OCBC Bank is reportedly in talks with companies to apply for a virtual bank licence in Singapore.
The lender is said to be in discussions with Singapore Telecommunications (Singtel) on the potential partnership or joint venture, reported Bloomberg citing people familiar with the matter.
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If negotiations succeed, OCBC Bank will seek a minority stake in the joint venture, the sources added.
The move is aimed to tap new customers as the global banking industry faces new competition from fintech firms.
The report comes at a time when Singapore is set to invite applications this month for five virtual bank licences.
Currently, the discussions are in preliminary stage as the terms and choice of partner may change based on licencing conditions.
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By GlobalDataOCBC head of digital and innovation Pranav Seth told the publication in an emailed statement: “We are open to forging new partnerships and ventures that allow us to serve new segments and new markets.”
However, he did not confirm any such discussions on a virtual license application.
A Singtel representative also declined to comment on Bloomberg queries.
In June, the Monetary Authority of Singapore (MAS) announced plans to issue up to five digital bank licences.
The plan includes issuing up to two digital full bank licences and three digital wholesale bank licences.
In May this year, Hong Kong granted four virtual banking licences.
