News Article

iFAST eyeing online banking license in Singapore

iFAST's service scope expanding to include lending and e-payment.

According to a study from DBS Research, iFAST is in discussions with prospective customers to seek a digital banking license in Singapore.

If the change demonstrates effective, iFAST, which provides equity products and facilities to financial advisory companies, companies, MNCs, wholesale and high-net-worth customers, could extend its range of facilities to include credit and cash management capacities across five industries, including Singapore, Hong Kong, Malaysia, China and India.

T]he embedded property leadership system of the group would be further improved with five main item types–savings units, ETFs, securities, shares and healthcare,” said researcher Lee Keng Ling, who recognised businesses such as billing firms and e-commerce competitors as prospective customers.

iFAST may put up a distinct company in search of its digital banking aspirations so as not to dilute its present interest. The company is also expected to start a fund-raising exercise to raise the initial $100 m capital requirement. The CAPEX is expected to be less than its current CAPEX of approximately $10-11 m per year for this new section.

The digital banking license may be what iFAST requires to maintain its development after a year-ago drop in profit by 17 per cent. The Chinese business of the firm also booked a loss of $1.22 m in Q2 from $1.05 m in 2018 in the same era.

Earlier, the Singapore Monetary Authority announced it would issue up to two complete digital banking permits and three commercial permits as a portion of an attempt to liberalise the long-held, local lenders-dominated economic utility industry.

Hong Kong previously awarded several eight digital banking permits to companies in a comparable step, including organisations supported by tech giants such as Tencent and Ant Financial, as well as incumbent lenders such as Standard Chartered and Bank of China.

Digital companies are susceptible to an original transaction limit of $50 million, an external depositor limit of $75,000, and usually permitted to recognise payments from only a tiny number of depositors such as company associates, employees, associated groups and chosen clients. Moody’s reports that, once they fully satisfy legislative demands and become fully functional, digital companies will control about 2 per cent of national banking system resources.

CIMB Bank - Best exchange rate SG > MY

Login to your account below

Fill the forms bellow to register

Retrieve your password

Please enter your username or email address to reset your password.