The Monetary Authority of Singapore (MAS) has announced a new set of regulatory measures aimed at strengthening consumer protection in the country’s fast-growing digital banking sector.
Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), has introduced fresh guidelines for digital-only banks, tightening rules around consumer data protection, lending practices, and customer dispute resolution. The move comes as digital banks such as Grab’s GXS Bank and Sea’s MariBank continue to expand their customer base, particularly among younger, mobile-first consumers.
Under the revised framework, digital banks will be required to provide clearer disclosures on fees, interest rates, and terms of service. They must also implement stricter identity verification measures to reduce fraud risks. Additionally, MAS has mandated that all consumer complaints must be resolved within 15 business days, down from the previous 30-day limit.
Industry analysts believe these regulations will help reinforce trust in digital banking services while ensuring that consumers receive the same level of protection as in traditional banks. “As digital banks become more entrenched in Singapore’s financial landscape, regulatory oversight must keep pace with innovation,” said Tan Wei Ming, a financial services consultant.
The changes are expected to increase compliance costs for digital banks, but experts argue that the long-term benefits outweigh the short-term challenges. “Consumer confidence is essential for growth. These new measures are not just about compliance, they are about sustainability,” Tan added.
For consumers, the new rules mean greater transparency and quicker resolution of disputes, potentially making digital banks more attractive compared to their brick-and-mortar rivals.
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