Digitalisation has transformed how small businesses operate — and now, it’s changing where they bank. In Singapore, digital banks are gaining traction as a flexible, cost-effective option for managing business finances.
Whether you’re running a startup or a growing SME, understanding the pros, limitations, and compliance considerations of digital banking could help you make smarter financial decisions in 2025.
A digital bank operates entirely online — no physical branches, no over-the-counter services. Everything is managed through a secure platform or app, from opening an account to making cross-border transfers.
In Singapore, digital banks are regulated by the Monetary Authority of Singapore (MAS). There are two types:
These banks hold full banking licences but are often more tech-driven, agile, and leaner than traditional banks.
Here’s why digital banks are catching the attention of small business owners in 2025:
Opening a business bank account with traditional banks often involves paperwork and multiple appointments. Digital banks usually offer fully online onboarding — often completed within a day or two.
Digital banks tend to offer zero minimum balance, lower transaction fees, and competitive FX rates for cross-border payments — a major plus for businesses with international clients or suppliers.
Some platforms offer direct integration with accounting systems, payment gateways, and dashboards — making cash flow visibility and reconciliation faster and easier.
Need to issue corporate cards for your team? Automate expense tracking? Access multicurrency accounts? Many digital banks are building SME-focused features with scalability in mind.
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Even if your business goes fully digital, your statutory obligations don’t change. You still need:
Choose a digital bank that offers clear documentation, downloadable statements, and multi-user access, so you can stay audit-ready and compliant.
Some digital banks may not support:
Always check the terms of service and whether the provider is MAS-licensed.
While digital-first means speed, it also means you’re relying heavily on one platform. Look for:
| Feature | Digital Banks | Traditional Banks |
| Account Opening | Fully online, fast | In-person, slower |
| Monthly Fees | Often low or none | Varies, often higher |
| FX and Transfers | Competitive, real-time | May have higher margins |
| Access to Loans | Limited or in beta phase | Full loan suite available |
| Regulatory Oversight | MAS-licensed | MAS-licensed |
| SDIC Coverage | Varies by provider | Usually included |
Some MAS-licensed digital banks include:
These banks are targeted at different audiences, but many offer SME accounts with simplified services.
Digital banking can improve your day-to-day efficiency, but it’s not a replacement for financial discipline. You’ll still need:
Digital banks are reshaping how small businesses in Singapore manage money. With streamlined account setup, lower fees, and smart integrations, digital banking can be a practical alternative to traditional banking, especially for SMEs focused on efficiency and cost control. This 2025 guide explains what digital banks offer, how they differ from traditional banks, and what business owners should consider before making the switch.
Try Counto BillPay, your all-in-one solution for bill payments, spend management, and accounts payable. Automate your financial processes with our intelligent AI. It’s 100% free and easy to use. Learn more!
Here are some articles you might find helpful:
ANEXT Bank vs Wise: What’s Best for Your SME in Singapore?
Year-End Payroll Adjustments in Singapore: A 2025 Guide for Small Business Owners
Amending IR8A Forms in Singapore: What Employers Need to Know
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