SG digibanks brace for what’s next

Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.

Hello reader,

Back when Singapore’s digital banking scene was still new – licenses had been issued, but nothing had officially launched – I had a conversation with my dad about their value in the market.

Around 98% of Singapore’s adult population has a bank account, and other financial services like loans and investment tools are pretty accessible compared to other parts of Southeast Asia.

What can these digital banks offer that legacy players can’t? Why would someone put their money with a new player instead of one that’s been in the business for decades? What’s the opportunity here?

That’s something Singapore’s digital banks are figuring out. They’ve started out strong, offering much better interest rates on deposit accounts relative to incumbent players, but they can’t stop there if they want to make their mark.

Today we look at:

• What’s up – and what’s next – for Singapore’s digital banks
• A used-motorbike marketplace that’s raised fresh funds
• Other newsy highlights such as Google getting fined in Indonesia and what’s happening at eFishery

Premium summary

More than just a bank

Image credit: Timmy Loen

Digital banks in Singapore – such as GXS, MariBank, and Trust – have all experienced significant growth by offering attractive interest rates on savings accounts and accumulating deposits. But they can’t rest on their laurels.

• Strong start, but now what? While the digital banks have successfully attracted deposits, their next major hurdle is getting customers to use these accounts for daily transactions. They’re now offering incentives such as cashback and loyalty programs to encourage spending through their platforms.
• Data and details: Digital banks are using data from their parent companies’ ecosystems combined with AI to understand customer behavior and offer personalized financial solutions. This approach could differentiate them from traditional banks, particularly for segments that are often underserved by these institutions.
• What’s next: To remain competitive and grow beyond their initial gains, digital banks are looking beyond basic banking services. This includes investment products tailored to their customer base as well as offerings for SMEs.

Read more: Why Singapore digital banks can’t stop at banking

Startup spotlight

Vroom, vroom

Turn every connection into a positive ROI

Quick bytes