Singapore’s first digital banks: What services can you expect

[kobayashiGT]

Singapore’s first digital banks: What services can you expect

source: https://www.straitstimes.com/business/banking/singapore-digital-banks-what-you-need-to-know

SINGAPORE - The winners of Singapore's first digital bank licences were revealed on Friday (Dec 4). This means that for the first time here, non-banks will be allowed to provide banking services.

Digital full bank licences went to the Grab-Singtel consortium and tech giant Sea. 

The Monetary Authority of Singapore also granted digital wholesale bank licences to Jack Ma’s Ant Group as well as a consortium comprising Greenland Financial Holdings, Linklogis Hong Kong and Beijing Co-operative Equity Investment Fund Management. 

The eagerly awaited announcement, expected in June, was delayed after the assessment period for the award was extended due to the Covid-19 pandemic.

At stake were five digital bank licences, which included up to two full bank licences and up to three wholesale bank licences.

1. What's a digital full bank?

A digital full bank can serve both retail and corporate customers.

Like any traditional bank, it can provide ordinary Singaporeans with services like having an account, deposits, loans, debit and credit cards, payments and investment products.

But all banking services will be done online, with the digital bank not having a physical branch or ATMs.

This is different from having traditional banks put some banking services online via the Internet or mobile apps.

2. What's a digital wholesale bank?

They will serve non-retail customers only, like small and medium-sized enterprises.

3. How were the winners chosen?

A total of 21 applications were submitted for the licences and 14 were shortlisted.

The bidders included e-commerce companies, tech and telco firms, and fintechs such as crowdfunding platforms and payment services providers.

The winners were judged on the following criteria:

- Their value proposition and business model

- The sustainability of their digital banking business

- Their innovative use of technology

- Growth prospects and other contributions to Singapore's financial centre

Quote

Razer didn't made it.  I guess they will go back to making mice and keyboard better. 😐

 

[Volvobrick]

Better don't put too much money with them. No table for you to bang when things go wrong! 

 

[1fast1]

So you can't deposit cash directly? Only via online transfer or cashier's order/cheque? And you can only withdraw physical money after transferring to a real bank and going to their branch or ATM?

Can you write non-encashable cheques drawn on that account? Can you use credit services like credit cards? Or debit cards to make payments (but not withdraw money)?

Edited December 6, 2020 by Turboflat4

[Enye]

47 minutes ago, Volvobrick said:

Better don't put too much money with them. No table for you to bang when things go wrong! 

 

can try banging own computer table... might work

😅

[Volvobrick]

Maybe should just borrow a lot from them. And not repay. They would only send email/sms reminders and not physical debt collectors. They can knock on my virtual door. 

 

[13177]

Digital bank? Means they are closing more physical bank? So means bank teller might lose their job?

[inlinesix]

DBS already got digibank in India since 2016.

Looks like we are not that smart as a nation.

Edited December 6, 2020 by inlinesix

[CremornePt]

"Cheques", "cash", "deposits", "bank tellers"... - are you sure you guys are ready for digital banking? 😀

[Jamesc]

I intend to take a big big loan from them

and don't pay back.

Digital bank means no branch and no staff right?

So don't pay back just change email address and they cannot find you.

How the big computer can find you

and break your legs to make you pay back?

[Jamesc]

Btw the most important question.

The Indian bank DBS saved lost a lot of money

is it because they made a lot of loans and Indian people never pay back?

So what happened to the people that never pay back?

They get away Scot free?

Now DBS has lots of money to save them

because we all pay back our loans.

Is there a lesson to be learnt here?

If India got digibank since 2016 means they very smart hor.

Shouldn't we be learning from the smart people?

Instead of giving them our hard earn money?

Edited December 6, 2020 by Jamesc

[Jamesc]

In my company I always say 3 things.

Good customer keep, bad customer give competitor.

Stocks of cars that can sell buy, cars that cannot sell don't buy.

Only take in good staff, bad staff let competitor have.

I should have been a banker.

I would have no 4 rule.

Profitable banks buy, banks that lose money let competitors buy. 

[Stary]

I don't understand the concept leh.......

So cash still use the traditional banks. 

But the traditional banks also got digital banking what.

So these 4 digital banks is for what use since cannot deposit cash or cheque? 

[inlinesix]

8 minutes ago, Starry said:

I don't understand the concept leh.......

So cash still use the traditional banks. 

But the traditional banks also got digital banking what.

So these 4 digital banks is for what use since cannot deposit cash or cheque? 

Since everything is done online, no cash or cheque deposit.

[Voodooman]

3 hours ago, inlinesix said:

Since everything is done online, no cash or cheque deposit.

Soon we can leave our wallet at home and just use our phone. 

[Wt_know]

4 minutes ago, Voodooman said:

Soon we can leave our wallet at home and just use our phone. 

soon? prc already done that at least 3-5 years ago

we are already fall behind and claim smart nation  

take so long for diff agency and private to agree on SGQR and PAYNOW

Edited December 6, 2020 by Wt_know

[Voodooman]

7 hours ago, 13177 said:

Digital bank? Means they are closing more physical bank? So means bank teller might lose their job?

Yes. Most of the banks have announced planned closure of xxx branch, i read. 

Hope digital banks will pay more for deposit.

 

[Voodooman]

42 minutes ago, Wt_know said:

soon? prc already done that at least 3-5 years ago

we are already fall behind and claim smart nation  

take so long for diff agency and private to agree on SGQR and PAYNOW

Don't you think it is intentional?   

Why should we allow the Chinese to dominate our local payment system?  If my conspiracy theory got legs, it means our local boys are now more ready. 

[inlinesix]

1 hour ago, Voodooman said:

Yes. Most of the banks have announced planned closure of xxx branch, i read. 

Hope digital banks will pay more for deposit.

I had difficulty to locate DBS Bank that is opened.

Just because internet banking cannot handle foreign FD instruction.