In December 2020 alone, Singapore issued four licenses to digital banks.
Trust Bank and GXS Bank are two fully online retail banks launched last year. Both banks are trying to attract new customers in an increasingly attractive way – offering lower fees and encouraging new promotions, at the same time e.g. waiving minimum account balances.
According to Trust Bank data, since entering the market (September 2022), the bank has achieved a 9% share of Singapore’s banking market. This is the result of not only favorable conditions but also attractive promotions. Trust Bank has established a partnership with the largest Singaporean supermarket chain FairPrice Group. New credit card customers receive Singapore Dollar 25 ($18.80) vouchers to spend at the chain’s supermarkets. Later, when shopping for groceries, they can accumulate bonus points that can be exchanged for free products.
Its rival GXS Bank supports e.g. the transport giant Grab and the largest provider of telecommunications services in Singapore – Singtel. Companies with a total of over 3 million customers encourage them to register with the bank – it makes it easier for them to make payments. They direct their services mainly to entrepreneurs, including self-employed people starting their businesses. The bank’s representatives explain that as a digital bank, they are not burdened with many costs, such as maintaining a physical network of branches or ATMs, which allows for the introduction of more favorable conditions and the waiving of some fees required by traditional banks.
