Digital banks in Singapore aim to make banking simpler, faster, and cheaper—especially for customers who prefer app-first experiences. But “digital” does not always mean “best for you.” This guide explains what digital banks typically offer, how they differ from traditional banks, and a practical framework to choose one based on your use case.
1. What “digital bank” actually means
- App-first operations: Account opening, payments, cards, support, and dispute management done primarily via mobile or web.
- Simplified pricing: Fewer line items, clearer limits; many offer free domestic transfers up to a monthly quota.
- No branch dependence: Cash handling and in-person services may be limited; great for fully online businesses.
- Programmable money features: Virtual cards, scheduled rules for FX, spending limits, team roles, API/webhook integrations.
2. Strengths vs limitations
| Area | Digital Bank Strength | Common Limitation | What It Means for You |
|---|---|---|---|
| Onboarding | Fast eKYC, guided in-app steps | Extra checks for foreign-owned entities | Prepare a tight business profile if directors are overseas |
| Daily payments | Smooth FAST & PayNow for Business | Cash/Cheques often unsupported | Move suppliers and customers to e-payments early |
| FX & multi-currency | Transparent spreads, instant quotes | Depth may be thinner on exotic pairs | Plan batch conversions for better pricing |
| Cards & controls | Instant virtual cards, budget caps | Some lack premium travel perks/insurance | Choose based on control & reporting vs perks |
| Integrations | QuickBooks/Xero exports, CSV/API | Deep ERP connectors may be limited | Pilot with your accounting stack first |
3. A selection framework that works
Score banks against your real monthly pattern rather than headline fees. Start with a 12-month forecast and benchmark:
| Criterion | Weight | Questions to Ask |
|---|---|---|
| Payments cost & limits | 25 | Free FAST/PayNow quota? Price after quota? International wires? |
| FX pricing & availability | 20 | Spread tiers? Named collection accounts in USD/EUR/GBP? |
| Cards & controls | 15 | Virtual cards? Per-card limits? Merchant category blocking? |
| Onboarding fit | 15 | Are foreign directors supported? How are documents verified? |
| Integrations & reporting | 15 | Xero/QuickBooks sync? API? Webhooks? |
| Support & reliability | 10 | Live chat SLA? Weekend support? Incident transparency? |
Tip: Build a 3-scenario model (low/base/high volumes). Pick the bank with the lowest all-in cost in your most likely two scenarios—not just the absolute cheapest at one volume.
4. Example fee model (copy & edit)
Paste this table into a spreadsheet and change the numbers to your case:
| Item | Qty/Month | Unit Cost | Est. Monthly |
|---|---|---|---|
| FAST transfers (beyond free quota) | 30 | 0.50 | 15.00 |
| PayNow collections (beyond free quota) | 40 | 0.30 | 12.00 |
| International transfer (outbound) | 6 | 15.00 | 90.00 |
| FX conversion (spread estimate) | SGD 120,000 | 0.35% | 420.00 |
| Fall-below fee (if any) | 1 | 18.00 | 18.00 |
| Total (model) | 555.00 |
5. Onboarding documents (personal vs business)
| Customer Type | Typical Requirements |
|---|---|
| Individual | Passport/NRIC, address proof, selfie verification |
| Sole-Prop/LLP | Registration proof, owner/partners’ IDs & address proofs, business address |
| Pte Ltd (local) | ACRA Biz Profile, Constitution, Board Resolution, directors/UBOs IDs, business description & website |
| Pte Ltd (foreign-owned) | Above + certified parent docs, group chart, sample invoices/contracts, proof of Singapore operations |
6. Use cases that benefit most
- Online services & agencies: Many small payments, card-first spend (SaaS/ads), need granular controls.
- Cross-border SMEs: Issue invoices in USD/EUR/GBP and convert in-app with clear spreads.
- Lean startups: Quick onboarding and simple fees; no appetite for branch visits.
7. Risk management (don’t skip this)
- Turn on biometric + device binding.
- Enable maker-checker approval for payments above a threshold.
- Issue virtual cards per vendor; freeze instantly if compromised.
- Export monthly statements and reconcile within 3 business days.
8. Red flags that signal a bad fit
- Your business relies on regular cash deposits or cheques.
- Complex trade finance needs (LCs, trust receipts) from day 1.
- You require in-person notarization or physical token workflows.
digital bank Singapore, online banking, virtual cards, SME digital banking, eKYC onboarding, multi currency account, PayNow, FAST transfer
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About the Author
Helen Lili – Editor, Research Lead
Helen leads tariff analysis and product change tracking. She maintains the normalized dataset that powers our comparison tables and ensures each claim links back to a dated primary source.
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