Singaporean entrepreneur Min-Liang Tan’s Razer Fintech – the fintech arm of gaming hardware maker Razer – has applied for a Digital Full Bank Licence in Singapore, with a focus on the underserved youth and millennials segment, the company announced on Thursday (Jan 2).
If successful, the firm will build what it calls the “world’s first global youth bank”, named Razer Youth Bank, with plans to progressively expand into a global banking network.
To be headquartered in Singapore, Razer Youth Bank will leverage on Razer’s strong lifestyle brand, its global presence, as well as the existing digital payments platform Razer Fintech already runs, the company said.
Razer Fintech plans to take up a 60 per cent majority stake in Razer Youth Bank, with the remaining equity interest taken up by a consortium of strategic partners including Sheng Siong Holdings, FWD, LinkSure Global, Insignia Ventures Partners and Carro.
In addition, the digital bank will also have partners to create its services and products. These partners so far include working space provider JustCo, Visa, Saxo Markets, SkyScanner and an unnamed airline, among others.
“Addressing the unmet financial needs of the large, yet underserved, segment of the population through an innovative digital-first banking platform is a natural extension of our payments business, Lee Li Meng, Chief Strategy Officer of Razer Inc. and CEO of Razer Fintech, said.
Lee added that Razer Fintech had in the past year already set plans for the new bank in motion, such as by appointing a board of advisors and seeking out new partnerships.
Earlier this week, tech firm Grab and telco Singtel also announced plans to jointly apply for a digital bank licence.
The partnership is aimed at addressing the “unmet and underserved needs” of digital-first consumers and medium-sized enterprises (SMEs), the two companies said.
Other organisations that previously expressed interest in applying for the licence include Standard Chartered Bank, NTUC Enterprise and the V3 Group.
Successful applications will be announced by mid-2020.
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