The Monetary Authority of Singapore oversees 159 licensed banks as of 2025, with wholesale banks dominating and six full-service digital banks now operational.

Overview of the Licensed Banking Landscape

As of 2025, the Monetary Authority of Singapore (MAS) regulates 159 licensed banks, a figure that encapsulates the city-state’s position as a global financial intermediary. Wholesale banks constitute the largest category at 124 institutions, representing roughly 78% of all licensed banks. The remaining 29 banks include full banks, merchant banks, and finance companies, while six full-service digital banks now operate under MAS’s calibrated licensing regime.

MAS regulates all deposit-taking institutions across four categories: full banks, wholesale banks, merchant banks, and finance companies. Full banks can offer the complete suite of retail and corporate banking services, including accepting deposits from the public. Wholesale banks, by contrast, are restricted from taking retail deposits and focus primarily on corporate, investment, and trade finance activities. Merchant banks engage in capital market activities such as corporate finance, mergers and acquisitions advisory, and fund management. The wholesale bank segment’s sheer size underscores Singapore’s role as a hub for cross-border corporate banking, trade finance, and capital market intermediation.

Trust Bank, a joint venture between Standard Chartered Bank (Singapore) and FairPrice Group, operates under a Full Bank Licence rather than a digital-specific licence, even though it functions entirely as a digital full bank. This distinction allows Trust Bank to run ATMs, cash deposit machines (CDMs), and a full suite of banking services similar to traditional brick-and-mortar banks, bridging the gap between the legacy and digital categories.

Source: Orionmano Industries

The Rise of Digital Banks

Six full-service digital banks are now operational in Singapore, though their licence classifications differ. Four hold MAS’s digital-specific licences: GXS Bank and MariBank operate as Digital Full Banks (DFBs), while ANEXT Bank and Green Link Digital Bank hold Digital Wholesale Bank (DWB) licences. Trust Bank, as noted, operates under a traditional Full Bank Licence. This brings the total count of institutions offering digital-first full-service banking—whether under digital-specific or traditional licences—to six.

The distinction between DFB and DWB licences is consequential for market access. Digital Full Banks can serve both individual consumers and business customers, offering retail deposit accounts, payment services, and lending products. Digital Wholesale Banks are restricted to serving only SMEs and corporate clients; they cannot accept retail deposits. GXS Bank, backed by Grab and Singtel, and MariBank, operated by Sea Group, compete directly with traditional retail banks for consumer deposits and payment volume. ANEXT Bank (Ant Group) and Green Link Digital Bank (Greenland Group and Linklogis) focus on business banking, trade finance, and supply chain solutions.

MAS is currently not granting new digital bank licences, a stance that grants the existing cohort a significant first-mover advantage. All licensed digital banks in Singapore are regulated by MAS, and digital full bank deposits are insured by the Singapore Deposit Insurance Corporation (SDIC) up to S$100,000 per depositor. Digital Wholesale Banks, however, may not be members of the SDIC scheme, reflecting their exclusion from retail deposit-taking.

Trust Bank exemplifies the hybrid model: as a venture between Standard Chartered and FairPrice Group, it leverages an incumbent bank’s balance sheet and regulatory infrastructure while operating entirely through digital channels. Its Full Bank Licence gives it the broadest permissible activities of any digital bank in Singapore, including ATM operation and cash handling.

Regulatory Framework and Licence Types

MAS offers two distinct digital bank licence categories: the Digital Full Bank licence and the Digital Wholesale Bank licence. The digital bank licence framework was introduced to encourage innovation in financial services while maintaining financial stability, requiring applicants to demonstrate strong capital backing, technological capability, and sound risk management.

The traditional bank licence structure comprises full banks, wholesale banks, and merchant banks. Full banks can undertake all banking businesses permitted under the Banking Act, including accepting deposits from the public and operating savings accounts. Wholesale banks may conduct the same range of banking activities as full banks but are restricted from accepting deposits from Singapore residents or operating savings accounts, effectively limiting them to corporate, institutional, and high-net-worth clientele. Merchant banks are governed by the MAS’s Merchant Bank Guidelines and focus on capital market activities.

The digital bank licence framework sits alongside these existing categories. DFB licence holders must comply with the same capital adequacy, liquidity, and regulatory requirements as traditional full banks, but are exempted from physical branch requirements. DWB licence holders face lighter prudential requirements commensurate with their restricted deposit-taking scope.

Implications for the Financial Sector

The 124 wholesale banks form the backbone of Singapore’s banking sector, providing extensive corporate lending, trade finance, foreign exchange, and capital markets services that anchor the country’s role as a global financial hub. Their concentration reflects the jurisdictional advantage Singapore offers as a neutral, well-regulated base for regional treasury operations, syndicated lending, and cross-border transaction banking.

The emergence of six full-service digital banks introduces new competitive dynamics in retail and SME segments. Digital banks like GXS, MariBank, and Trust Bank typically offer zero-fee domestic transfers and no account opening fees, pressuring traditional full banks to reduce fee income and improve digital user experiences. Trust Bank’s partnership model—combining Standard Chartered’s banking licence and infrastructure with FairPrice Group’s retail customer base—demonstrates how incumbents can leverage digital channels without applying for a new licence category.

MAS’s decision to halt new digital bank licences caps the competitive set at its current composition, protecting the market positions of incumbents while giving the six existing digital banks a runway to scale. For wholesale banks, the digital threat is more limited: ANEXT and Green Link target SME and corporate clients but remain small relative to the incumbent wholesale franchise. The broader implication is that Singapore’s banking sector is bifurcating: traditional wholesale banks continue to dominate corporate and institutional business, while digital-first players—both licensed digital banks and hybrid models like Trust Bank—capture incremental retail and small-business volume. Whether this bifurcation persists or consolidates will depend on how quickly digital-only providers can expand beyond zero-fee deposits into full-service lending and wealth management.