China's Zall Smart Joins Race For Digital Wholesale Banking License In Singapore

Another China fintech company joined the quest for securing a digital wholesale banking license in Singapore. It has been revealed that the company is the 15th on the list opting for the license which would improve the city-state's financial industry. The company is also joined by other consortium partners from Japan and Singapore.

Chinese business-to-business e-commerce company Zall Smart Commerce Group has made a deal to form a group that would apply for a digital wholesale banking license in Singapore, reported Deal Street Asia. The partners of the firm were revealed to be Japan's trading company Marubeni Corp. and Singapore's Global eTrade Services which is a unit of CimsonLogic Pte, an American company.

The report claimed that the group wishes to contribute to Singapore's technological developments who also aims to be a country that functions as a global financial hub for trading services. 

Zall Smart had been widely known as Z-bank in China and has once secured a virtual banking license in the country since 2017. Zall, along with the group, wanted to bid for a digital wholesale banking license along with 14 other groups who have been competing for Singapore's favor.

Among the players are corporate clients of Zall Smart which is Ant Financial, the renowned Jack Ma's company. At present, eight groups have applied for digital full-bank licenses while 14 other groups opted for digital wholesale permits with the Monetary Authority of Singapore this month. 

According to Bloomberg, many groups have announced their applications with Singapore including property giants and Chinese fintech firms.

Consequently, Fintech News Singapore reported that digital banking software provider Backbase has announced the launch of its regional headquarters in Singapore. It was reported that its presence would strengthen its footprint within the country and to gain greater proximity for its Asia Pacific Clients. The company was said to support banks and neo-banks to keep their financial pace and innovate their services with speed by reducing operational costs.  

According to Bankinnovation.net, Singapore has developed into a haven for e-commerce businesses that seek banking opportunities across Asian markets. It was reported that since 2019, the Monetary Authority of Singapore had announced the issuance of three digital wholesale banking licenses and two digital full bank licenses to fintech companies. 

Moreover, it was revealed the regulators have opened for super apps to move into banking urging the fintech firms to create groups and take advantage of the Singaporean market. It was mentioned that one of the companies that attained success thereto is the cab service provider Grab Holdings.