The Monetary Authority of Singapore issued four digital-only banking licenses to non-bank players, spurring new products and competitive dynamics.

License Framework and MAS Rationale

The Monetary Authority of Singapore (MAS) announced on 28 June 2019 that it would issue up to five new digital bank licenses, marking a significant liberalisation of the city-state's banking sector. The framework allowed non-bank players to apply for two types of licenses: up to two digital full bank (DFB) licenses and up to three digital wholesale bank (DWB) licenses. The move extended eligibility beyond traditional banking groups, which had previously been permitted to operate internet-only bank (IOB) subsidiaries since 2000.

DFB licenses, which permit a wide range of financial services including accepting deposits from retail customers, were restricted to companies headquartered in Singapore and controlled by Singaporeans. Foreign firms could qualify only through joint ventures meeting the headquarters and control requirements. DWB licenses, designed to serve corporates and small and medium-sized enterprises (SMEs), were open to all companies with a minimum paid-up capital of S$100 million. Importantly, digital wholesale banks cannot take deposits from individuals except for fixed deposits of at least S$250,000, limiting their retail footprint.

Senior Minister and MAS Chairman Tharman Shanmugaratnam framed the initiative as necessary to maintain Singapore's competitive position. "We must allow for greater competition and spur innovation in finance — competition between new and traditional business models, new players and incumbents, and different ways of using technology to serve business and individual customers," he stated at an Association of Banks in Singapore event. The stated objective was to "ensure that Singapore's banking sector continues to be resilient, competitive, and vibrant" while providing "impetus for existing banks to continue enhancing the quality of their digital offerings."

License Awards and Launch in 2022

MAS awarded four digital bank licenses in December 2020, selecting successful applicants from 14 eligible applications that beat out 10 other contenders. The two DFB licenses went to a Grab-Singtel consortium and technology giant Sea Group. The two DWB licenses were awarded to China's Ant Group and a consortium comprising Greenland Financial Holdings, Linklogis Hong Kong, and Beijing Co-operative Equity Investment Fund Management.

All four digital banks commenced operations in 2022. The resulting institutions are GXS Bank (the Grab-Singtel consortium), MariBank (Sea Group), ANEXT Bank (Ant Group), and Green Link Digital Bank (the Greenland-led consortium). The digital banks operate entirely without physical branches, relying on mobile apps and online services for customer engagement.

Number of Licenses (licenses)Source: Orionmano Industries

MAS decided to award only two instead of the maximum three DWB licenses, noting that the digital wholesale banks are being introduced as a pilot. The regulator indicated it would review whether to grant more licenses in the future. The four banks are intended to "thrive alongside the incumbent banks" and "raise the industry's bar in delivering quality financial services, particularly for currently underserved businesses and individuals."

Product Innovation and Ecosystem Integration

The digital banks have leveraged their parent ecosystems to differentiate from traditional incumbents. GXS Bank, backed by Grab's regional ride-hailing and delivery network alongside Singtel's telecommunications infrastructure, offers SMEs digital onboarding, local payment options, and credit lines. Grab merchants gain access to benefits linked directly to the Grab ecosystem, creating a closed-loop value proposition. However, GXS Bank's services remain largely confined to Singapore as of 2025, with limited multi-currency support and no upfront disclosure of exchange rates or overseas transfer fees.

MariBank, operated by Sea Group through its SeaMoney division, targets both consumers and SMEs. Businesses can open an SGD account and access loans, while Shopee sellers — a key part of Sea's e-commerce ecosystem — benefit from faster settlements through platform integration. The Mari Business Account currently lacks multi-currency support and does not offer corporate cards, expense management tools, or online payment acceptance, indicating a deliberately focused initial product scope.

The two DWB license holders focus on corporates and SMEs. ANEXT Bank (Ant Group) and Green Link Digital Bank operate within the wholesale banking space, serving non-retail segments. All four entities operate without physical branches, maintaining purely digital customer interfaces via mobile apps and online platforms.

Competitive Pressure on Incumbents

MAS has explicitly positioned the new digital banks as catalysts for competitive dynamism. The regulator expects them to "provide the impetus for existing banks to continue enhancing the quality of their digital offerings." Existing internet-only banks (IOBs) — subsidiaries of domestic banks and qualifying full banks — now face "stiff competition" from the new entrants, which bring external technology capabilities and large customer bases from their parent ecosystems.

Tharman Shanmugaratnam emphasised that Singapore must embrace digitalisation to avoid "lagging behind its global counterparts." The new digital bank licenses, which represent the "next chapter in Singapore's banking liberalisation journey," are designed to force incumbents to accelerate their own digital transformations. Traditional banks face pressure to improve digital onboarding, credit assessment for SMEs, and ecosystem-based financial services.

MAS believes the digital banks will "further strengthen Singapore's financial sector for the digital economy of the future." The digital wholesale banks, in particular, target underserved SMEs — a segment where traditional banks have historically been cautious due to high transaction costs and limited collateral. As the digital banks scale and integrate deeper with parent ecosystems like Grab, Shopee, Alibaba, and Singtel, incumbents will likely respond through accelerated digital investments or strategic partnerships.

The initial evidence suggests that competitive intensity has risen in retail and SME banking segments. MariBank's integration with Shopee's seller settlement system and GXS Bank's ecosystem benefits for Grab merchants represent product innovations that traditional banks cannot easily replicate. For incumbent banks, the strategic imperative is clear: either match the digital-native user experience and ecosystem integration of the new entrants, or risk losing share in profitable customer segments.

Outlook

As these digital banks scale and integrate deeper with parent ecosystems, incumbent banks will likely accelerate their own digital transformations or seek partnerships, potentially leading to a more fragmented but more innovative banking landscape in Singapore.