MAS to issue 5 digital bank licenses

The Monetary Authority of Singapore will issue up to 5 new digital bank licenses, enabling fintech companies to become full-fledged banks. MAS said of the 5 license holders, up to 2 will be able to become digital banks, as long as the companies are based in Singapore and are controlled by Singaporeans and serving retail customers. The other 3 can become digital wholesale banks, serving small and medium enterprises and other nonretail segments and are open to locally incorporated foreign companies. The latter banks are not allowed to take only fixed deposits of at least S$250,000 and must have a minimum paid-up capital of S$100 million. Digital banks can operate without any physical branch or teller machines and need not have a history in the banking business to apply.