Singapore seeks to be Southeast Asia's virtual bank and fintech hub

It seeks to tap into a digital channels market which could be worth $110b by 2025.

Singapore is aiming to become the regional hub for digital banking firms and financial technology companies, shared Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), in an interview with Bloomberg.

“Singapore wants to be a base for these players as they grow in the region, and that means anchoring them here at the early stage of their development, and allowing them access to the domestic banking market,” Menon said.

He further noted that the Lion City’s fintech hub ambitions would also benefit the rest of Southeast Asia, as MAS hopes that achieving hub status would also improve banking services not just locally but also for the rest of the region.

SEA presents a great opportunity for virtual banks to cash in, with the market for digital channels expected to quadruple to $110b by 2025, according to a report by Bain & Co., Google, and Temasek.

Central to MAS’ fintech hub ambitions is its announcement in June to award as many as five digital banking license to non-banks, three slots of which are open for foreign firms.

Menon said he expects non-financial firms to work with traditional banks through joint venture and other combinations.

Here’s more from Bloomberg.