Grab and Singtel are applying for a digital full bank license together.
The companies announced this on Monday in a joint statement.
Grab and Singtel will form a consortium with 60% and 40% respectively.
This will allow the companies to serve retail customers and lend money.
What does this mean?
The ride-hailing business and telco are coming together to serve digital-first customers, and will have a keen focus on SMEs. The Monetary Authority of Singapore has five licenses up for grabs at the moment, with applications closing on Tuesday.