eSports

Razer Applies for Singaporean Banking License, Appoints New CFO and CIO

  • Razer’s financial technology arm Razer Fintech applied for a digital full bank license with the Monetary Authority of Singapore to establish the Razer Youth Bank. 
  • Razer Fintech will take a 60% majority stake in the consortium, which also includes strategic partners such as Sheng Siong Holdings, FWD, Linksure Global, Insignia Ventures Partners, and Carro.
  • Razer appointed Chong Neng Tan as chief financial officer and Edwin Thiong Joo Chan as chief investment officer on Jan. 1.

Razer Fintech, the financial technology arm of Singapore-based gamer lifestyle brand Razer, announced it has submitted an application to be issued a digital full bank license as a part of a consortium by the Monetary Authority of Singapore (MAS) to establish the Razer Youth Bank.

The digital full bank license is a new concept introduced by the MAS in June 2019 as part of “Singapore’s banking liberalization journey to ensure that its banking sector continues to be resilient and competitive” throughout the ongoing digitalization of banking. The financial regulatory authority will issue up to two full digital bank licenses in the inaugural application round ended on Dec. 31, 2019. With its application to become one of the first digital full banks, Razer Fintech is looking to leverage its existing youth and millennials client base to extend its fintech offering to digital banking services.

As part of its offerings, Razer Youth Bank plans to create a financial well-being companion for the youth and also intends to serve the needs of entrepreneurs as well as small and micro enterprises that have had challenges to gain access to capital to fund growth and digital transformation strategies.

“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,” said Lee Li Meng, chief strategy officer (CSO) of Razer and CEO of Razer Fintech, in a release. “As a truly Singapore homegrown and global tech unicorn, we hope to be able to contribute to the growth of Singapore as a global financial center to deliver a new-age and clearly differentiated digital banking proposition for Singaporeans and youth and millennials globally.”

Led by Razer Fintech, which will take up a 60% majority stake, Razer has assembled a consortium of strategic partners who will take up the remaining equity interest in Razer Youth Bank. Strategic partners include private investment vehicle Sheng Siong Holdings, Pacific Century Group’s insurance business FWD, internet company Linksure Global, technology venture fund Insignia Ventures Partners, and vehicle wholesale marketplace Carro.

In connection with its application, Razer Fintech has also gathered an array of service providers as well as product and technology platform partners to provide services to Razer Youth Bank, including Justco, Quantifeed, Saxo Markets, Real Vision, SkyScanner, SoCash, Turnkey Lender, V-Key, and Visa.

The MAS has received seven applications for the digital full bank (DFB) licenses as of its Dec. 31, 2019, deadline from applicants including e-commerce firms, technology and telecommunications companies, FinTechs (such as crowd-funding platforms and payment services providers), and financial institutions.

Applications will be evaluated based on their “value propositions, including the innovative use of technology to serve customer needs, their ability to manage a prudent and sustainable digital banking business, and their contributions to Singapore’s financial center”. Successful applicants will be announced in June and are expected to commence business by mid-2021.

On a related note, Razer announced the appointment of Chong Neng Tan as chief financial officer (CFO) and Edwin Thiong Joo Chan as chief investment officer (CIO) on Jan. 1.

Source: Read Full Article