The fintech arm of gaming company Razer has applied for a virtual banking licence from the Monetary Authority of Singapore, with the aim of creating a full-scale digital bank targeting the millennial market. Razer says it planning to is planning to extend its existing fintech offerings in mobile payments to the digital banking market by building the world’s first 'Global Youth Bank'.
The firm has teamed up with an array of homegrown and Asian companies to funds the project, including Sheng Siong Holdings; FWD; Linksure Global; Insignia Ventures Partners; and Carro. Under the agreements, Razer Fintech would retain a 60% stake in the new bank.
Technology and service partners include Justco, Quantifeed, Saxo Markets, Real Vision, SkyScanner, SoCash, Turnkey Lender, V-Key, and Visa. Razer is the second non-bank to appply for one of five digital banking licences from Singapore's central bank, following a joint application from ride-hailing firm Grab and teclco SingTel. Chinese behemoth Ant Financial today has also filed an application for a wholesale licence to service its corporate clients.
Shares in Razer - which has been building up its financial technology assets over the past year through its existing digital payments networks Razer Merchant Services and e-wallet service Razer Pay - soared on the news, gaining as much as 13.4% on the day as investors warmed to an offering designed to appeal to the company's young base of 70 million users.