Five digital banks collectively lose SGD 332 million while only GLDB and Trust Bank show clear progress toward profitability, validating the heavy capital path for entrants.

The five digital banks in Singapore posted combined net losses exceeding SGD 330 million in 2025, with only two making substantive progress toward breakeven, illustrating the 5–8 year timeline and SGD 150M+ investment often required for new financial services entrants. Total losses across Trust Bank, GXS Bank, MariBank, ANEXT Bank, and Green Link Digital Bank (GLDB) reached approximately SGD 332 million, according to Fintech News Singapore's 2025 industry report, underscoring the steep capital demands of digital banking even as revenues scale rapidly.

Digital Bank Financials in 2025: Scaling Revenue, but Losses Persist

Trust Bank generated the highest total income among the cohort at SGD 96.9 million while narrowing its net loss by 27% to SGD 93.3 million—a near-breakeven trajectory for the Standard Chartered-backed venture launched in 2022. GXS Bank recorded the steepest absolute loss at SGD 145.4 million, even as income more than doubled to SGD 29.6 million. MariBank posted total income of SGD 24.4 million against a net loss of SGD 51.0 million, with losses only marginally lower year-on-year. ANEXT Bank, Ant Group's wholesale digital banking unit, generated SGD 44.9 million in income but saw losses deepen to SGD 37.2 million.

GLDB stood apart. The agricultural supply chain-focused lender's income surged 447% to SGD 47.8 million, while net losses plunged 83% to just over SGD 5 million, indicating early operational stability. Analysts consider sub-SGD 10 million losses at this revenue level a credible signal that the bank is approaching unit-economic breakeven.

Amount (SGD million) (SGD million)Source: Orionmano Industries

Capital Requirements and Government Support

The magnitude of losses validates industry estimates that digital banking entrants require cumulative investment exceeding SGD 150–200 million before achieving breakeven. GXS Bank alone burned more than SGD 145 million in a single year, and its cumulative losses since inception are likely significantly higher. These figures underscore why the Monetary Authority of Singapore's licensing framework attracted well-capitalised consortia rather than standalone startups.

MAS has committed up to SGD 150 million over three years under the Financial Sector Technology and Innovation (FSTI) 3.0 scheme, announced in August 2023, to support projects incorporating cutting-edge technologies. In July 2024, MAS further enhanced the AI and data grant track under FSTI 3.0 by committing up to SGD 100 million specifically for quantum and artificial intelligence capabilities in financial services.

Singapore's broader fintech ecosystem continues to attract substantial private capital. According to KPMG's Pulse of Fintech H1 2025 report, the sector drew close to USD 1.04 billion (approximately SGD 1.36 billion) across 90 deals—the highest amount since H1 2023 and an 87% year-on-year increase from H1 2024. The payments vertical led with USD 475 million, anchored by Airwallex's USD 301 million mega-deal.

PwC's FinTech State of Play 2.0 survey, which received over 160 responses from fintechs with a Singapore presence, found that 16% of respondents have valuations exceeding SGD 100 million, with the payments sub-sector leading the list. Industry-wide spending on digital security reached SGD 1.1 billion in 2025, reflecting rising cyber threats and regulatory demands that add to the cost base for digital banks.

Startups can access additional relief through tax exemptions on the first SGD 100,000 of income, with 50% tax on the next SGD 200,000, the Singapore government also committed SGD 1 billion over five years to accelerate AI development and adoption, with up to SGD 500 million allocated to AI infrastructure. These incentives reduce but do not eliminate the capital burden on digital banking entrants.

Path to Breakeven: Industry Expectations and Timeline

The 2025 financial results support the prevailing industry view that digital banks require 5–8 years to achieve sustainable profitability. Trust Bank, launched in 2022, is on track to breakeven within approximately three years, while GLDB, similarly launched around 2022, shows early operational stability at year three. However, GXS Bank, MariBank, and ANEXT Bank continue to post growing absolute losses, suggesting a longer runway of 5–8 years or more.

PwC's survey found that 46% of fintechs working toward profitability expect to breakeven within the next 12 months, and 78% of respondents recalibrated their business models in the past three years—including pivoting to more sustainable approaches and pursuing mergers and acquisitions. This recalibration suggests the sector is moving toward more sustainable growth, though the trajectory varies significantly by business model and target market.

GLDB's narrow focus on trade finance for agricultural SMEs may explain its faster path to stability, while GXS Bank's ambition to serve underbanked consumers and small businesses across Southeast Asia requires heavier upfront infrastructure investment. Trust Bank's embedded insurance and wealth products, distributed through partnership channels, provide diversified revenue streams that accelerate breakeven relative to pure-play lending models.

With digital banks still burning capital at pace and only two showing clear progress, the next 2–3 years will likely see consolidation and accelerated M&A as investors demand a clearer path to sustainable profitability. The government's continued support through FSTI 3.0 and AI initiatives may help shorten the timeline for newer entrants, but the 2025 results confirm that digital banking remains a capital-intensive undertaking requiring patience, deep pockets, and disciplined execution.