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Singapore Digital Bank Wannabes Must Prove They Can Profit

  • Virtual bank guidelines require sustainable business models
  • Partnerships with strong local firms may help Grab, Razer
A Singaporean flag flies in front of the Monetary Authority of Singapore headquarters in Singapore.

A Singaporean flag flies in front of the Monetary Authority of Singapore headquarters in Singapore.

Photographer: Paul Miller/Bloomberg
Updated on

Grab Holdings Inc. and gaming company Razer Inc. will need to demonstrate how their millions of users can help them generate profits if the two technology firms are to win one of Singapore’s coveted virtual banking licenses.

That’s because the Monetary Authority of Singapore is putting more emphasis on profitability and strong capital requirements than some other regulators inviting fintech firms into banking. Both Grab and Razer have expressed interest in submitting separate bids for one of the five digital banking licenses on offer, part of a government strategy announced earlier this year to strengthen competition in financial services.