Singapore digital banks: Explained (2025)

In Singapore, digital banking is revolutionizing finance, offering convenient, tech-driven financial services tailored to modern needs, especially for e-commerce niche and cross-bordering transactions

In this in-depth blog post, we will help you understand

• What is a digital bank as per Singapore law, and how do they work;
• Benefits of opening a digital bank account;
• Top digital banks in Singapore you can choose

Let’s get into it.

1. What is a digital bank in Singapore?

According to the Money Authority of Singapore (MAS) definition and licensing requirements, a digital bank (virtual bank, internet-only bank, or online bank) operates entirely online, offering full banking services—like opening accounts, making transfers, and applying for loans—through apps or websites without physical branches. 

This online-only approach allows users, especially business owners and entrepreneurs, to handle their finances flexibly, anytime and from anywhere. 

Digital banks also generally provide lower fees,  a high chance of account opening, and competitive rates, making them cost-effective compared to traditional banks in Singapore.

2. How does a digital bank work in Singapore?

To diversify and modernize Singapore’s banking sector, the Monetary Authority of Singapore (MAS) introduced two digital bank licenses in 2020:

• Digital Full Bank (DFB): Allows banks to serve both retail and corporate customers with a full range of banking services. Examples include GXS Bank and MariBank.
• Digital Wholesale Bank (DWB): Primarily serves small to medium enterprises (SMEs) and corporate clients, excluding individual customers. Examples include ANEXT Bank and Green Link Digital Bank.

Some other digital banks, like Trust Bank, operate under different frameworks, offering additional options in Singapore’s digital banking landscape.

The licensing process aimed to support financial innovation and competition by selecting providers that meet MAS's rigorous requirements for stability, security, and customer benefit. 

That is why, a bank can only be a digital bank if it possesses a digital bank license in Singapore.

3. What are the advantages and challenges of using an account from a digital bank?

Digital banking can enhance the way individuals and businesses manage their finances with the following advantages

• Cost-effectiveness: Lower fees due to minimal operational overhead.
• Accessibility: Services are accessible 24/7, often with streamlined sign-ups.
• Personalization and tools: Customizable financial tools such as budgeting, spending insights, and business account features.
• Speed and efficiency: Faster transactions and approvals, are especially appealing for businesses.

Although advanced as digital banks are, they still pose some typical challenges that account holders must face when using

• Cybersecurity risks: With operations online, digital banks are exposed to potential cyber threats. Strong cybersecurity measures are essential.
• Regulatory hurdles: Compliance with monetary authorities is crucial, especially as digital banking regulations evolve.
• Lack of physical presence: For some users, the absence of in-person support can be a drawback, particularly for complex financial needs

4. Types of “digital banks” on the market

There are many banks that can operate entirely online. The difference between them is the license they are granted by the MAS in Singapore. The top 3 categories of online banks in Singapore are:

4.1. Digital Banks

Digital banks operate entirely online, offering a full range of banking services, similar to traditional banks, but without physical branches. They must hold a Digital Full License or Digital Wholesale License issued by the Monetary Authority of Singapore (MAS). Services include personal and business accounts, loans, and some investment products.

Examples: GXS Bank, Trust Bank, Grab Financial Group.

4.2. Neobanks

Neobanks are online-only financial platforms focusing on specific services like cross-border payments or business expense management. They require a Major Payment Institution License from MAS, offering more specialized services for lower costs but without loans or investment products.

Examples: Wise, Revolut, Payoneer, Airwalex

4.3. Traditional Banks with Digital Services

Traditional banks have expanded their digital services, creating hybrid models that combine physical branches with comprehensive digital platforms (banking apps, websites). This appeals to customers who want in-person service and convenient digital access.

Examples: DBS Digibank, OCBC Digital, UOB Mighty.

5. What is the difference between neo-banks, digital banks, and traditional banks?

5.1. Difference between digital banks and traditional banks 

5.2. Difference between digital banks and neo banks

While both neo-banks and digital banks are online only, they serve different roles:

• Licensing: Neobanks may be unlicensed or operate under a "Major Payment Institution" license, which limits them mainly to payment services. Digital banks in Singapore require a “Digital Full” or “Wholesale” license, which allows more comprehensive services.
• Services: Neobanks focuses on specialized services, such as cross-border payments, business accounts, and expense management. Digital banks offer a wider array of services similar to traditional banks, including loans and investment products.

6. Top 4 digital banks in Singapore

Here’s a comparison table for the four digital banks in Singapore based on their services and focus:

7. How can we help you open an account with digital banks in Singapore?

As a recognized partner of Singaporean banks, our expertise lies in simplifying the process and increasing your chance of opening Singapore bank accounts with success. We ensure a smooth, prompt, and thorough experience for our clients, prioritizing professionalism throughout the entire procedure.

• Recommend the right bank and the right bank account for your need
• Support you in opening a reliable, trusted digital bank account or traditional bank account;
• Prepare necessary documents for account opening;
• Schedule an appointment with a Singapore bank representative;
• Monitor and assist in opening personal bank accounts (physical and digital) for clients in Singapore.

Global Link Asia Consulting, as your trusted one-stop corporate service provider helping hundreds of business owners start their businesses overseas and manage their companies with success, can help you

• Register a company in Singapore;
• Open a corporate bank account in Singapore with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Apply for Singapore business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

8. FAQs about multi currency accounts in Singapore

With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an  expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries

Our areas of expertise include:

• Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
• Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
• Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
• Opreation support:
• Registered adress;
• Foreign consular legalization;
• Trademark and patent protection registration in Singapore and the US;
• Employment Pass application in Singapore and Hong Kong;
• Website design, international SIM number provision;
• DUNS registration.

With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.

5.0 / 5.0 Reviews

+700

Customers

+10 years

Cross-disciplinary experience

Top 10

Leading Asian Brand

Collapse Expand