Digital Banks vs Traditional Banks in Singapore: How Do They Compare?

Not long ago, opening a bank account in Singapore meant walking into a bank branch around the corner. Today, you have more options than ever— and digital banks are one of them.

Digital banks have given consumers and businesses a genuine alternative, with lower fees and fully app-based banking. But how do they really stack up?

If you are running a business in Singapore and considering whether to open an account with a digital bank or a traditional one, this guide breaks down the key differences. From account opening and fees to product range and customer support — so you can make the right call for your business.

A digital bank is a bank that delivers financial services entirely through mobile apps and online platforms, with no physical branches. In Singapore, digital banks operate under licences issued by the Monetary Authority of Singapore (MAS), introduced to drive innovation and expand access to banking for consumers and SMEs.

There are 5 digital banks in Singapore: GXS Bank, Trust Bank, MariBank, Green Link Digital Bank, and ANEXT Bank.

GXS Bank, Trust Bank and MariBank are covered by the Singapore Deposit Insurance Scheme (SDIC) up to SGD 100,000 per depositor.

A traditional bank is a bank that delivers financial services through a combination of physical branches, ATMs, and digital platforms. In Singapore, established banks, such as DBS, OCBC, and UOB, have long served individuals, businesses, and institutions, offering a broad range of financial products under MAS regulation.

Both traditional and digital banks are licensed banks regulated by MAS, but how do they compare?

The table below summarises the main differences between digital and traditional banks in Singapore.

Below is a closer look at how digital and traditional banks differ across these factors.

Opening a digital bank account is done entirely on your phone. Submit your NRIC or passport via Singpass MyInfo, and your account is typically ready within one business day — no branch visits, no paperwork required.

Traditional banks have streamlined online account opening too, though business accounts may still require a branch visit or physical documentation.

For entrepreneurs managing multiple priorities, the fully digital process that digital banks offer can save meaningful time.

Digital banks typically pay interest on your everyday business account balance. ANEXT Bank and MariBank, for instance, offer around 1% interest on idle funds with no fixed tenure required. This means your working capital earns a return without being locked away.

While traditional banks also offer interest-bearing business accounts, the rates tend to be much lower. To earn better returns, you typically need to move funds into a fixed deposit, which locks your money away for a set tenure — a condition worth considering if you need to keep funds accessible for day-to-day operations.

Digital banks tend to charge less for everyday banking. Most offer free local transfers, lower international transfers and do not charge monthly account fees, making them a straightforward option if you want to keep costs down.

Traditional banks may charge for account maintenance and services like international payments or cheque processing. Some of these fees can be waived if you maintain a minimum balance, but that is not always practical for everyone.

For individuals with simple banking needs, a digital bank account can reduce annual banking costs. For businesses with more complex requirements, reviewing the full fee schedule before deciding is advisable.

Traditional banks offer a much wider range of products. Beyond savings and current accounts, you can access home loans, personal loans, credit cards, investments, and insurance, and for businesses, trade finance and payroll services — all in one place.

Digital banks keep things simpler. Most focus on savings accounts, payments, and basic lending. This suits many individuals who already use separate services for investing or insurance. But if you need a mortgage, a wealth management account, or business financing, digital banks are not yet a full replacement.

That said, digital banks are steadily expanding their offerings. The gap that exists today may look quite different in a few years, so it is worth keeping an eye on as the market develops.

Digital banks are available around the clock through their mobile apps. As long as you have your phone and an internet connection, you can check balances, transfer money, and manage your account at any time.

Traditional banks offer more ways to access your account — branches, ATMs, phone banking, and digital platforms. If you ever need to handle something in person, that option is there.

For everyday transactions, a mobile app is sufficient for most users, though those who occasionally require in-person assistance will find traditional banks more suited.

Digital banks offer customer support via in-app chat and email 24/7. This can be useful if you travel frequently or prefer not to be tied to branch hours.

The one real trade-off is that complex issues like payment disputes could take longer to resolve remotely, since there's no branch you can walk into to push things forward.

Traditional banks offer the same digital and phone support channels, but with the added option of walking into a branch when needed. For businesses managing high-value transactions or time-sensitive issues, having a relationship manager as a direct point of contact can make a meaningful difference when something goes wrong.

The answer depends on what you need from a bank.

Digital banks tend to suit you better if:

• You want a lean, low-cost account for day-to-day business payments with no monthly fees.
• You are an entrepreneur or freelancer looking for a quick, hassle-free account setup.
• You want to earn more interest on your cash.
• You are an SME or solo founder who manages everything digitally
• You collect multi-currency payments from international clients and want competitive rates on conversions.

Traditional banks tend to suit you better if:

• You need complex financial products, like a business mortgage, trade finance facility, or structured loan.
• Your clients or partners require payments from a licensed bank account specifically.
• You prefer having a branch to turn to when complex issues arise.

But you do not have to choose just one.

Many people in Singapore use both. A digital bank account for local and international transactions and access to quick loan approvals, and a traditional bank account for trade finance products and more complex needs. This way, you get the benefits of both without having to compromise.

If neither a digital bank nor a traditional bank fully meets your cross-border payment needs, or if you do not have access to SingPass to qualify for an account, Statrys may be worth considering.

Statrys is not a bank, but a Major Payment Institution (Licence No. PS20200692) offering business payment solutions for businesses registered in Singapore, Hong Kong and the British Virgin Islands (BVI).

With Statrys, you can:

• Hold, send, and receive money in 11 major currencies: SGD, USD, EUR, CNY, GBP, HKD, JPY, AUD, CHF, NZD and CAD
• Make local payments across 12 currencies, including USD, AUD, INR, EUR, GBP, SGD, IDR, PHP, THB, TRY, KRW, and VND
• Send money to over 100 countries worldwide
• Access exchange rates based on the mid-market rate, with fees starting from 0.1%
• Xero integration to simplify bookkeeping
• Get pay-per-use bookkeeping and accounting services on the same platform
• A dedicated account manager who is available via phone, email, WhatsApp and WeChat.