In late August, the Monetary Authority of Singapore (MAS) began accepting applications for new bank licenses to be given to non-bank organizations.
Up to 5 licenses will be granted with applicants having until 31 December to submit their applications. Successful applicants will be announced in mid 2020.
Our research, while showing that consumer banking customers enjoy a generally good experience in Singapore – 86% say they are satisfied with digital services offered by mainstream banks – reveals that 72% are nonetheless interested in switching some or all of their banking to a new digital bank. Higher interest amongst younger millennials (25-34 year olds) indicates that existing banks may be more vulnerable with this age segment.
Although only a handful of companies have publicly expressed interest in the new digital banking licenses, Singapore consumers are most enthused by the prospect of digital banking services from Singtel (59%) and Grab (57%). High profile gaming company, Razer only attracts 33% interest.