Update 6 Dec: Grab-Singtel consortium has been awarded a full digital banking license.

Singtel will hold a 40 percent stake in the consortium that will apply for the bank license in Singapore, while Grab will hold the rest.

The consortium plans to set up a digital bank targeting so-called digital-first consumers, as well as small and medium enterprises that lack access to credit.

Grab has expanded into financial services across Southeast Asia in partnership with 60 financial institutions including Malayan Banking in Malaysia and United Overseas Bank in Singapore.

Singtel, Asia’s leading communications technology group, has been offering its own mobile payments service in cooperation with regional associates, including in Thailand.

“Together with Grab, we have a formidable set of assets and significant synergies to make banking more accessible and deliver much-needed product simplicity, speed and affordability,” Arthur Lang, chief executive officer of Singtel’s International Group, said.