Digital banks are revolutionizing the banking industry by providing innovative and convenient solutions for customers. Green Link Digital Bank (GLDB) is the first digital bank to launch in Singapore, offering banking and financial services to micro, small and medium-sized enterprises (MSMEs).
With a digital wholesale bank license acquired from the Monetary Authority of Singapore in December 2021, GLDB says it is committed to providing quality services and products that meet the needs of MSMEs. According to analysts, the launch of GLDB marks an important milestone in developing the digital banking industry in Singapore.
“We aspire to be one of the key contributors towards digital economy advancements in Singapore and hope to play a significant role in cultivating an open digital finance ecosystem in Singapore,” said GLDB chairman Geng Jing.
GLDB began operations on Friday, June 3rd, with an initial focus on providing financing to MSMEs. It plans to expand its service coverage and product offerings in the future to better serve the needs of businesses in Singapore. These include supply chain financing products and services for high-growth potential industries.
Greenland Financial and its subsidiary Greenland Digital Technology will provide financial technology and digital innovation support, while Linklogis will offer supply chain finance technology support.
“We will continue to explore the application of advanced technologies such as AI (artificial intelligence), blockchain, cloud computing, and Big Data in supply chain finance, incorporate environmental, social, and governance factors into our product development and growth strategies, and create a digital banking industry benchmark,” said Vice-chairman Song Qun.
In a previous report, Moody’s Investors Service analysts said that the rise of digital banks in ASEAN is a welcome development that will promote financial inclusion in the region. However, they are concerned about the profitability and credit risk of these banks.
The business model of most digital banks in Southeast Asia has yet to be tested across credit cycles, and the profitability of underwriting the unbanked and underserved sector is unknown.
McKinsey said that digital banking in other Asian countries such as China, South Korea, and Taiwan are backed by well-established tech companies. Analysts from the consulting firm said that applicants for digital banking licenses must have an outstanding proposition and the strategic, operational, and financial resources to operate in a dynamic banking environment.