Dear readers, in the previous week, we have seen one digital bank, after another, being rolled out in Singapore. First, we have had GXS, the digital bank that came about from the collaboration of Grab and Singtel. A day later, Trust Bank, the digital bank arising from the collaboration of Standard Chartered Bank and NTUC FairPrice around was rolled out.
Both digital banks, GXS and Trust Bank are offering good incentives for signing up to their platforms and these incentives are mainly in the form of interests, that can be credited into an account holders’ account faster than traditional bank accounts or could be used to offset purchases. Trust Bank is also offering Linkpoints rewards for certain transactions.
I believe many of us have accounts in traditional bank accounts, so with the emergence of GXS and Trust Bank, the question for a number of us here is whether should we also open a digital bank account?
Well, let me share with you my response for consideration: I will not open a digital bank account because I am already a “digital bank” myself. Why do I say so?
Well, I would treat digital banks as just platforms for individuals to centralise their spending, savings, crediting of salaries, investment into one single platform, and earning rewards in the process, offered by the digital bank player.
I am already a digital bank myself as I:
Use a digital app with a traditional local bank here to perform my banking transactions and also to credit my incomes and to save
Use another local bank which offers a better rate of fixed deposit to grow my monies
Manage my own investment through a financial brokerage, using my investment strategies honed through time and experience
Not bind myself to any particular bank by constantly exploring even better rates of fixed returns from other financial institutions, e.g Singapore Savings Bonds
Use just one credit card to chalk up all reward points from my expenditure
Use one loyalty card to earn loyalty reward points when shopping at a particular groceries chain
So, just by looking at the list above, don’t you think that I am already a “digital bank” myself and a better one than being limited to a single platform offered by the current digital banks for all my savings, spending and financial practice, as I can get to diversify and choose only the very Best for each financial aspect like savings, spending that I seek to better?
In a nutshell, my view is that digital banks is all about ORGANISATION as they give consumers an opportunity to CENTRALISE all their financial decisions and practices into one single platform and this will be good for those consumers who hitherto have not actively embarked on platforms to grow, save, earn rewards, invest etc.
But those who are already a “digital bank” like myself or even better, digital banks may be optional.