What Is Digital Banking? How It Works in Singapore, With Pros and Cons (2026)

"Digital banking" gets used for two different things. Sometimes it means any banking you do on a phone or laptop, including the app of a bank your company has used for twenty years. In Singapore, it also refers to a specific group of banks that MAS licensed to operate without branches.

The difference matters when you're deciding where your company's money should sit. This guide explains what digital banking is, how Singapore regulates digital banks, what they offer businesses and where they fall short.

What Is Digital Banking?

Digital banking is banking delivered through digital channels instead of a physical branch. Opening an account, verifying your identity, making payments, applying for credit and getting support all happen through an app or website.

Two kinds of institution offer it:

• Established banks that have moved most of their services online while keeping branches for customers who want them.
• Digital-only banks, built without branches from the start. In Singapore, the best known of these are licensed under the MAS digital bank framework.

Digital Banking vs Online Banking vs Mobile Banking

The three terms overlap, but they aren't the same thing.

Online and mobile banking are features. Digital banking describes how the whole bank works.

Digital Banking vs Traditional Banking

For a closer look, see our guide on how digital banks compare with traditional banks.

How Digital Banks Are Regulated in Singapore

Banks in Singapore, digital or not, are licensed and supervised by MAS under the Banking Act 1970. MAS opened its digital bank licence framework to companies without a banking track record and announced the successful applicants in December 2020.

The framework created two licence types:

According to MAS, a fully operating DFB or DWB has the same business scope and regulatory requirements as other full banks or wholesale banks. MAS says it isn't currently granting new digital bank licences.

Banking groups already in Singapore can also run digital banks under MAS's existing internet banking framework. Trust Bank, backed by Standard Chartered and FairPrice Group, operates entirely online but isn't one of the four digital bank licensees.

Deposit Caps for Digital Full Banks

DFBs start with restrictions while they build up their risk management. In a 2023 parliamentary reply, MAS said GXS Bank and MariBank began with an aggregate deposit cap of SGD 50 million, which it has since raised. MAS doesn't publish each bank's current cap. It also said each DFB had to cap an individual depositor's balance at SGD 75,000, the deposit insurance limit at the time.

The deposit insurance limit rose to SGD 100,000 on 1 April 2024. MAS hasn't published an updated per-depositor cap for DFBs since 2023, though GXS says there's no maximum balance on its GXS Biz Account. Check the bank's own terms before you move a large sum.

Are Digital Banks Safe?

MAS holds a DFB to the same capital and liquidity requirements as other full banks. GXS Bank and MariBank are members of Singapore's deposit insurance scheme, run by the Singapore Deposit Insurance Corporation (SDIC), which insures eligible SGD deposits up to SGD 100,000 per depositor at each member bank. Foreign currency deposits aren't covered. The scheme covers full banks and finance companies, so check whether a digital wholesale bank such as ANEXT Bank or Green Link Digital Bank is a member before you rely on it.

The bigger day-to-day risk is fraud. Never share one-time passwords, and check payee details before you approve a transfer. Our guide to online banking security tips covers the habits that matter most.

What Digital Banks Offer Businesses

Products vary, but a digital business account in Singapore usually includes:

• a current account in SGD, sometimes with a few foreign currencies
• local transfers through FAST and PayNow, plus international transfers
• working capital loans and, at some banks, supply chain financing
• fixed deposits
• integrations with accounting software or API access

Not every bank offers all of these, and who can apply varies a lot.

Trust Bank doesn't currently offer business accounts. For fees, currencies and owner requirements bank by bank, see our guide to Singapore's digital banks, including Trust Bank.

Pros of Digital Banking for SMEs

Faster Account Opening

Most digital banks verify the company through Corppass and its people through Singpass, so you can usually finish an application in one sitting. Approval often takes days rather than weeks.

Lower Running Costs

With no branches to pay for, many digital business accounts have no minimum balance or monthly fee. Transaction fees still apply, so compare the cost of overseas transfers and currency conversion, not just the headline account fee.

Access at Any Hour

Payments and approvals are available whenever you open the app. That helps if your suppliers or customers work in other time zones.

Cleaner Data for Your Books

Digital banks tend to offer real-time transaction feeds and accounting integrations, which cuts the time spent on manual reconciliation.

Cons and Limits to Weigh

Eligibility Rules

Digital banks only open business accounts for Singapore-registered entities, and some restrict who the owners can be. A foreign-owned company may qualify at one digital bank and be turned away at another, so check the owner requirements before you apply.

Limited Currency Support

Many digital banks hold SGD plus a handful of major currencies at most. If you invoice in GBP, AUD or JPY, you may end up converting each payment as it arrives.

No Branch to Fall Back On

If the app is down, you wait. Complex issues, such as a payment held for compliance review, are handled through chat or phone rather than at a counter.

A Narrower Product Range

Trade finance, FX hedging, cheque services and cash handling are less common. A growing business may need a second provider for these.

When a Digital Bank Isn't the Right Fit

Digital banks are one of several alternatives to traditional business banking. If your company trades across borders, a multi-currency account from a licensed payment institution may suit you better.

Statrys Singapore Pte. Ltd. is licensed by MAS as a Major Payment Institution under the Payment Services Act 2019. Statrys isn't a bank. Funds held with us aren't bank deposits, so SDIC deposit insurance doesn't apply, and we don't pay interest on balances. What we offer is a Singapore business account built for cross-border payments:

• one account for 11 currencies
• payments to and from more than 120 countries
• FX fees from 0.1%, based on real-time market rates
• no account opening fee and no initial deposit

Over 10,000 SMEs use Statrys, and 96% of accounts are opened within 3 business days. Statrys can't currently accept companies with a US citizen or US resident as a director, or as a shareholder or beneficial owner holding more than 10%.

For a wider comparison of banks and payment platforms, see our guide to the best business accounts in Singapore, or open a Singapore business account with Statrys.