First Article of 2021 - The Replacement of OCBC Bank is Singtel
This is a continuation of the previous post.
The replacement of OCBC is Singtel.
The joke is on me. Many months ago, for those that asked me about Singtel, I will tell them I do not like it. The main issue is cash burn in the future and the “traditional” management. But recently a friend changes my thinking and it kept me thinking on all the future possibilities.
Basically, in my opinion, the opportunities exceed its own weaknesses.
Thus, let me get into the reasons.
1. Digital Banking
Grab-Singtel JV (GSJV) has been awarded for the full digital banking license. Singtel has a 40% stake in the S$1.5bn entity (around at least S$600million outlay from Singtel).
Recently, I have a deep discussion on the Fundamental Scorecard Telegram Group on Digital Banking. Basically, I commented that Google Pay as an aggregator will be a major competitor against Digital Banking – and there were a lot of explanations stating that this is a wrong.
Part of the conversation as showed above (Many Gurus are in my Telegram group, if you are interested in joining, google Fundamental Scorecard Telegram Group and join us!)
So – as explained above, I should not mixed Digital banking and payments together. In fact, additional payments aggregator could be an advantage to digital banking. While payment is only 1 aspect of digital banking, there are many other aspects such as eWallets, insurance, lending and investing that can be explored further.
As explained by the CEO of GSJV in this article, “…Customers from multiple segments, including the underserved and underbanked, will be able to have their financial needs met seamlessly, powered by our next generation cloud technology and data platform.”
All in all, an ex-colleague once told me this, “We don’t know what we don’t know”, and I shall use this sentence to explain the potential of digital banking.
2 years ago, Cashless was still such an ambitious project in Singapore. Look at where we are now.
How about eWallets with interest to be earned? Will there be a consolidation of Cash from different eWallets going into the GSJV account?