Losses threaten Razer and Grab's digital banking license bids

MAS is putting emphasis on profitability more than other regulators for the license requirements.

Grab Holdings Inc. and gaming company Razer Inc. will need to demonstrate how their millions of users can help them generate profits if the two technology firms are to win one of Singapore’s coveted virtual banking licenses.

The Monetary Authority of Singapore (MAS) is said to be putting more emphasis on profitability and strong capital requirements than some other regulators inviting fintech firms into banking.

That’s a particular challenge for Grab and Razer, two of the highest profile technology firms interested in the licenses. Razer and Grab’s Singapore ride-hailing unit have consistently reported losses in recent years.

In its guidelines, the MAS said financial projections that show a consistent or increasing trend in net losses won’t meet its requirement of demonstrating “a path to profitability.”

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