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26 Dec 2019  (812 Views) 
Transport Operators

Grab to apply for digital banking license?

I saw a report that Grab is applying for a digital banking license in Singapore. I am not able to verify the authenticity of this report.

Assuming that it is true, what are the services that Grab intends to provide to their customers?

They have an advantage in that Grab has a large customer base that has deposited money in their e-wallets for Grab rides. If not, they have the credit card numbers of their customers and use it for making payments.

What other services can Grab provide, under the digital bank license?

I believe that they will encourage their customers to deposit a larger sum with them, and earn interest that is higher than that offered by the bank on short term deposits. If the interest rate is 1% p.a., it would be attractive to customers.

Perhaps Grab can also offer consumer loans?

Maybe, with a banking license, Grab can go out and enrol merchants for digital payments, similar to AliPay and WeChat Pay.

Any views?

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