Singapore May Allow Virtual Banks After Hong Kong, DBS Says
- CEO Piyush Gupta sees “no reason” why Singapore won’t act
- Virtual banks have a lower cost base than regular lenders
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Singapore could follow Hong Kong in handing out virtual banking licenses, according to the head of the largest local lender, in a move that would create another source of competition for the city state’s established banks.
“I see no reason why it would not,” DBS Group Holdings Ltd. Chief Executive Officer Piyush Gupta said in an interview with Bloomberg Television, when asked whether the Singapore authorities might issue similar licenses to Hong Kong. But he downplayed the likely impact on Singapore’s existing banks, which are already competing with international giants like Citigroup Inc. as well as financial technology startups.