Top Digital Banks in Singapore: A Complete Guide

Understanding Digital Banks in Singapore

Digital banks are changing how we handle money, and Singapore is leading the charge in this shift.

So, what’s a digital bank? It’s a bank that works entirely online — no physical branches, no in-person visits. This means that from setting up a bank account to transferring money and other banking services, happens through your phone, ipad or computer. All you need is a good internet connection.

The advantage is that it’s incredibly straightforward and convenient. You can manage your finances at anytime, from anywhere. Whether it’s checking your balance, paying bills, or starting a savings plan—all with just a few clicks.

Because they operate online, digital banks often have lower fees than traditional banks. Some digital banks are even powered by advanced technologies like Artificial Intelligence and blockchain, making them faster, smarter, and secure.

In Singapore, digital banking is evolving rapidly, offering tailored services that are perfect for individuals and businesses alike. 

Digital bank licences in Singapore

The Monetary Authority of Singapore (MAS) issues two main types of digital bank licences: Digital Full Banks (DFBs) and Digital Wholesale Banks (DWBs). These licences are designed to make banking more accessible and efficient, especially for businesses.

What Are Digital Full Banks?

Digital Full Banks are able to provide a wide range of banking services to both individuals and businesses. This means they can offer you everything from business accounts and loans to other financial products. So, if you’re looking to streamline your personal and business finances under one roof, these digital banks can serve you directly. 

What Are Digital Wholesale Banks?

If you run an medium to small business, a Digital Wholesale Bank (DWB) could be a game changer for your business. DWBs are designed to cater specifically to businesses, offering services like corporate accounts, business loans, and cash flow management tools. Unlike Digital Full Banks, they don’t serve individual customers, but instead focus on businesses, giving you specialised solutions that may be more cost-effective and streamlined for your needs.

Why Do Digital Bank Licences Matter to You?

MAS introduced these licences to shake things up in banking, encouraging innovation and competition. For business owners, this is a big win. It means more digital-first banking options designed to help you manage your finances smoothly and efficiently.

Digital banks - whether full or wholesale - are regulated just like traditional banks. So, you get cutting-edge solutions without compromising on security or reliability. That’s basically win-win!

What Does This Mean for Your Business?

With no new digital bank licences being issued, the current digital banks are setting the pace in the industry. For your business, this translates to services that are more customised, faster, and often more cost-effective than traditional banking options.

Need an easier way to handle your business accounts, secure loans, or manage cash flow? 

Digital wholesale banks are stepping up with tools and support designed to simplify your financial management and help your business thrive.

Understanding how these digital banks can work for you could unlock a host of opportunities to save time, reduce costs, and manage your finances more efficiently. 

Are Digital Banks Safe for Your Business?

Safety is always a top priority when choosing a banking partner, and with any Singapore digital bank, you can have peace of mind. Here’s why:

Digital banks are part of the Singapore Deposit Insurance Corporation's (SDIC) Deposit Insurance Scheme. This means your deposits are insured up to S$100,000 per depositor. In other words, your money is just as protected as it would be with traditional banks.

For your business, this adds an extra layer of security. Whether you’re managing cash flow, making payments, or setting aside funds for future growth, digital banks can provide a secure space for your finances.

Comparison of the List of the Best Digital Bank Singapore

Why Digital Banking is a Smart Move for Business Owners in Singapore?

As a business owner in Singapore, staying on top of your finances is crucial to staying competitive. Digital banking gives you a modern, cost-effective way to manage your money. Here’s how it can help your business:

Cost-Effective Solutions

• Lower Fees: Without physical branches, digital banks have lower overhead costs, which means they can offer you lower fees for things like opening and maintaining an account.
• Savings on Transactions: If your business handles a lot of small payments, digital banks can save you a lot on transaction fees. Their rates are usually more competitive than traditional banks.
• Better Service Pricing: Take a closer look at the fees for the services you use most—like international transfers or local payments. Digital banks often have better pricing, helping you avoid unnecessary costs.

Tailored for Businesses

Digital banks get what business owners need. They offer everything from savings accounts to payment processing and loans. They are all built to support both startups and established companies. 

Simplifying Financial Management

Managing your business finances has never been easier. With digital banks, you can track transactions, process payments, and manage everything via a user-friendly app or website. This not only cuts down on operational costs but also saves you time, letting you focus on growing your business.

Smarter Financial Decisions

Switching to digital banking is more than just about saving money—it’s about making smarter decisions for your business. With lower fees, tailored solutions, and easy-to-use management tools, digital banking makes handling your finances much more efficient in Singapore’s fast-moving business world.

What to Keep in Mind About the Drawbacks of Digital Banking?

Digital banking offers a lot of perks, but it’s important to understand the potential challenges too. Being aware of these will help you make smarter choices and ensure your banking experience is smooth and secure.

Cybersecurity Risks

• Stay Protected from Cybercriminals: Since digital banking is online, it’s a target for cyber threats. To keep your business information safe, always use secure networks when doing your banking.
• Enable Two-Factor Authentication (2FA): Most digital banks offer 2FA, which requires two forms of identification to access your account. Be sure to turn this on—it’s an extra layer of protection for your business.

Solution:

• Practice Safe Banking: Always download banking apps from trusted app stores and keep them updated to avoid issues like malware. Many apps also come with built-in security features like digital tokens—take full advantage of them!
• Stay Prepared: Cybersecurity isn’t a one-time task—it’s an ongoing effort. While digital banks have strong risk management, it’s important for you to stay vigilant and follow good online banking habits.

Technology Dependence

• Reliable Internet Connection: Digital banks rely on the internet, so a slow or unreliable connection could cause issues with transactions or accessing your account.
• Possible Service Disruptions: Like any technology, digital banking systems can experience outages or glitches. These disruptions might delay payments or make it difficult to log in to your account.

Solution:

• Have Backup Plans: To minimise disruptions, consider keeping some funds accessible through traditional banking, or have a record of pending transactions offline just in case.

Balancing Digital and Traditional Banking

• A Dual-Banking Approach: Digital banks might not be the perfect fit for every situation. For some services or transactions, it may make sense to keep a traditional bank account alongside your digital one.

Solution:

• Diversify for Flexibility: Using both digital and traditional banks allows you to enjoy the best of both worlds—digital convenience and the reliability of physical banking. This way, your business stays flexible and ready for anything that comes up.

How to Choose the Right Digital Bank for Your Business in Singapore

Here’s a simple guide to help you make the right choice:

Match Your Business Needs and Goals

Think about what you really need from a bank. Is it quick account setup, global access, or flexibility to grow with your business? Once you’ve figured that out, you can start narrowing down your options. Make sure the digital bank’s services align with your long-term growth plans.

Compare Fees and Interest Rates

One of the biggest advantages of digital banks is lower fees compared to traditional banks, but don’t assume all banks are the same. Take a close look at things like setup fees, monthly charges, transaction costs, and international transfer fees. Also, check out the interest rates for savings accounts. 

Evaluate Features and Services

Consider what extra features will make your life easier? 

Here are a few examples to consider:

• Trust Bank offers high-interest savings accounts and perks on credit cards.
• GXS Bank has Savings Pockets to help you organise your funds.
• MariBank is good for e-commerce businesses, integrating with Shopee to offer tailored services.
• ANEXT Bank focuses on small and medium-sized businesses (SMEs), offering solutions like business loans.
• Green Link Digital Bank specialises in MSMEs, providing multi-currency accounts and working capital tools.

Check Customer Support and Transparency

Look for one that offers 24/7 customer support through chat, phone, or email. Also, make sure they’re clear about their fees and terms—hidden charges can eat into your savings fast.

Focus on Security

Security is key in digital banking. Check if the bank offers things like two-factor authentication, digital tokens for secure transactions, and if they follow local financial regulations to keep your money safe.

Read User Reviews

User reviews are a great way to gauge how reliable the bank is, how well its services work, and if other business owners are happy with the experience.

How to Open a Digital Bank Account for Your Business in Singapore

Opening a digital bank account for your business in Singapore is easy and convenient. Here’s a quick guide to help you get started:

1. Check Your Eligibility

First, make sure your business is eligible. Most digital banks cater to small businesses, startups, and SMEs, but some may have specific requirements depending on your business type, like a sole proprietorship, partnership, or private limited company. Your business also needs to be registered with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore.

2. Gather the Necessary Documents

You'll need to have a few documents ready to complete your application:

• Business Registration: Your ACRA registration number and business profile.
• ID Proof: The NRIC or passport of you and any other authorised signatories.
• Proof of Address: A utility bill or recent bank statement with your business address.
• Other Documents: Depending on the bank, you may need documents like a partnership agreement or articles of incorporation.

3. Start the Application Online

Most digital banks let you apply online. All you need to do is visit the bank’s website or download their app, fill in your business details, and select the type of account you want to open. You’ll also provide information about the business owner(s) and authorised signatories.

4. Verify Your Identity and Business

After you submit your application, you’ll need to verify your identity and business details. This usually involves uploading your documents, and sometimes you’ll have to do a quick video verification to confirm your information.

5. Wait for Approval

Once your application is in, the bank will review everything. Some banks approve accounts instantly, while others may take a couple of days depending on the verification process.

6. Activate Your Account

Once your account is approved, you’ll get your login credentials and instructions on how to activate your account. Then, you can start using your digital bank account to manage your business finances, transactions, and payments.

7. Set Up Your Business Services

Now that your account is up and running, you can link it to your business tools, like accounting software, invoicing apps, or payment gateways. Many digital banks also offer features like multi-currency accounts and expense management, making it even easier to manage your business.

How to Manage Your Digital Bank Account Effectively for Your Business

Managing your digital bank accounts is crucial for keeping your business finances in check and running smoothly. Here are some tips to help you stay on top of your finances:

Make the Most of Mobile Banking Apps

• Stay on Top of Payments

With mobile banking apps, you can set reminders for bill payments, ensuring you never miss a due date. This helps you avoid late fees and keeps your business’s cash flow steady.

• Real-Time Alerts

Turn on notifications for deposits, withdrawals, or any unusual activity. These alerts keep you in the loop so you can act fast if something unexpected happens.

• Budgeting Tools

Many apps offer budgeting features to categorise and track your expenses. This can help you identify areas where you might save money or adjust spending to optimise your business budget.

Review Your Account Regularly

• Check Balances Frequently

By checking your bank account balance regularly, you’ll always know where your business stands financially. This gives you the confidence to make informed decisions on the fly.

• Monitor Transactions

Take time to go over your transaction history to spot any irregularities or unauthorised charges. Identifying issues early can help prevent bigger problems down the road.

Integrate with Your Business Software

• Seamless Financial Operations

Many digital banks allow integration with accounting software like Xero or QuickBooks. This means your financial records are automatically updated, saving you time and reducing errors.

• Automate Your Records

Use automated tools to handle invoicing, expense tracking, and other financial tasks. This frees you up from spending too much time on admin work, so you can focus on growing your business.

• Custom Solutions with APIs

If you have unique business needs, some digital banks offer APIs that allow you to connect your account directly to custom tools or software. This flexibility can help tailor your financial management to your specific operations.

So, let's Recap

Here are the key points about digital banking for businesses in Singapore

What are the Types of Digital Bank Licences in Singapore? 

• • Digital Full Banks: Serves both retail customers and businesses with a range of services like traditional banks.
  • Digital Wholesale Banks: Primarily serves SMEs and non-retail segments.

Are Deposits in Digital Banks Safe?

• • Yes, deposits are safe and insured under the Singapore Deposit Insurance Scheme (SDIC), covering up to SGD 75,000 per depositor per bank.

Which Digital Bank Offers the Highest Interest Rates? 

• • Interest rates vary. Compare options from GXS Bank, MariBank, and Trust Bank to find the best fit for your business.

What are the main Benefits of Digital Banking for Businesses?

• • Lower Fees: Digital banks often offer lower fees compared to traditional banks.
  • Integration with Business Software: Streamline your finances with easy integrations.
  • Convenience: Faster access to services, including payments and loans.
  • Control: Real-time alerts and budgeting tools help you stay on top of your finances.

What to Consider When Choosing a Digital Bank for Your Business?

• • Fees: Pay attention to maintenance, transaction, and international transfer fees.
  • Features: Look for useful tools and payment solutions.
  • Security: Choose a bank with strong security measures like two-factor authentication.
  • Customer Support: Ensure quick and responsive support.
  • Scalability: Opt for a bank that can support your business as it grows.

Looking for an Easy Way to Manage Your Business Expenses?

If you're in search of an expense management solution that’s functional, customisable, and easy to use, Aspire could be the right choice for you. Here's how we can help you:

• Set Budgets Easily: Create budgets at the team, project, or client level and assign them to unlimited virtual cards.
• Real-Time Spending Insights: Monitor employee spending in real time from a single, intuitive dashboard.
• Streamlined Claims Management: Employees can upload receipts to submit claims, while you can review, approve, and pay them from the same dashboard.
• Multicurrency Accounts: Manage expenses in multiple currencies with Aspire’s multicurrency account, ideal for businesses with global operations.
• Effortless Integration: Sync card payments, employee claims, and receipts with your accounting software to reduce errors and close your books faster.
• Cashback on Purchases: Earn cashback on your business purchases, helping you save more as you spend.

Your business needs your full attention. So, get started right away! Open a business account with Aspire in just a few minutes.