(Singapore, Dec 30, 2019)Super app Grab announced today that it is teaming up with Singtel to apply for a fully digital bank licence in Singapore.
Grab will have a 60 percent stake in the consortium entity while Singtel will hold a 40 percent stake.
Mr Reuben Lai, Senior Managing Director, Grab Financial Group, said: “In the past two years, we have launched and scaled financial services such as e-money, lending and insurance distribution into Southeast Asia’s largest fintech ecosystem.”
He said the natural next step is to build a truly customer-centric digital bank that will deliver a variety of banking and financial services that are accessible, transparent and affordable.
Grab says the new consortium is “committed to contributing to the financial services sector with a differentiated offering that addresses the unmet and underserved needs of consumer and enterprise segments in Singapore.”
The digital bank will aim to cater to the needs of digital-first consumers, who have come to expect greater convenience and personalization, and SMEs which cite lack of access to credit as a key pain point.
The consortium will be positioned to offer relevant products and services and become a trusted partner for consumers and enterprises; embedding banking and financial services seamlessly into the everyday lives of Grab and Singtel’s large, highly-engaged base of customers.
Mr Arthur Lang, CEO of Singtel’s International Group, said, “We’re excited by the opportunity to move into the digital banking space, which is a natural extension of the mobile financial services that we are already offering to our large base of customers. ”
“Just as we’ve been building an ecosystem of digital services to improve the way customers live, work and play, we want to fundamentally change the way consumers and enterprises bank. ”
He said together with Grab, it has a formidable set of assets and significant synergies to make banking more accessible and intuitive, and deliver much-needed product simplicity, speed and affordability.
Grab and Singtel have been driving innovation and financial inclusion with their respective financial services including Dash, VIA, GrabPay and GrabInsure.