Razer Fintech has submitted its application for a Singapore digital banking license, leading another noteworthy consortium bid following Grab-Singtel’s announcement earlier this week. The company is the financial arm of gaming hardware powerhouse Razer Inc. that went for an IPO in Hong Kong in 2017.
In a press statement, Razer Fintech said it will build the world’s first global youth bank to focus on the underserved youth and millennials segment. If successful, the company will acquire a 60% majority stake in a consortium of strategic partners, who will take up the remaining equity interest in the upcoming Razer Youth Bank. Its partners include notable names like Sheng Siong Holdings, Insignia Ventures Partner, and Carro, among others.
Razer Youth Bank will focus on creating an open banking platform for multiple partners to access the underserved youth and millennial segment, providing a “hyper-personalised” fun and engaging banking experience. As part of its offerings, Razer Youth Bank will also support entrepreneurs and small and micro enterprises who want access to much-needed capital for growth.
Lee Li Meng, chief strategy officer of Razer Inc. and CEO of Razer Fintech, said this is a “natural extension” of the payments business. “As a truly Singapore homegrown and global tech unicorn, we hope to be able to contribute to the growth of Singapore as a global financial centre to deliver a new-age and clearly differentiated digital banking proposition for Singaporeans and youth and millennials globally,” he said.
According to the guidelines issued by the Monetary Authority of Singapore, the announcement of the digital banking licenses is expected to be in mid-2020. MAS will issue up to two digital full bank (DFB) licenses and three digital wholesale bank (DWB) licenses as part of Singapore’s push for the further liberalization of its banking sector.
