Singapore-headquartered Grab Holdings is partnering local telecommunications company Singtel to form a consortium to apply for a digital full bank licence in Singapore.
Grab will have a 60 percent stake in the consortium entity while Singtel will hold a 40 percent stake.
In a joint press statement on Monday, December 30, the two companies said the digital bank will cater to the needs of two target groups. They are the digital-first consumers, who have come to expect greater convenience and personalisation, and SMEs which cite lack of access to credit as a key pain point.
Grab and Singtel have been driving innovation and financial inclusion with their respective financial services including Dash, VIA, GrabPay and GrabInsure. The new consortium is primed to create a new, digital-first model of banking that is easy to use, affordable and accessible, the press release said.
Commenting on the partnership, Reuben Lai, Senior Managing Director, Grab Financial Group, said, “The core of Grab’s mission has always been to solve everyday challenges and unlock economic potential in Southeast Asia. We are excited to partner with Singtel to provide a more bespoke service experience that will empower our users to save more, grow their wealth and transact seamlessly.”
Arthur Lang, CEO of Singtel’s International Group, added, “Singtel has always been an enabler of change. 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.”