Singapore based, Singtel has united with Southeast Asian ride hailing firm Grab as the pair seek an online banking license in Singapore.
The collaboration could pave the way for alterations within the region’s financial sector, with the firms outlining that as part of the deal Grab will take ownership of 60% of the merged enterprise.
Reuben Lai, Senior Managing Director, Grab Financial Group, said: “The core of Grab’s mission has always been to solve everyday challenges and unlock economic potential in Southeast Asia. In the past two years, we have launched and scaled financial services such as e-money, lending and insurance distribution into Southeast Asia’s largest fintech ecosystem.
“The natural next step is to build a truly customer-centric digital bank that will deliver a variety of banking and financial services that are accessible, transparent and affordable.
“We are excited to partner with Singtel, a well-respected brand in Singapore and the region, to provide a more bespoke service experience that will empower our users to save more, grow their wealth and transact seamlessly.”
The collaboration comes as Singapore’s banking sector embarks on a period of significant liberalisation, as it seeks to elevate the opportunity for alternative methods of payment and enhance payment efficiency within the region.
Arthur Lang, CEO of Singtel’s International Group, stated: “Singtel has always been an enabler of change. We’re excited by the opportunity to move into the digital banking space, which is a natural extension of the mobile financial services that we are already offering to our large base of customers.
“Just as we’ve been building an ecosystem of digital services to improve the way customers live, work and play, we want to fundamentally change the way consumers and enterprises bank.
“Together with Grab, which has extensive digital expertise and experience in this region, we have a formidable set of assets and significant synergies to make banking more accessible and intuitive, and deliver much-needed product simplicity, speed and affordability.”
