Digital Banks Will Struggle in Singapore

Singapore is currently evaluating more than twenty applications for five digital banking licenses but many believe those approved will struggle to gain adoption; “In practical terms Singapore is already one of the best-served and heavily banked markets in the region,” said James Lloyd, Financial Technology and Payments Leader at EY, said to the FT. “Converting mass market customers to a new bank is going to be very challenging.”; more than 60 percent of the almost $500bn deposit market is already served by DBS, UOB and OCBC; Moody’s believes the combined companies will only acquire about 2 to 3 percent of held banking assets; if approved the companies could be given a vote of confidence across the region as many believe the the Singapore banking market is well governed and strict which could help companies launch more quickly in surrounding countries. Financial Times

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