While the deposit cap during the lenders’ first two years of operation is meant to safeguard consumers’ interests, the new entrants see the restriction — that has meant applications for their savings accounts are by-invite only — as curbing their lending ability. Time is also ticking for these digibanks owned by non-financial firms to boost scale, given they had to show a path towards profitability within five years during their application process.
Singapore’s new digital banks backed by Grab Holdings and Sea are pushing the country’s central bank to lift a cap on deposits that they see as hamstringing their growth.
Both banks are approaching the $50 million limit and have been lobbying the Monetary Authority of Singapore to review its stance, according to people with knowledge of the matter. They expect to hear an update on this issue soon, the people said, asking not to be identified as the discussions are confidential.
