Dear readers, I read that Singapore’s three digital banking serving retail customers – Trust Bank, GXS Bank and MariBank have booked a smaller net loss in the financial year ended 31 Dec 2024.
Despite the crowded ecosystem in a small Singapore’s market where many already have banking accounts and access to banking services, Trust Bank grew to become the fourth-largest retail bank by customer numbers in February, with around a million customers on its books.
I could stand recall that some of the digital banks dangle high saving interest rate to stand out from the stiff competition here.
I don’t use any of the three digital banks featured in this post since I already have existing bank accounts and there are options to park some monies in some of the risk-free, less-risk financial options like Singapore Savings Bonds and Singapore Treasury Bonds.
In its purest form, a digital bank is a bank that operates entirely online without physical branches, offering banking services via mobile apps or web platforms. The user experience is built from the ground up to be mobile-first, seamless, and low-cost. Yet, as digitalization takes hold across industries, even traditional banks are increasingly “digital” in how they interact with customers. This makes the definition increasingly blurred.
For instance, DBS and OCBC now allow seamless mobile onboarding, real-time transfers, PayNow, integrated investments, and even robo-advisory services — all via apps. So, if the incumbents are “digital enough,” then what really distinguishes a “digital bank” today?
Is it simply a bank with no branches? One that gives higher interest rates? One that leverages fintech to reduce fees and improve personal finance insights? Or is it something more abstract — a bank that challenges the old models of profitability and scale?
That question is at the heart of what we’ll explore today, especially through the lens of Singapore’s three digital banking players: Trust Bank, GXS Bank, and MariBank.
1. Trust Bank – The Cooperative Challenger
Let’s start with Trust Bank, arguably the most successful of Singapore’s new digital banks by public visibility and customer growth. A joint venture between Standard Chartered Bank and NTUC FairPrice Group, Trust Bank has taken a differentiated approach by leveraging Singapore’s most established supermarket cooperative to appeal to the masses.
From the very beginning, Trust Bank has been laser-focused on retail. Its tie-ins with NTUC FairPrice mean customers can get NTUC Link rewards, discounts on groceries, and free insurance coverage – everyday perks that feel tangible in real life. By integrating with daily needs and delivering value in Singaporeans’ day-to-day lives, Trust Bank built a strong case to be the “people’s bank”.
Moreover, it offered attractive savings rates and a no-fuss credit card with cashback on NTUC purchases. The seamless app interface, fast digital onboarding, and integration with the FairPrice ecosystem gave it instant traction.
Despite the price pressures of offering promotions and interest to acquire customers, Trust Bank seems to be on a narrowing-loss trajectory, which may be sustainable as their scale grows and customer engagement deepens.
2. GXS Bank – Big Data, Big Ambitions
Next, we have GXS Bank, a digital bank backed by Grab Holdings and SingTel. This pairing brings together ride-hailing, payments, telco, and e-commerce data, and the bank is very much focused on leveraging data and ecosystem synergies.
GXS’s initial approach was cautious – it didn’t aggressively market deposit rates or loans to the general public, but instead began with personalized micro-savings accounts and micro-loans aimed at underbanked or underserved individuals, particularly gig workers and micro-entrepreneurs.
The premise was to build trust slowly by using AI and behavioral insights to craft savings nudges and credit offerings that were not traditionally feasible under legacy banking models. The bank’s GXS Savings Account, for instance, was introduced with a daily interest model and the idea of separate “Saving Pockets” to encourage goal-based saving.
Though customer numbers weren’t disclosed in detail as frequently as Trust Bank, GXS likely plays a longer-term game, using its rich ecosystem and data to develop hyper-personalized finance.
That said, this model may take more time to prove profitability, and public reception remains cautious. Yet, if GXS succeeds, it could redefine how banks operate in the platform economy — where Grab users become GXS customers, and their financial habits evolve in-app.
3. MariBank – The Quiet Contender
MariBank, backed by Sea Group (the company behind Shopee and Garena), has kept the lowest profile among the three. Only opening to the public in late 2023, MariBank also rolled out simple savings products with attractive interest rates and no fees. It focused on simplicity, security, and Shopee user integration.
The Mari Savings Account launched with an interest rate of 2.88% per annum, which was among the highest offered by any digital bank or traditional bank at that time for balances up to $75,000. This positioned MariBank as a “high-yield” savings account competitor and attracted savers looking for higher returns than conventional banks or even some short-term fixed deposits.
MariBank hasn’t ventured far beyond its savings account offering – no debit card, credit card, or major ecosystem integration at time of writing. However, given its backing by one of Southeast Asia’s most valuable tech companies, and its ability to tap into Shopee’s vast customer base, MariBank may be playing a slow and steady game.
Why I Don’t Use Them – A Personal Perspective
As a Singapore resident, I’ve had the option to open accounts with all three of these banks – and yet I haven’t.
Why? Simply put, I already have existing bank accounts with mobile functionality and access to low-risk financial instruments like Singapore Savings Bonds (SSBs) and Singapore Treasury Bills (T-bills). These options give me peace of mind, no risk of capital loss, and reasonably attractive returns, especially considering the government backing.
In fact, some money market funds (MMFs) that I use offer daily liquidity, auto-sweeping functions, and yields that are often equal or better than what the digital banks offer. Do I consider these MMFs a type of digital bank? In a way, yes — they perform a similar function: safe, liquid, yield-bearing storage of cash, fully online.
So, the lines are increasingly blurred. Does it matter whether an app is a bank, a brokerage, or a fund platform if it helps me manage my money securely and efficiently?
The Shifting Definition of a Digital Bank
If we zoom out, we see the term “digital bank” becoming less rigid and more fluid.
Today’s consumers care less about whether a bank has a full banking license or MAS approval, and more about:
- Can I open an account in 5 minutes?
- Is my money earning decent interest?
- Can I access and withdraw easily?
- Are there no hidden fees?
- Is it secure and backed by trusted players?
In that sense, Revolut, Wise, Endowus Cash Smart, moomoo Cash Plus, and even GrabPay Wallet could be considered “digital banks” by user behavior standards — even if they’re not technically banks.
Digital banking in Singapore is evolving from being a regulatory category to a functional behavior. If you use an app to store money, earn yield, and transfer or spend — then for you, that app is effectively your bank.
Are Digital Banks in Singapore Sustainable?
That said, from a business standpoint, digital banks in Singapore face tough economics:
- The market is small and saturated.
- There are no underbanked rural populations.
- Regulatory scrutiny is high and strict.
- Interest rates have been falling, squeezing net interest margins.
- Customer acquisition is expensive due to cashback wars.
To thrive, digital banks must innovate beyond interest rate bait. They must embed themselves in consumer ecosystems, build trust over time, and find sustainable monetization models.
Trust Bank has its NTUC synergy. GXS has the Grab data moat. MariBank could be Sea Group’s wallet for the Shopee economy. But all face the challenge of proving they are not just high-interest wrappers, but viable financial institutions that deliver long-term value.
Final Thoughts – What Does a Digital Bank Mean to You?
For some readers, a digital bank is one that gives the highest interest. For others, it’s about user interface and minimal friction. For yet others, it’s about innovation in financial products or simply not having to queue at a branch ever again.
But for me, the concept of a digital bank is more abstract – it’s any platform that lets me manage my money with transparency, control, and peace of mind. Whether that’s a GXS savings pocket, a MariBank account, or a money market fund in a brokerage app, what matters is the function, not the label.
Singapore’s digital banking journey is still unfolding. We’re watching new habits form, new models being tested, and new customer expectations being set. In time, we may stop calling them “digital banks” altogether – because all banking will just be digital.
So, what does a digital bank mean to you?