Singapore’s digital banks offer higher interest rates, grocery rebates to pull customers from traditional banks
- Digital banks in Singapore are stepping up promotions, services to attract sign-ups in a market dominated by traditional banks
- Digital banks operate entirely online, and do not have ATMs nor physical bank outlets
Among their offerings, the banks are ramping up promotions and services to help clients offset higher inflation.
Unlike traditional banks where customers can make transactions at physical branches, digital banks operate entirely online. They do not have automated teller machines (ATMs) to dispense cash, nor physical bank outlets.
Trust Bank, which is backed by Standard Chartered Bank and FairPrice Group, attracted more than 300,000 sign-ups for new accounts in the three months since its launch in September.
It offered a free bag of rice with every bank account opened, along with rebates of about 20 per cent on grocery shopping. More than 10 per cent of its users are over the age of 65.
However, none of its customers are using Trust Bank as their primary account just yet.
