The race for Singapore digital bank licenses heats up as Razer and Ant Financial join the fray    

Following the recent disclosure that Grab and Singtel have applied for a digital full bank license in Singapore, two more household names are joining the quest to disrupt banking in the Lion City.

Global gaming firm Razer, the Singapore and Irvine, California dual-headquartered firm which is listed on the stock exchange of Hong Kong, has confirmed its application for a digital full bank license in Singapore.

Ant Financial has also tendered its application for a wholesale license which would permit it to provide online banking services to corporate clients.

An Ant spokesperson told The Asset, “In line with our commitment to promoting financial inclusion globally, we have submitted an application to the Monetary Authority of Singapore for a digital wholesale banking license. We look forward to contributing to the development of the digital banking landscape in Singapore.”

In a notice to the Hong Kong bourse Razer confirmed that via its fintech arm Razer Fintech, it has submitted its application to the Monetary Authority of Singapore for a digital full bank license.

According to the statement the gaming and lifestyle firm is acknowledging its appeal to a younger demographic by planning to establish the ‘Razer Youth Bank’.

Razer has been building a consortium of strategic partners who propose to take up equity interests in Razer Youth Bank. Such strategic partners include Sheng Siong Holdings; FWD; Linksure Global; Insignia Ventures Partners; and automotive marketplace platform Carro.

Consortium details will be finalized in due course and are subject to the successful outcome of the application and the establishment of the Razer Youth Bank.

Among other significant recent moves supporting its digital bank aspirations, in early December 2019 Razer Fintech appointed Neal Cross as an advisory board member.

Cross was a key figure behind the digital transformation of Singapore’s largest lender DBS Bank. DBS won numerous major international awards for best bank and best digital bank during his tenure as chief innovation officer at the bank between 2014 and 2019.

For Hangzhou-based Ant Financial Services Group which claims to be the world’s largest payment and lifestyle platform, a Singapore digital banking license would assist the firm’s push to diversify its revenue base and expand outside of the Chinese domestic market.

According to the guidelines issued by the MAS, it is expected that Razer Fintech, Ant Financial and other applicants will be informed of the outcome of their submissions by Singapore’s financial regulator in mid-2020.