Malaysia’s Razer Fintech, the Fintech division of Razer (a multinational financial service provider), has revealed that it plans to launch a digital banking platform in overseas markets.
Razer, which is also (mainly) a gaming company, has applied for a virtual banking permit in Malaysia but has not yet received authorization.
The company is considering various opportunities in Southeast Asia and other emerging markets including India and even Latin America as it plans to diversify its business by offering Fintech services, according to Razer CEO Lee Li Meng.
Razer Pay’s digital payment system is currently available in Malaysia and Singapore.
Lee, who also serves as the firm’s CSO, has reportedly said that Razer is well-positioned to establish a digital banking platform. Lee claims that the company is familiar with the strict regulatory requirements in most Asian countries, particularly those which are relevant to introducing a virtual banking solution.
Lee added that certain policies and regulators are now beginning to resemble “bank-like regulations.”
“So we are already prepared from that perspective to put the right processes in place so that if we get the digital banking license, we should be able to pivot very quickly from just being a digital payments business to running a digital banking platform.”
Razer has offices both in Singapore and Irvine, California. The company mainly offers gaming-related products and services. It has also diversified its business by launching Fintech solutions.
Razer, which is a Hong Kong-listed firm, has recorded a loss of $17.7 million during the past 6 months.
Lee confirmed that Razer was seeking banking opportunities in overseas markets because the local sector is highly competitive. Even if Razer acquires a local permit to offer banking services, the firm will continue to explore overseas options, Lee said.
Razer’s banking business has been launched with the help of a consortium (60% owned by Razer) which includes Sheng Siong Holdings, technology company LinkSure Global, automotive marketplace Carro, insurance provider FWD and Insignia Ventures Partners.
The Monetary Authority of Singapore (MAS) stated in June 2019 that it would offer two digital full-bank licenses and three digital wholesale bank licenses. The regulator revealed in June 2020 that 14 out of the 21 virtual bank applications had met the relevant requirements and would now proceed to the next stage of the licensing process.