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Singapore: 14 digital bank applicants to progress to next stage of assessment: MAS
THE Monetary Authority of Singapore (MAS) on Thursday said that 14 out of the 21 digital bank applications will progress to the next stage of assessment. This was after they had met the eligibility criteria.
Five of the 14 are digital full bank applicants, while nine are digital wholesale bank applicants.
The central bank and regulator had received 21 digital bank applications in January 2020, comprising seven digital full bank applications and 14 digital wholesale bank applications.
In the next stage of assessment, the 14 applicants will be invited to present their proposals via virtual meetings.
They will then be shortlisted based on their value proposition and business model which incorporates the innovative use of technology, as well as their ability to manage a prudent and sustainable digital banking business. The MAS will also look at the applicant’s growth prospects and other contributions to Singapore’s financial centre.
The MAS has asked all eligible applicants to review the business plans and assumptions underpinning their financial projections, including sources of funding. Eligible applicants will also need to provide an independent review of these assumptions.
This is due to the Covid-19 pandemic’s impact on macroeconomic and business conditions since the applications were received at end-2019.
The MAS said it does not expect the request for updated business plans and financial projections to affect the timeline for the award of the digital bank licences by the end of 2020.
Source: https://www.businesstimes.com.sg/banking-finance/14-digital-bank-applicants-to-progress-to-next-stage-of-assessment-mas