Singapore delays the distribution of Digital Bank licenses, but the pace of financial innovation remains unchanged.

Singapore regulators announce delay in Digital Bank license distribution.

The financial regulatory authority of Singapore recently announced that it will extend the evaluation period for digital bank licenses. The results of the applications, originally scheduled to be announced in June this year, will be postponed to the second half of the year. The regulatory agency stated that this decision aims to allow applicants to focus their resources on tackling the challenges brought by the current pandemic, while also providing the regulatory authority with more time to ensure the stability of the financial system.

Earlier this year, regulators stated that they had received 21 applications for Digital Bank licenses and planned to announce the list of successful applicants in June. These institutions were originally scheduled to start operations in mid-2021. However, due to the impact of the pandemic, this timeline had to be adjusted.

In June last year, Singapore's financial regulatory authority announced a pilot program to open applications for 5 digital bank licenses, aimed at providing opportunities for non-traditional banking background enterprises to enter the local banking industry. These 5 licenses include 2 full digital bank licenses and 3 digital wholesale bank licenses targeted at small and medium-sized enterprises and other non-retail sectors.

According to the list of applicants released earlier this year, several well-known technology companies participated in this application. Among them, two Chinese internet giants applied for a Digital Bank license. Additionally, it is reported that a mobile phone manufacturer formed an alliance with several financial and energy companies to jointly submit an application to the regulatory authorities. Furthermore, a gaming peripheral manufacturer and a leading technology company from Southeast Asia also applied for a full Digital Bank license and a Digital Bank license, respectively.

The decision to postpone this time reflects the cautious attitude of regulatory agencies in the face of global economic uncertainty, while also providing more ample preparation time for the applying institutions. Industry insiders believe that although the licensing time has been delayed, Singapore's determination to promote financial technology innovation has not changed, and the introduction of Digital Banks will still bring new vitality and opportunities to Singapore's financial industry.