria before being a fully-functioning bank.

As far as the consortium is concerned, we have reports that Grab will hold a 60% stake in this partnership while the telecom operator, Singtel, will have a 40% stake as no one else is involved. Both the companies said in a joint statement that they are “committed to contributing to the financial services sector with a differentiated offering that addresses the unmet and underserved needs of consumer and enterprise segments in Singapore,”. They also revealed that they are doing this to give credit to SMEs which require it.

Revealing plans of the consortium, Grab’s Financial Group senior managing director said that their plans are to “build a truly customer-centric digital bank that will deliver a variety of banking and financial services that are accessible, transparent and affordable”. The application of a license for the full bank also comes as Singapore’s NAS said they will give two digital full bank licenses every year to liberalize its banking sector.