The Monetary Authority of Singapore (MAS) has announced that 14 out of 21 applications to become digital banks have met the eligibility criteria for the Fintechs to be considered.
MAS announced on June 28, 2019, that it would issue up to two digital full bank (DFB) licenses and three digital wholesale bank (DWB) licenses.
These aspiring digital banks comprise of five digital full bank applicants and nine digital wholesale bank applicants. Each will progress to the next stage of assessment.
In January 2020, MAS reported that it had received 21 digital bank applications, comprising seven DFB applications and 14 DWB applications.
During the next stage of assessment, MAS will invite the 14 eligible digital banks to present their proposals via virtual meetings. Applicants will then be shortlisted based on their value proposition and business model, incorporating the innovative use of technology, ability to manage a prudent and sustainable digital banking business, as well as growth prospects and other contributions to Singapore’s financial centre.
In light of the ongoing COVID-19 crisis, MAS states that it has asked all eligible applicants to review the business plans and assumptions underpinning their financial projections, including sources of funding, and provide an independent review of these assumptions.
Approved digital banks should be notified by the end of this year.