Everything You Need to Know About Digital Banks in Singapore

As Singapore continues to establish itself as a global financial hub, digital banks are becoming an increasingly popular choice for SMEs, small business owners, entrepreneurs, and individuals looking to register a company. These banks offer a modern, convenient, and often more cost-effective alternative to traditional banking.

In this blog post, we will explore how digital banks operate in Singapore, the services they offer, their safety measures, and the innovative features that set them apart.

How Digital Banks Operate in Singapore

Licensing and Regulation: Digital banks in Singapore are regulated by the Monetary Authority of Singapore (MAS). In 2020, MAS granted licences to four digital banks: GXS Bank, MariBank, ANEXT Bank, and Green Link Digital Bank. These licences are divided into:

• Digital Full Bank (DFB) Licences: Serving retail customers.
• Digital Wholesale Bank (DWB) Licences: Catering to SMEs and other non-retail segments.

Basic Services Offered by Digital Banks

1. Deposits and Savings Accounts: Often with higher interest rates and lower fees compared to traditional banks.

2. Loans and Credit Cards: Available to both retail and business customers.

3. Accessibility: Digital banks provide 24/7 access via mobile apps and online platforms, allowing customers to manage their accounts, transfer money, and pay bills anytime and anywhere.

✅ Counto is dedicated to helping small businesses thrive by offering Counto BillPay, a complimentary all-in-one solution for bill payments, spend management, and accounts payable. Learn more here.

Safety of Digital Banks in Singapore

1. Regulatory Compliance: Digital banks are subject to the same stringent regulations as traditional banks, ensuring high standards of security and operational integrity. The MAS’s technological risk management rules are among the most comprehensive globally.

2. Security Measures:

• Encryption and Secure Authentication: Ensuring that all transactions and data exchanges are secure.
• Fraud Detection Systems: Monitoring for suspicious activities and potential scams.
• Customer Protection Features: Some banks offer features like “money lock,” which allows customers to block part of their savings from digital transactions.

3. Consumer Trust: While digital banks face challenges in building trust among consumers accustomed to traditional banking, the transparency and regulatory oversight provided by MAS help build consumer confidence.

Innovative Features of Digital Banks in Singapore

1. Advanced Financial Management Tools: Digital banks provide spending monitors, budgeting tools, etc to help users manage their finances more effectively.

2. Fast and Simple Account Opening: Quick online account opening procedures without needing to visit a physical branch.

3. Lower Fees: Due to reduced administrative costs, digital banks often charge lower fees than traditional banks.

4. SME-Focused Services: Digital wholesale banks provide specialised services for small and medium-sized enterprises, including tailored loan offerings and credit cards.

5. Personalised Offerings: Use of data analytics and AI to provide more personalised services and products tailored to individual customer needs.

6. High-Interest Savings Accounts: Some digital banks offer no-minimum, high-interest savings accounts.

7. SME-Focused Services: Digital wholesale banks provide specialised services for small and medium-sized enterprises, including flexible client classification and tailored loan offerings.

Examples of Digital Banks in Singapore

1. GCS Bank

• Services: High-interest savings accounts, innovative “Savings Pockets” feature, personalised financial tools.
• Ideal For: Individuals and SMEs looking for advanced savings and money management features.

2. MariBank

• Services: Zero banking fees, high interest rates, seamless integration with Shopee for e-commerce businesses.
• Ideal For: E-commerce businesses and individuals seeking high interest and low fees.

3. ANEXT Bank

• Services: Specialised loans and credit products for SMEs, tailored financial solutions.
• Ideal For: SMEs requiring specialised financing and credit options.

4. Green Link Digital Bank (GLDB)

• Services: Multi-currency accounts, advanced supply chain financing, competitive loan interest rates.
• Ideal For: Businesses looking for modern, flexible, and technologically advanced banking solutions.

Summary

Digital banks are transforming the financial landscape with their modern, user-friendly, and cost-effective solutions. They offer numerous benefits over traditional banks, such as higher interest rates, lower fees, and innovative financial management tools. By understanding how these banks operate, the services they offer, and the safety measures they employ, entrepreneurs can make informed decisions when they are setting up a business in Singapore. 

Using an incorporation service as an extension of your team

Setting up a company in Singapore can be challenging, but with professional support, it can be simple, Counto’s mission is to support your new business, take away the complexities of compliance, and save you time and money throughout the year. Speak to us directly on our chatbot, email us at [email protected], or contact us using this form.

Here are some articles you might find helpful:

Airwallex vs Aspire 

Business licences and permits

Cashback credit cards

SSIC codes

Do I need to register for GST?