Singapore’s 4 Digital Banks: Licences and Who They Are

Managing your money and making transactions, whether big or small, has never been easier, thanks to digital banking. No more queues, no more branch visits; everything can be handled online, from opening a bank account to applying for cards and loans.

As a leading hub for technology and finance, Singapore is seeing rapid growth in the digital financial sector. Traditional banks are offering more online services, while new fintech companies and digital banks are entering the market. And in 2020, the Monetary Authority of Singapore (MAS) issued licences to 4 new digital banks, marking a major step forward in financial innovation.

In this article, we’ll explore what these licences mean and introduce you to the digital banks in Singapore. Learn about their key services and how they benefit businesses to ensure you know the choices available to you.

A digital bank, or online bank, is a financial institution that operates entirely online without physical branches. Users can access a full banking experience, including opening bank accounts, making transfers, applying for loans or cards, and contacting customer support through digital platforms like mobile apps or websites.

This is particularly convenient for entrepreneurs, start-ups, and new businesses, as it allows them to manage their finances at any time without needing to visit a branch during bank operating hours. Digital banks also typically offer competitive pricing and charge lower account maintenance and transaction fees compared to traditional banks. 

To make the city-state’s banking sector diverse and adaptable in the evolving digital financial ecosystem, the Monetary Authority of Singapore (MAS) issued two digital bank licences at the end of 2020: 

• Digital Full Bank (DFB): These banks can take deposits from and provide banking services to corporate and retail customers, offering a full suite of banking services. GXS Bank and MariBank are DFBs.
• Digital Wholesale Bank (DWB): These banks primarily serve SMEs and corporate clients but cannot serve individual customers. In Singapore, the two DWBs are ANEXT Bank and Green Link Digital Bank.

In addition to these licences, Singapore also has other digital banks, such as Trust Bank (backed by Standard Chartered and FairPrice Group), which operate under different regulatory frameworks. So, it’s important to note that the four banks granted digital bank licences are not the only digital banks in Singapore.

How Were the Digital Bank Licences Granted?

MAS introduced the digital bank framework in June 2019, aiming to allow eligible non-bank institutions to enter the market and offer banking services. Out of the 14 applications, 4 were granted the licences, following criteria such as:

• The business model’s ability to meet underserved needs through innovative use of technology
• The ability to manage a sustainable digital banking business
• The growth prospects and other contributions to Singapore’s financial centre
• A proven track record and commitment to risk management, capital adequacy, and customer service

MFA is currently not granting new digital bank licences in 2024. 

Now that you have an idea of the new digital bank licences in Singapore, let’s get to know the 4 digital banks operating under those licences.

GXS Bank is a digital full bank operated by Grab Holdings Inc., a food delivery, transportation,  and digital payments platform, and Singtel, Singapore’s telecommunications conglomerate. While the bank has its own application, users can also access GXS from their Grab and Singtel apps.

Deposits made to GXS Bank in Singaporean dollars are insured for up to SGD 100,000 by the Singaporean Deposit Insurance Corporation.

GXS Bank Key Services

GXS Bank focuses primarily on personal banking services, offering products exclusively for individual customers. It often offers lifestyle promotions through partnerships with Grab and Singtel. Here are some of the services they offer:

• GXS Savings Account: A savings account offering daily interest and unlimited cashback with the GXS Debit Card, with an interest rate of up to 2.38% p.a. on the main account. There are no minimum balance requirements and no monthly fees.
• GXS Biz Account: Available for Beta users, this is an account for ACRA-registered sole proprietors in Singapore. 
• GXS Debit Card: A Mastercard® debit card with no foreign transaction fees and instant rewards on eligible transactions.
• GXS FlexiCard: A no-interest credit card with a credit limit of SGD 500 and no minimum income requirement.
• GXS FlexiLoan: A personal loan with low interest rates from 2.99% p.a. (EIR 5.65% p.a.).

Eligibility Requirements

To open an account with GXS Bank, you must:

• Be at least 16 years old.
• Be a Singapore citizen, a Singapore Permanent Resident, or have a valid visa, such as a Dependant’s Pass (DP) or Employment Pass (EP)
• Have a residential address in Singapore
• Have a Singpass

MariBank is a subsidiary of Sea Limited, a Singapore-based consumer internet company. As a digital full bank, MariBank offers hassle-free online banking services to both personal and business customers and safeguards deposits of up to SGD 100,000 under the Deposit Insurance Scheme.

The bank was awarded New Virtual Bank of the Year (Singapore) at the Asian Banking and Finance Retail Banking Awards 2024. Since it operates entirely online, MariBank offers 24/7 customer support through in-app live chat, hotline, and email. 

MariBank Key Services

MariBank offers a wide range of personal and SME banking products, including the following:

• Mari Savings Account: An account that yields a prevailing base rate of 2.50% p.a., credited daily. 
• Mari Business Account: An account for registered sole proprietors, private limited companies, partnerships, and limited liability partnerships that has no local transfer fees and yields 2.5% p.a. interest. 
• Mari Invest: Designed for low-risk investment, Mari Invest allows users to grow their money with a return rate of up to 3.57% p.a. 
• Mari Business Loan: Access funds with a monthly interest rate from 0.5% and a credit limit ranging from SGD 1,000 to SGD 200,000. 
• Mari Credit Card: A personal credit card with rewards such as Shopee Coins, 3% unlimited cashback on overseas card spend, and 1.7% unlimited cashback on local card spend.

Eligibility Requirements

MariBank’s products and services are available to those who are 16 or above and are Singaporean citizens, permanent residents, or foreigners with valid passes. To apply for a Mari Business Account, the business must be registered in Singapore, and all owners, directors, partners, and major shareholders must be Singaporeans or permanent residents.

ANEXT Bank is a wholly-owned subsidiary of Singapore-headquartered Ant International. It is licensed and regulated as a digital wholesale bank, offering banking products designed exclusively to meet the financial needs of SMEs.

With a focus on enhancing financial inclusion, the bank provides a range of services, such as lending and payment solutions, helping SMEs streamline and digitalise their operations. 

ANEXT Bank Key Services

ANEXT Bank only offers financial products to business customers, with the key services include:

• ANEXT Business Account: A free multi-currency account that can hold SGD, USD, and CNH and support international payments in CNH, EUR, GBP, HKD, JPY, KRW, MYR, THB, and USD. 
• ANEXT Business Loan: Up to SGD 500,000 loans for startups and SMEs with 2 repayment options: Pay-Per-Use or Pay Monthly.
• ANEXT Fixed Deposit: A fixed deposit account that allows users to grow SGD and USD business funds, with placements as short as 1 month. 

Eligibility Requirements

Sole proprietorships, limited liability partnerships, limited partnerships, partnerships, and private limited companies can apply for an ANEXT Business Account. Foreigners who are not Singapore citizens or permanent residents can apply on behalf of the company as long as it is incorporated in Singapore and has an active Corppass account.

Green Link Digital Bank (GLDB) is a fully owned subsidiary of Greenland Group, a Chinese real estate developer company backed by the Shanghai Government. It is an MSA-regulated digital wholesale bank offering various types of bank accounts to business customers, mainly Micro, Small, and Medium-sized Enterprises (MSMEs). 

Unlike traditional banks, GLDB adopts a unique strategy that avoids limiting its clientele based on revenue size.

Green Link Digital Bank Key Services

Green Link Digital Bank offers a range of financial services to support businesses of all sizes, including but not limited to the following:

• Current Account: An SGD or USD business current account that supports different types of payments and collections and enables you to earn credit interest without any minimum balance fee. 
• Multi-Currency Account: An account that works like a current account but with multiple sub-accounts supporting SGD and USD.
• Fixed Deposit Account: A fixed deposit account in SGD or USD in tenors of 6 months, 9 months, 12 months, and 18 months. 
• Payment Solutions: Support scheduled payments, MEPS (real-time gross settlement system for high-value SGD interbank funds transfers), and overseas fund transfers (same-currency and cross-currency). 
• Supply Chain Finance: A funding solution that helps businesses to optimise their working capital and manage cash flow up to 100% of the invoice value.
• GLDB Overdrafts: A short-term reserve financing solution to access cash for business growth and expansion. 

Eligibility Requirements

Any business owner or corporate customer can apply for a GLDB account online on behalf of their Singapore-registered company. 

Singaporeans can expect to see many changes in how they access banking services as these new banks enter the market.

Some of the major changes include:

1. Accessing multiple bank accounts through mobile apps rather than visiting physical branches;
2. A greater number of products available from each bank;
3. The banks offer more competitive interest rates;
4. Better customer service and more personalised experience;
5. Lower fees charged by the banks;
6. Faster transactions.

Moreover, Small and Medium Enterprises (SMEs) can benefit from digital banks through lower operational costs, as these banks typically charge fewer fees than traditional banks or sometimes none at all. Additionally, digital banks often do not require a minimum balance, making them more accessible to startups and growing businesses.

Digital banks also often offer innovative tools, like real-time payment system and expense tracting, which simplify financial management for small businesses.

Although digital banks in Singapore offer many benefits, including lower fees, greater convenience, and accessibility to banking, there are some factors that may make it not suitable for everyone. 

Individuals and businesses considering digital banks should be aware of potential limitations, such as:

1. Lack of physical branches and ATMs: Digital banks in Singapore typically do not offer ATM networks or physical branches, which can make cash transactions, such as deposits or withdrawals, less convenient
2. Technology reliance: Digital banks rely heavily on technology and internet access.
3. Brand recognition: New digital banks might not be as well-known as established banks.

To balance the drawbacks, consider having multiple bank accounts with both digital and traditional banks. For example, a digital bank account can help reduce costs, while a traditional bank account ensures access to cash transactions. 

The introduction of digital bank licences reflects Singapore’s commitment to stay at the forefront of financial innovation, underscoring its position as a leading hub of innovation in Asia. These new digital banks are transforming the financial sector, offering convenient access to banking services to a broader range of individuals and businesses.

If you're seeking a virtual business account to streamline global operations or are considering doing business in Singapore, Statrys could be your solution. Statrys is a Hong Kong-based payment service provider offering a range of products tailored to help international SMEs expand into Asian markets, including multi-currency business accounts and company incorporation services in both Singapore and Hong Kong.