(Alliance News) - Standard Chartered PLC on Monday said its wholly-owned subsidiary SCBSL has created a joint venture with NTUC Enterprise's holding company, BetaPlus, to offer digital banking services in Singapore.
The venture, SC Bank Solutions, will be 60%-owned by SCBSL, with BetaPlus holding the remaining 40%.
SC Bank Solutions was granted a full banking licence in Singapore at the end of 2020.
"This joint venture will focus on providing digital banking services, in line with Singapore's efforts to digitalise its economy," StanChart said.
It added: "SC Bank Solutions will be Standard Chartered's second separately licensed digital bank in Asia, the first being Mox Bank Ltd in Hong Kong, a separate joint venture with a wholly owned subsidiary of PCCW Ltd, a wholly owned subsidiary of HKT Ltd and a wholly owned subsidiary of Ctrip.com International Ltd."
SCBSL will contribute SGD144 million, about USD107 million, to help set up the venture, while BetaPlus will chip in SGD96 million.
"The establishment of a digitally led bank in Singapore is an important part of Standard Chartered's overall digital strategy. Whilst it is not expected to provide a meaningful earnings contribution in the near term, it has the potential to create value over the medium term," StanChart added.
Shares in Standard Chartered were 1.7% higher in London on Monday at 461.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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