14 of the 21 digital bank applications received by the Monetary Authority of Singapore (MAS) have met the eligibility criteria required for the application to be considered.
In a press statement, MAS said these eligible applicants comprise five digital full bank (DFB) applicants and nine digital wholesale bank (DWB) applicants. They will be able to progress to the next stage of assessment.
In the next stage of assessment, MAS will invite the 14 eligible applicants to present their proposals via virtual meetings.
Applicants will then be shortlisted based on three criteria:
- Value proposition and business model, incorporating the innovative use of technology
- Ability to manage a prudent and sustainable digital banking business
- Growth prospects and other contributions to Singapore’s financial centre
MAS also noted in its statement that the COVID-19 pandemic has significantly impacted macroeconomic and business conditions since the applications were received at the end of 2019.
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.
MAS added that it does not expect the request for updated business plans and financial projections to affect the timeline for award of the digital bank licences by the end of this year.