Nowadays, you really can’t leave your house without bringing your phone. Whether it’s to connect with people or just as a way to keep yourself occupied while you’re on the MRT, having a phone with you is a necessity. Quite literally everything is done digitally – including managing your finances. From seamless online transactions to advanced financial management tools, it’s never been easier or more convenient to streamline your financial experiences than through digital banks, whether it’s through an app or website. Today, we’re talking about the best digital banks in Singapore – what makes each bank unique, and what’s the best digital bank suited to your needs.
What Are Digital Banks?
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Digital banks, also known as online banks or neo banks, offer financial services completely via an app or website. This completely eliminates the need to go to a physical bank or even an ATM, saving you time and money. These digital banks are specifically made to be accessible, convenient, and user-friendly, which is a huge need in a place like Singapore, one of the financial hubs of the world.
What Can Digital Banks Do?
In essence, digital banks can do pretty much what a physical bank can do, without the need for face-to-face interaction. You can perform transactions, open and manage accounts, pay bills, make both local and international transfers, as well as contact customer service should you require any help or information.
Digital Banks vs Traditional Banks
Although very similar, digital banks and traditional banks come with their own set of unique services, which we have highlighted in the table below.
| Digital Banks | Traditional Banks | |
| Presence | Online; apps and websites | Physical; brick-and-mortar branches |
| Accessibility | 24/7 access via internet | Limited by branch hours and locations |
| Customer Service | Email, phone support, and online chat (mainly via AI bots); may not get answer | Face-to-face, phone support, and online support services; may have slower response time |
| Account Opening and Management | Online | Requires in-person presence |
| Technological Innovation | Often features finance management tools like instant notifications, automated savings, account monitoring, and contactless payment | – |
| Security Measures | Uses advanced encryption, multi-factor authentication, and other security practices to protect your money and data | Robust security measures, but can be slow to implement technological security |
| Range of Services | Similar to traditional banks, via digital delivery | Services include loans, mortgages, insurance, and investment products via in-person consultations |
| Speed & Efficiency | Automated services offer speed and efficiency | Can be slow due to paperwork and in-person requirements |
| Minimum Account Balance Requirements | – | Depending on the bank; other fees may include: – Account balances – Overdraft Fees – Other payments |
| Interest Rates On Savings | Higher interest rate acts as incentive to open a virtual savings and deposit account | Lower interest rates due to the expenses associated with maintaining physical branches and infrastructure |
Benefits Of Using Digital Banks
Digital banks offer users a seamless banking experience. In short, if you have a stable internet connection, then you can have access to your bank account 24/7. There are certain benefits that digital banks offer that traditional banks can’t, such as:
- Convenience: Manage your finances from anywhere in the world, via the bank’s app or website. Services include checking your balance, transferring money both locally and internationally, paying bills, making contactless payments, all without needing to visit a physical branch.
- Lower fees: As there are no brick-and-mortar branches to upkeep, digital banks have lower overhead costs. In turn, digital banks can offer offer reduced or even zero fees for their services, such as account maintenance, ATM withdrawals, and overdrafts.
- Higher interest rates: As an incentive for users to create digital banks accounts, digital banks offer higher interest rates, which will help your savings grow faster over time compared to traditional banks.
- Innovative features: Most digital bank apps and websites offer users innovative features, such as budgeting tools, automatic savings programs, and real-time spending notifications to help users manage their finances better.
- Accessibility: Completely eliminating the need to visit physical branches that have limited operating hours, digital banks offer users flexibility and convenience. Users can access their accounts and customer support 24/7.
- Security: Digital banks often use the latest security technology in order to keep their users data and finances secure. Measures include encryption, biometric authentication, and transaction alerts to help detect and prevent unauthorised access or fraudulent activity.
How To Open A Digital Bank Account In Singapore
Although the sign-up process may differ from one digital bank to another, the steps are usually straightforward and can usually be done completely online via the bank’s website or app.
However, there are certain requirements that must be met before you can open a digital bank account.
Requirements To Open A Digital Bank Account in Singapore
- Be at least 16 years old: This may vary depending on the digital bank
- A residential address in Singapore: Most digital banks will require proof of a Singaporean residential address, which can be provided in the form of a utility bill, bank statement, or government-issued document with your address on it.
- Valid documentation: Some digital banks may require you to have a valid Employment Pass, Work Permit, or Dependant’s Pass.
- Other requirements: Digital banks may also require users to have a valid Singpass MyInfo account.
Once you have gathered all the necessary documents and information, you can typically apply for a digital bank account online through the bank’s website or mobile app. The application process usually involves filling out a form with your personal details, uploading scanned copies of your identification documents and proof of address, and agreeing to the bank’s terms and conditions.
Steps To Open A Digital Bank Account in Singapore
- Research: It’s important to know all the different digital bank accounts in Singapore, and choose one that suits your needs best. You should take into account factors such as fees, interest rates, features, and customer reviews on their experience with using their preferred digital bank.
- Choose an account: When opening a digital bank account, you need to choose the type of account you want to open. Options include checking account, savings account, or you can choose both.
- Visit the bank’s website or download the app: Visit the website of your chosen digital bank or download their mobile app.
- Start the application process: Begin the application process by clicking a link or button that says something like “Open an Account” or “Get Started”.
- Fill in the necessary fields: You’ll be required to provide personal information such as your legal name, address, date of birth, proof of address, and other necessary documentation.
- Verify your identity: In order to prevent fraud, digital banks are required by law to verify your identity, so you will be asked to answer security questions, upload a photo of your ID, or provide other documentation.
- Fund your account: Once you have verified your identity, you’ll need to fund your new account, such as by transferring money from an existing bank account or depositing a check via mobile deposit.
- Wait for approval: After you’ve submitted your application, the digital bank will review your information and approve your account, which usually happens quickly, but may take up to a few days.
- Start banking: Once your application is approved, you can access your new digital bank account and start using its services.
You can also apply using MyInfo and Singpass for a hassle-free experience.
Best Digital Banks In Singapore
In Singapore, there are five main digital banks. These include:
- ANEXT Bank
- Green Link Digital Bank
- GXS Bank
- Maribank
- Trust Bank
How To Choose The Best Digital Bank For You
The best digital bank in Singapore will be the one that suits your needs best. Understand your banking needs, and choose a digital bank that will match your financial needs, whether that’s simply to use as an online wallet, or perhaps you need a digital bank that can perform more complicated services.
There are certain features that you should look for when choosing a digital bank, such as:
- Easy user interface via app or website
- Strong security features, such as two-factor authentication and alert notifications
- Ability to make online payments and transcations
- Access to investment platforms
- Financial management tools, such as budgeting tools and automatic saving programs
- Minimum account balance and balance requirements
- Compatibility with third-party services; ie contactless payments
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