Standard Chartered said that its subsidiary SCBSL and BetaPlus, a holding company controlled by Singapore-based NTUC Enterprise, have signed a shareholders’ agreement pertaining to their joint venture (JV) — SC Bank Solutions.

Under the terms of the agreement, SCBSL will hold a stake of 60% in SC Bank Solutions, while BetaPlus will hold the remaining 40% stake.

SC Bank Solutions, which was given a full banking licence by the Monetary Authority of Singapore (MAS) in December 2020, will be engaged in offering digital banking services.

It will be the second separately licensed digital bank of Standard Chartered in Asia. The first was Mox Bank Limited in Hong Kong, which is a separate joint venture with a fully-owned subsidiary of PCCW.

SCBSL will contribute S$144 million to the joint venture, of which S$90 million will be made available prior to the completion. BetaPlus, on the other hand, will contribute S$96 million.

The funds will be used for developing the business of SC Bank Solutions in agreement with the agreed business plan.

Standard Chartered stated: “The establishment of a digitally led bank in Singapore is an important part of Standard Chartered’s overall digital strategy. Whilst it is not expected to provide a meaningful earnings contribution in the near term, it has the potential to create value over the medium term.”

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