Digital banks landscape in Singapore and Indonesia – assessing scope and potential

Research evidence excerpt

Digital banks landscape in Singapore and Indonesia – assessing scope and potential

Accessible version

Banks - ASEAN

Digital banks landscape in Singapore and

Indonesia – assessing scope and potential

Industry Overview

Different operating models – inclusion led growth trumps 26 June 2026

Singapore includes MAS Digital Full Banks (GXS, MariBank) and digital banks operating Equity

via full licenses such as Trust Bank. Trust Bank operates under a full banking license via ASEAN

Standard Chartered (JV with NTUC FairPrice) and is not subject to MAS DFB restrictions. Banks

SG market is highly mature, with near-full banking penetration and strong incumbent Sukriti Bansal >>

digital capabilities (DBS, OCBC, UOB). As a result, virtual banks are primarily targeting Research Analyst

niche segments such as SME, gig economy users and ecosystem-based services, rather Merrill+65 6678Lynch0454(Singapore)

than broad retail disruption. In contrast, Indo is driven by financial inclusion needs, high sukriti.bansal@bofa.com

mobile penetration and a large underbanked population. Digital banking adoption has Sachin Salgaonkar >>

Research Analyst

accelerated supported by ecosystem integration (Shopee, GoTo, Grab). Indo is among the BofAS India

fastest-growing digital banking markets in ASEAN, with strong expansion in customer +91 22 6632 8667

sachin.salgaonkar@bofa.com

base and balance sheets. Accordingly, we believe, ASEAN digital banking is diverging into

Aiden Chionh >>

two models: inclusion-led growth (Indo, Phils) and regulation-led rollout (SG, TH). Research Analyst

Merrill Lynch (Singapore)

Indonesia is better positioned for virtual bank growth +65aiden.chionh2@bofa.com6678 5539

Singapore has adopted a cautious regulatory approach, with two Digital Full Bank (DFB)