Southeast Asian ride-hailing company Grab announced that it will form a consortium with Singapore’s largest telecom company, Singtel. So the consortium is to acquire digital banking licenses in Singapore.
Grab Singtel collaboration will hold 60 percent and 40 percent stakes in the consortium, respectively.
Both companies have a blueprint for ‘digital first’ such as high convenience. As well as customized financial services and products through the establishment of digital banking. The company plans to expand the scope of consumers, including small and medium-sized enterprises, by further enhancing access to credit.
Currently, Grab and Singtel are introducing their own financial services such as Dash, VIA, GrabPay, and GrabInsure. The relevant services are customer-centric operations. Offering reasonable prices and high accessibility. It explains that it has finished preparing to build a digital-first banking model through know-how that both companies have.
Grab and Singtel statements
“Grab has launched a variety of financial services, including e-money, loans, and insurance, in Singapore with Southeast Asia’s largest fintech ecosystem over the past two years,” said Ruben Lai, managing director of Grab Financial Group.
Lai said that the collaboration between the two companies is significant. Singtel has secured high trust in Southeast Asia such as Singapore. And it will contribute to the formation of customer wealth and provide more convenient transaction experiences with its enhanced personal customization service.
Arthur Lang, CEO of Singtel International Group added:
“Together with Grab, which has extensive digital expertise and experience in this region, we have a formidable set of assets and significant synergies to make banking more accessible and intuitive, and deliver much-needed product simplicity, speed, and affordability.”
In a statement, Grab and Singtel stated:
“The digital bank will aim to cater to the needs of digital-first customers, who have come to expect greater convenience and personalisation, and small and medium-sized enterprises, which cite lack of access to credit as a key pain point.”
