Gaming company Razer has partnered with Singapore’s entrepreneurs and Asian billionaires in order to apply for a full digital banking license. It has setup a new financial technology unit in the company named Razer Fintech.
As per the statement from the company, in Razer Fintech, the gaming company will own 60 percent stake while five other partners will hold remaining 40 percent stake. The other partners include Sheng Siong Holdings Pte, FWD Group, LinkSure Global Holdings Ltd., Insignia Ventures Partners, and Carro.
This marks the second application submitted for the digital full banking license after Grab and Singtel jointly applied for the same a couple of days ago. The Monetary Authority of Singapore is set to announce the winners of five digital banking licenses in mid-2020.
Razer Fintech is planning to target the youth and millennial segment in Singapore instead of fighting local banks. However, it eventually aims to roll out globally as Razer Youth Bank, making it the first bank of its kind.
The company will be leveraging its large and young fan base along with its existing digital payments networks Razer Merchant Services and e-wallet service Razer Pay. Although the company is based in Singapore and USA, it has retail stores in places like London, Las Vegas, Hong Kong and Taipei, and is now looking for global presence.
Razer Fintech was formed as a separate entity in April 2018 and since then, the company has built a large digital payment network in Southeast Asia and claims to have processed more than billions of dollars in total payment value.
In a bid to liberalize Singapore’s banking sector, Monetary Authority of Singapore’s (MAS) had announced in June that it will issue up to two digital full bank licenses and three digital wholesale bank licenses.
While two consortium have applied for the license, other organisations that have expressed interest in applying for the digital full bank licence include Standard Chartered Bank, NTUC Enterprise, and the V3 Group.