A digital bank is an online-only platform that provides new and traditional banking products and services to customers.
The difference between a digital bank and a traditional bank is that a digital bank does not have a physical bank that customers can visit. However, most of the online functions that can be performed online for traditional banking customers can also be done for digital banking customers. For example, digital bank customers can still make transfers and deposits as they would as customers of traditional banks. In some cases, the charges that are levied on digital banking customers are lower than traditional banking customers. One of the reasons is that there are lower overheads when operating a digital bank as there are no physical locations.
Digital banks are regulated by the Payment Services Act. Under the category of account issuance service, the financial institutions under the Payment Services Act will be allowed to issue payment accounts to Singapore residents which includes natural persons and companies. It also allows these financial institutions to provide any services relating to the operation of a payment account including those that enable monies to be placed in or withdrawn from a payment account.
An example of a digital bank would be Aspire. Our company Little Big Secretary Services Pte Ltd is an affiliate partner of Aspire.
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Singapore Secretary Services
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