The other two digital “wholesale bank” (DWB) licenses went to the Ant Group and a Greenland Financial consortium.

In a first for Singapore, it awarded licenses to operate digital full banks in the island nation to Sea Limited (NYSE: SE) and the consortium of Grab-Singtel (SGX: Z74). (The Business Times)

The two full-license winners, tech-heavy giants all of them, can now offer the whole range of banking services. These include customers’ banking accounts, deposits, debit and credit cards, and other services to both retail and corporate customers.

“The two selected DFB applicants were clearly stronger than the other eligible DFB applicants,” the Monetary Authority of Singapore (MAS) said.

None of the four licensees will have a physical presence. They’re likely to commence business in early 2022.

Grab-Singtel consortium

Grab, the ridesharing giant that has launched a slew of new financial products and services as a super-app. Singapore-based Singtel is a telecom giant. The two formed a consortium last year to bid for a Singapore digital license.

In a news release following the award of the license, Singtel said the consortium had appointed Charles Wong as CEO. It said it planned to set up a dedicated team to fill 200 roles by the end of 2021.

These roles will be in the areas of product, data, technology, risk, finance, and compliance.

Singtel said: “The opportunity to build a digital bank comes during a critical time when more people and businesses are going online, along with research showing that 40% of Singapore residents are underbanked. The consortium will focus on serving consumers and small businesses, starting with time-starved young PMETs, gig workers with flexible incomes, and micro-SMEs who face limited access to financing. Grab and Singtel will enable these underserved groups to easily access transparent financial services that are embedded in their everyday activities, helping them achieve a better quality of life.”

Grab-Singtel: Legacy banks need not worry!

Speaking to CNBC’s “Squawk Box Asia” on Monday, Arthur Lang, chief executive of Singtel’s international business, said the Grab-SingTel consortium was not like the typical fintech start-up that was trying to bring down the incumbent banks.

He added that Singapore was a major Asian financial center and that established banks here had highly successful digital businesses of their own.

As a result, Lang said these banks were very strong and formidable competitors, and it was not going to be a cakewalk for Grab-Singtel.

Sea Limited

Sea Limited was founded in Singapore in 2009 and has since become a leading global consumer Internet company. It’s three business pillars are Garena, Shopee, and SeaMoney. These offer digital entertainment, e-commerce, as well as digital payments, and financial services, respectively.

“Sea’s mission is to better the lives of consumers and small businesses through technology, and we are honored to be selected by the Monetary Authority of Singapore for the award of a digital full bank license and to have the opportunity to offer digital banking services addressing the underserved financial needs of young consumers and SMEs in Singapore,” said Forrest Li, Chairman and Group Chief Executive Officer of Sea, in a statement.

More licenses in the future?

The MAS said the digital wholesale bank licenses were introduced as a pilot and that depending on performance, it may review whether to grant more of such licenses in the future.

Related Story: Grab Seeks To Raise From $300 To $500M For Fintech Thrust