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Author: Ravi Philemon
MatchMove confirms Digital Full Bank License bid, together with strategic partners Singapura Finance, Lightnet & OpenPayd
By: Hitesh Khan/
MatchMove, one of the pioneer Singapore headquartered fintech companies offering a ‘Banking-as-a-Service’ platform, on March 19, confirmed that it has submitted an application for a Digital Full Bank License (“DFBL”) to the Monetary Authority of Singapore (“MAS”). In many ways, MatchMove is already acting like a digital bank.
With the innovative Wallet-as-a-Service platform and the full Spend.Send.Lend suite, MatchMove today manages the end to end process for millions of customer transactions across multiple countries in Asia. Providing full digital banking is a natural evolution of MatchMove’s current capabilities towards a holistic and integrated banking proposition.
Shailesh Naik, Founder and Group CEO of MatchMove commented “At its core, MatchMove aims to improve the quality of people’s digital life by extending essential and safe banking services to them anytime anywhere.”
“Our proposed digital banking-as-a-service will accelerate this objective by leveraging our existing and already available capabilities to address current pent up demand and reach digitally underserved segments like SMEs and gig workers, amongst others. As a pure play fintech, we believe we are well positioned to graduate to a become the digital bank of choice for enterprises, employees and consumers of the future, in Singapore and the region” he added.
The MatchMove led application brings together a world class consortium comprising Singapura Finance Ltd, Lightnet Pte Ltd and OpenPayd Holdings Ltd, all premier regulated financial institutions in their respective markets, with deep capabilities and experience across the spectrum of digital financial services. These partners bring along regional and global connectivity to enhance the proposed Digital Bank’s value proposition.
For Singapura Finance, participating in the DFBL application comes on the back of their close strategic relationship with MatchMove. Singapura Finance is leveraging the MatchMove Banking-as-a-service platform to power its Vivid Card solution and is also a strategic investor in MatchMove. “This strategy complements our existing business and steps up our digitization efforts as well as enables us to diversify into new digital native segments and products” said Jamie Teo, CEO of Singapura Finance.
Lightnet is a next generation clearing and settlement network across the Asia Pacific region with the goal to provide remittance infrastructure services by leveraging blockchain and connecting existing financial systems with its network of cash agents and wallets. Lightnet is targeting the unbanked migrant workers and SME trade finance in South East Asia as its initial customers. Lightnet was co-founded by Chatchaval Jiaravanon, whose family runs the Charoen Pokphand Group, one of Thailand’s largest companies; and former investment banker Tridbodi Arunanondchai.
Commenting on the partnership, Tridbodi Arunanondchai, said, “We are excited to partner with MatchMove which is aligned to our regional banking aspirations. Furthermore, there are many synergies between our organisations beyond Singapore which we intend to explore and I believe we can develop a compelling proposition for the under-banked segment across the region.”
Speaking on behalf of OpenPayd, Iana Dimitrova, Chief Executive said “We’re delighted to partner with MatchMove and expand our global footprint into Asia. This partnership cornered around next-generation digital banking complements perfectly our enterprise Banking-as-a- Service strategy”.
Commenting on the viability of a pure-play digital banking-as-a-service, Shailesh said” “Additionally, as a key element of the proposed Digital Bank’s go-to-market strategy, MatchMove has assembled an ecosystem of fintechs and businesses with ready access to large networks of retail customers and SMEs.
The proposed Digital Bank will provide tailored and relevant banking products and services to these organisations and their employees, to SME clients and to the partners own retail customers. These confirmed ecosystem partners include a leading transport operator in Singapore, SE Asia’ leading insurance company, a regional payments acquirer, two leading tech startups focused on SME services, and Asia’s leading B2B enabler of online stores, amongst others Advanced discussions are underway with several other potential partners.
MatchMove is differentiated by this ability to continue to expand its go-to-market partner base and thus reach more underserved segments quickly“ “This capability will provide the Digital Bank with access to tens of thousands of SME’s and millions of Singaporean consumers with minimal additional customer acquisitions costs, making the MatchMove banking-as-a-service proposition more readily available and at a lower cost than traditional banking, and so provides a clear path to sustainable growth within the first few years of operation.”
“Furthermore, MatchMove’s unique business model and strategy enables it to be deployed across borders, and this is evidenced by strong interest coming in from consortia in other regional countries preparing for banking license application in their own countries. As such, the MatchMove approach will ensure a path to regional growth while further cementing Singapore’s position as a world-class fintech hub.“
In Sep 2019, MatchMove announced that it has closed an agreement with licensed P2P lender, MoolahSense, to acquire a strategic stake with immediate effect. MoolahSense is one of the leading data-driven peer-to-peer lending platforms focused on SME lending, and operates under a Capital Markets Services (CMS) license from the Monetary Authority of Singapore (MAS).
The acquisition enabled MatchMove to further strengthen its Spend.Send.Lend capability and provide access to financing to SMEs within its ecosystem. Consequently, MoolahSense will be able to leverage MatchMove’s integrated regional partner network to tap new segments and extend its capability to fund creditworthy SMEs across Asia.
Access to credit remains a key challenge for SMEs today across the region. While SMEs remain the backbone of the economy, many struggle to achieve scale and optimization, primarily due to lack of credit and funding options from larger, established lenders such as banks. This strategic combination of MatchMove and MoolahSense will directly address this fundamental market demand and facilitate SME development using digital methods of credit evaluation and capital distribution.