The SME opportunity for Singapore’s digibank hopefuls

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Hello there,

As a reporter who spends hours sitting at a desk churning out stories, I think there’s a tendency to become disconnected with reality. After all, our views are often the sum of the people that we speak to.

That’s why I’ve mostly kept my skepticism around Singapore’s upcoming digital banks (including the newly launched GXS Bank, which is backed by a consortium consisting of Grab and Singtel) to myself – I assumed that it’s an unpopular opinion. As a recent Finder survey found, 21% of 1,003 respondents in the city-state have a digital bank account, with an additional 9% planning to open one in the next year.

But as it turns out, I am not alone: People in both my friend and professional circles also question the value of additional digital banks in Singapore. The service standards of existing banks may not be excellent, but it works, and it will take more than good user experience to lure them away from an incumbent bank.

The same, though, can’t be said for SME banking. Service standards and product offerings leave much to be desired, and therein may lie the opportunity. You can read all about it in this week’s Big Story – I interviewed Dennis Khoo, former head of UOB’s TMRW digital bank.

As a banking veteran, Khoo is deeply attuned to the colossal challenges faced by digibank hopefuls and gives insights on how new players can and should be approaching profitability in the long run.

Meanwhile, our hot take this week zeroes in on the official rollout of Indonesia’s cross-border QR payment link with Thailand, which looks to be another win for SMEs.

– Melissa

THE BIG STORIES

1️⃣ Can Singapore’s new digital banks break into its saturated banking space?

Image credit: Timmy Loen

With Sea Group and the Grab-Singtel consortium nearing the launch of their full digital banks, the battle for the SME and consumer wallet will soon begin.

2️⃣ Southeast Asia’s thriving buy now, pay later players (update)

Here’s our attempt at keeping you up to speed with recent developments in the sector. We’ve condensed our findings into a few key trends.

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI