Singapore’s digital banking sector is showing strong momentum as new players report rapid customer acquisition and deposit growth. According to the Monetary Authority of Singapore (MAS), digital banks collectively reached over 1.5 million retail customers by mid-2025, with a combined deposit base exceeding S$4.5 billion.
Competition has intensified, with traditional banks responding through enhanced mobile apps, fee waivers, and partnerships with fintech firms. Analysts note that digital banks are attracting younger demographics and small businesses underserved by conventional banks.
“Digital banks are not just niche players anymore—they are reshaping customer expectations,” said Professor Lim Wei of NUS Business School. “The challenge will be achieving profitability while managing regulatory compliance.”
Industry experts expect continued innovation in areas such as AI-driven personal finance tools and embedded lending. The next phase of growth may depend on whether digital banks can scale profitably without relying solely on aggressive promotions.
About the Author
Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen.
Read more articles