In Singapore, a bank is defined as a deposit-taking institution that is licensed and regulated by the Monetary Authority of Singapore (MAS). 4 other types of deposit-taking institutions exist, including Qualifying Full Banks (QFB), wholesale banks, merchant banks and finance companies. 

Your regular OCBC, UOB or POSB/DBS bank is categorised as a Full Bank, which means they may carry out universal banking activities, like deposit taking, lending and cheque services. International banks operating in Singapore, such as Standard Charted Bank, are recognised as Qualifying Full Banks and are allowed to have a maximum of 25 branches in total.

» MORE: Compare the best savings accounts of 2025

In 2017, the rise of big fintech companies made banks around the world, including in Singapore, rethink their business model. Banks asked themselves, “What is a bank?” They pondered if they should go from lender to service distributor, to counter power players like Tencent, Amazon and Alibaba, who were, in MicKinsey’s words, seeking to be “all things to all people”. 

Today, thanks to major digitisation pushes, banks like DBS now have products like DBS digibank, PayLah! and iWealth, which comprises the bank’s online banking, digital wallet and wealth management platforms respectively. Meanwhile, OCBC revealed that in the first 6 months of 2023, 97% of transactions were performed digitally. Last year, OCBC also became the first bank in Singapore with institutional intraday lending capability, thanks to blockchain technology.

So then, what is a bank? Simply put, banks are businesses that make money by loaning cash to individuals and businesses. They use a technique called fractional reserve banking to free up capital for lending, by portioning off only a fraction of deposits required for withdrawal. Lending to others then helps them grow interest. Banks also use capital allocation to maximise their profits by distributing and investing its financial resources in smart ways. 

There are 5 types of deposit-taking institutions in Singapore, with Full Banks being only one of them. Let’s take a closer look at each of them:

• Full Banks include the major banks present and incorporated in Singapore, such as DBS/POSB, OCBC and UOB. They can conduct a comprehensive range of services, which MAS terms universal banking. This includes deposit taking, cheque services and lending. They may also offer financial advisory and insurance brokerage services, as well as capital market services, as regulated and authorised by MAS.

• Qualifying Full Banks would include major international banks such as Standard Chartered Bank and HSBC Bank. They are allowed to operate a total of 25 locations and offer services like any other bank. They may also offer Supplementary Retirement Scheme and CPF Investment Scheme accounts. 

• Wholesale banks may conduct the complete range of banking business enjoyed by full banks. However, they are restricted from carrying out Singapore dollar retail banking activities. Unlike personal banking, wholesale banking is used by large clients, such as government bodies, other banks, big corporations and real estate developers.

» MORE: The best savings accounts for parking your money

• Merchant banks are financial institutions that provide loans and capital for business entities. They may also provide consulting services, and use their expertise to help corporations structure large international transactions.

• Finance companies, unlike banks, are not governed by the Banking Act but are instead governed by the Finance Companies Act. The range of services they are allowed to provide is much more limited. They are allowed to conduct deposit taking and lend to individuals, as well as Small and Medium Enterprises (SMEs). 

Now that you know all about the different types of banks operating in Singapore, what about their products? Here’s an overview of types of bank accounts and loans:

• Current accounts are used to hold short-term funds you can use for regular spending. They give you a convenient way to access your cash, via ATMs, debit cards and online banking. However, they usually come with lackluster interest rates.

• Savings accounts also typically come with low interest rates, especially when it comes to basic savings accounts aimed at young adults or students. They are meant for safekeeping your emergency stash and as such, some savings accounts may even penalise you for transferring money out. For example, the OCBC Monthly Savings account will lower your interest rate to the base rate if you make a withdrawal. 

• Multi-currency accounts make international transactions seamless and are ideal for frequent flyers, or those who have business interests in multiple countries. Thanks to the ability of such accounts to hold multiple currencies, customers can save on hefty transaction fees and get access to more favourable exchange rates.

• Fixed deposit accounts are also known as time deposits, and are meant to hold funds over a long period of time until they mature. They often offer higher interest rates than current or savings accounts but will penalise you if you withdraw your money early. Though they are considered a safe way to invest, earnings from fixed deposits will never make the headlines since they can be low compared to stocks.

Ready to move onto loan types? Here are some common loans you’ll encounter in Singapore:

• Personal loans. All major banks offer personal loans, which usually have a tenure of 12-60 months. You may be asked to pay a one-time processing fee, though some banks may waive this requirement at their discretion. Once your tenure begins, you will pay a fixed monthly sum for the remainder of your loan period, until your debt is fully repaid. 

• Line of credits have no fixed tenure. Instead, they are available to you until you cancel your loan. When you take out a line of credit, you have access to your loan via the ATM, physical bank branches, cheque and internet banking. You are charged interest, at rates ranging from 18-22% p.a. when you draw on your funds, until you repay your loan.

• A funds or balance transfer are short-time cash facilities with low or zero interest rates. A fund transfer  is a great tool for credit card debt management, since they can move outstanding balance from one or more credit cards to an account with low or 0% interest. This is subject to a one-time processing fee between 1-5% on the approved loan amount, though banks may waive this during promo periods. After the zero-interest period is over, higher interest rates kick in, which is a good incentive for making repayment as soon as possible.

• Debt consolidation plans were established in 2017 by the Association of Banks in Singapore (ABS). It is a debt management tool that lets debtors combine all existing credit card and personal loans into one loan with lower interest rates. Several Full Banks and Qualifying Full Banks offer this service, but the caveat is that it is only available to those with interest-bearing unsecured debt up to 12 times their monthly income.

In Singapore, banking products and services are widely available and easy to access via over-the-counter services, on the bank’s mobile app or through online banking. 

These products and services can include:

• Online banking. Opening a new savings account? Or checking your transaction history to see if your pay has been deposited yet? There’s no need to do all this in-person anymore, since the advent of online banking services. In the event of any suspicious transactions, you can even apply to have your credit card or account frozen online.

• Debit cards and credit cards. Debit cards provide easy access to cash, via online banking, ATMs or simply a tap of your card. Credit cards are similar, though they cost more to maintain and often come with incentives for maximising your spending. That’s why we all know that one person with one credit card for miles, one for shopping, one for dining and so on.

• ATM 5 network. The ATM 5 network is an intrabank network connecting 6 of Singapore’s 8 Qualifying Full Banks. Since 2006, no charges are applicable for transactions via another network member’s ATM. The current members of the network include: Citibank, Maybank, HSBC, State Bank of India, Standard Chartered Bank and Bank of China.

• Insurance. Many major banks now offer insurance products from their partners. For example, DBS’s TravellerShield Plus is underwritten by Chubb Insurance, and OCBC’s insurance premiums are provided by The Great Eastern Life Assurance Company Limited. Some banks may also offer incentives for signing up for their insurance products, such as favourable interest rates.

• Investment. From roboinvestments, equities, T-bills, fixed deposits to investing with your CPF monies, the possibilities of investing with your bank are endless. And you can do it all without ever leaving your home! Similar to insurance products, your bank may offer you bonus interest rates for a fixed period, upon signing up for an eligible investment product.

• Home loans. Buying a home is a serious financial commitment. In Singapore, it’s common to take out a loan to finance your home thanks to skyrocketing property prices. You can get home loans from your bank for your HDB flat, condominium or private landed homes. According to the MAS, home loans for HDB flats are capped at 30 years, whereas home loans for non-HDB properties are capped at 35 years.

• Customer support. Though you can do just about anything online or via your bank’s app these days, sometimes human problems need human solutions. For this reason, banks still have 24-hour hotlines that you can tap on for reporting the loss of your card, scams and fraud. 

• Anti-scam and anti-mule teams. Banks in Singapore also employ anti-scam squads to combat scammers by using 24-hour surveillance and data analytics. In 2022, OCBC consolidated its anti-scam and anti-mule teams under one department—and then tripled its headcount. Some banks, like UOB, also employ anti-scam specialists to man its hotlines.

• Standing instruction for local funds transfer. Major banks in Singapore make it easy for you to set up recurring payments to a designated account. This can be done for rent or mortgage fees, so you never forget to pay on time.

• Bank or demand draft. Need to transfer money overseas to a beneficiary who does not accept cash? Send your funds over with a bank draft, which will remain valid for 6 months.

• Cheque issues and deposits. Once used liberally by individuals and corporations, cheque usage has declined over time by nearly 70% from 61M in 2016 to less than 19M in 2022 . MAS announced in 2023 that cheques would be slowly phased out, beginning with corporate cheques. Though banks are still issuing cheque books to individuals for now, the end is already on the horizon, with MAS encouraging everybody to transition to e-payment systems. 

When we think about financial services, we often default to banks. We forget that credit co-operatives exist, even though the oldest one in Singapore was registered all the way back in 1928!

Here are 2 alternatives to banks you can consider when you need financial services:

• Credit co-operatives. According to the Ministry of Culture, Community & Youth (MCCY), there are currently 22 credit co-operatives, or credit co-ops, currently operating in Singapore. Unlike banks, they are not-for-profit financial institutions operated, owned and run by its members. For example, the Singapore Teachers’ Co-operative Society Limited, which was registered in 1932, was set up for and run by teachers, whereas the Straits Times Co-op was started and operated by members of Singapore Press Holdings (SPH) group.

• Licensed moneylenders. All licensed moneylenders in Singapore are regulated by MAS and as such are bound by its rules. For example, MAS has limits on how much you can borrow, which is tied to your citizenship status and your annual income. Additionally, MAS also caps the maximum interest rate for moneylenders at 4% per month. Lastly, the MAS only allows moneylenders to charge 3 types of fees. The first is a late repayment fee not exceeding $60 per month, followed by a fee not exceeding 10% of the principal loan when the loan is successfully applied for. The final fee is legal costs upon court order, should the moneylender file a successful claim for the recovery of the loan.

• Online brokerages. From brokerages specialising in overseas stocks, to crypto exchanges, more people than ever are trading from the comfort of their home thanks to online brokerages in Singapore. Some popular exchanges used for overseas stocks trading include SAXO Markets, Interactive Brokers and CMC Invest. Budding traders may want to explore those known for low fees, like Tiger Brokers, moomoo SG and WeBull.

• Mobile wallet providers. Though banks may also be riding the mobile wallet wave, sending, receiving and storing money is no longer solely in their domain. From ride-hailing mobile wallets to multi-currency mobile wallets, there is a mobile wallet for every type of e-payment and occasion. There are even some that offer rewards, such as Google Pay which lets you earn scratch cards for potential cashback and DBS PayLah!, which gives you worldwide protection for your phone in case of loss, accidental damage or theft.

• Credit reports. Your credit report is like a credit score—it’s a financial bill of health that reflects on your ability to pay bills and loans on time. Credit reports are produced by the Credit Bureau Singapore (CBS) and are available for $8 a pop. Lenders often rely upon your credit report to gauge your creditworthiness, so be sure to practice good financial habits so CBS can write a glowing report your creditors will love.