SEA Group, which owns Shopee and Garena, is also making its foray into the digital banking market with MariBank.
Some pilot programmes have been launched for its Singapore employees, said SEA Group chief corporate officer Yanjun Wang, but offered no details on what these programmes are.
The Monetary Authority of Singapore (MAS) has recommended that digital banks that have received their licences start operations this year. But with 2022 drawing to a close, MariBank could potentially miss the launch target for the public.
CHALLENGING ENVIRONMENT
Non-bank players who received their digital bank licence will need to turn profitable within five years – a requirement set by MAS.
However, this will be challenging in the short term, especially with rising interest rates amid a potentially tough economic outlook, said INSEAD economics professor Antonio Fatas.
“People are not easily willing to change their bank account to somewhere else, because it’s costly, because there’s an issue of trust. So it’s going to be hard for (digital banks) to get the scale,” Prof Fatas said.
“(These banks) need to start with niches where they can convince you that their value proposition is there. But most of the places where (these banks are, such as) here in Singapore and some other countries, typically are places where margins are very low,” he added.
