Singapore Delays Digital Bank License Approval, 21 Application Results Postponed to the Second Half of the Year

On April 9, Singapore's financial regulatory authority announced that it would extend the approval time for Digital Bank licenses. The results of the applications, originally scheduled to be announced in June, will be postponed until the second half of this year. The regulatory authority stated that this decision aims to allow the applying institutions to focus on coping with the current impact of the pandemic, while also enabling the regulatory authority to better maintain the stability of the financial market.

At the beginning of this year, regulatory authorities stated that they had received 21 applications for Digital Bank licenses and planned to announce the list of successful applicants in June. The approved institutions were originally scheduled to begin operations in mid-2021. However, as the impact of the pandemic continued to expand, this plan had to be adjusted.

At the end of June last year, Singapore's regulatory authority announced the opening of applications for 5 digital bank licenses as a pilot project for financial innovation, aimed at providing opportunities for enterprises from non-traditional banking backgrounds to enter the local banking business. These 5 licenses include 2 full digital bank licenses and 3 digital wholesale bank licenses aimed at small and medium-sized enterprises and other non-retail sectors.

According to the list of applicants published at the beginning of the year, several well-known technology companies participated in this application. Among them, two Chinese internet giants applied for digital wholesale bank licenses. It has been reported that one of the companies formed an alliance with multiple partners to jointly submit an application to the regulatory authorities. In addition, a gaming peripheral manufacturer and a well-known ride-hailing platform from Southeast Asia also participated in the application, applying for a full digital bank license and a digital wholesale bank license, respectively.