Singaporean telecom giant Singtel is inking a partnership with Singapore-based tech company Grab to apply for a digital banking license to offer various digital banking services, Bloomberg reported.
The two companies will form a consortium, which Grab will own 60% and Singtel will hold 40%. The consortium will apply for the bank license in the Southeast Asian country in order to set up a digital bank to target “digital-first” consumers and small and medium-sized enterprises that need access to credit.
Grab is a company that operates a ride-hailing platform that offers car booking service. It also provides food delivery and digital payments services via a mobile app.
"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," Reuben Lai, senior managing director at Grab Financial Group, said in a statement.
On Monday morning, share prices of Singtel rose 0.89%.
