Introduction
Singapore is a financial center and the fastest-growing economy in Asian countries. They provide services to their domestic economy and the entire Asia Pacific region. As a result, their banking industry has become a key player in the world’s financial market.
Their robust financial system, among the most influential in the world, underpins their expansion internationally. After Japan and Hong Kong, Singapore is Asia’s third-largest international finance center due to factors like a stable economic and political climate, favorable legal and tax policies, a reputation for integrity, and strict enforcement against crime and money laundering.
Over 100 foreign banks are on the market, which is a growing trend. If you are looking for a bank account in Singapore, this guide explains everything about the Singapore Banking System.
Check out the list of top banks and their services in Singapore. Let’s dive in to know more!
Structure of Banks in Singapore
Singapore consists of over hundreds of banks. We can divide the banking system of Singapore into the following categories –
- Local Banks: There are six local banks in town, and the three top ones are the Development Bank of Singapore, Overseas Chinese Banking Corporation, and United Overseas Bank.
- Foreign Banks: There are over 150 different foreign banks. To make it easier, many of these banks have been further divided into categories: banks for international trade, international development aid, and so on.
- Wholesale banks: There are 50 wholesale banks in Singapore. Banking has been an essential aspect of Singapore for decades, and wholesale banks and their related companies own a large part of the financial sector.
- Full banks: There are around 27 central banks. ABN Amro, BNP Paribas, and HSBC are the most prominent ones.
- Merchant banks: There are around 42 different merchant banks in Singapore. Visa, Bank of America, Credit Suisse, etc., are mentioned as types of merchant banks.
- Offshore banks: Around 37 are offshore banks- Korea Development Bank, Bank of Taiwan, etc.
Factors Contributing to The Success of The Banking System of Singapore
The following elements have helped the banking sector in Singapore succeed:
- More people are choosing to open bank accounts online due to the privatization of banks.
- Foreign banks’ expansion into Singapore has boosted Singapore’s global relevance and competitiveness.
- Laws governing private banking sparked a boom. People invested in banks to benefit from tax advantages and other services. This approach was the most effective for people wanting to see a higher investment return.
- Through mergers and acquisitions, local banks increased their regional assistance.
- Brands are responding to increased competition with innovative ways to compete and goods that can offer a long-term benefit, like lowered price increases.
- Offering various new banking services in addition to the more conventional lending and deposit-taking activities, such as corporate and investment banking.
- Small and medium enterprises make up a significant portion of the banking market in Singapore, so it’s essential to know how they want your interaction.
Overview of the Top Five Banks in Singapore
Many banking options are available to Singaporean consumers and businesses, and banking in Singapore has been growing in recent years. We have a market summary with some significant insights you might need to know. Additionally, the function of the monetary authority is covered so that you understand what you’re getting into legally.
Here is the list of the top five banks in Singapore:
- DBS Group– This Bank, one of the biggest in Asia, is ranked as having the highest amount of assets. About 4.6 million customers are served by the customer service department in Singapore, which has 22,000 employees. At the end of June 2017, this Bank acquired assets worth S$ 486.699 billion. There were S$1.2 billion in net profits at the end of March 2017. This increase is due to a rise in net earnings over this period and an increase in interest income and other sources of income. Marina Bay Financial Centre is where the bank’s headquarters are located.
- Overseas Chinese Banking Corporation (OCBC)– Regarding total assets acquired, OCBC is the second-best Bank. The bank was established in 1932. With around 600 branches, it operates in more than 18 countries worldwide. Around 30,000 people work at this Bank. This Bank’s total assets were S$429.6 billion, sufficient to cover all loan activity for June 2017. As of the end of March 2017, the entire loan to customers was S$221.5 billion. Chulia Street is where the Bank has its headquarters.
- Bank of Singapore- The OCBC Group includes the Bank of Singapore as a member. They act as a market for financial products and services. At the end of April 2017, the Bank had acquired $115.94 billion worth of assets. Global Finance and Asian Private Banker named it the best private Bank from 2011 to 2016, with a central office on Market Street and numerous branches in Hong Kong, Manila, London, and Dubai.
- HSBC Singapore– HSBC is one of the oldest banks in Singapore, having operated in the financial sector for over 140 years. It was founded in 1877 and is run by a group of excellent experts. It has over ten branches in Singapore and more than 3000 workers working. Additionally, it offers 40 or so ATM services. Customers can choose from a wide range of personal and business banking products (including insurance) from HSBC Bank. The Bank is headquartered in Collyer Quay.
- Citibank Singapore– This is the oldest American Bank in Asia. It’s been around for 115 years and is regulated by the Bank of International Settlements (BIS). Located on Temasek Avenue, the Bank provides a lot of employment opportunities across the country. They have hired over 10,000 people over the years and offer various innovative banking services. Citi bank has many branches and services across the world. They provide personal loans, travel insurance, and health insurance. Customers in nations like Singapore can access personal loans and time deposits from them.
Conclusion
The banking system of Singapore competes well and provides a wide selection of products suited to your needs. Each Bank offers a variety of features and services to accommodate various customer needs. However, customers may need help finding the best Bank for their savings needs.
You must be aware when choosing the right Bank for your financial need. More people will probably use efficiency-improving financial institutions for their everyday banking needs as Singapore’s economy expands, which will support this particular sector. Therefore, compare a supplier’s offerings to those of other businesses in your industry before selecting one.
This will save you time and effort while assisting you in locating the best business for your requirements. Consider factors like interest rates, fees, service quality, and customer support before selecting a bank.
We hope this guide has been helpful. Stay with us for more informative guides!