What’s next for Singapore digital banks in 2025 in quest for profitability

THE high interest rate environment has been a boon for digital banks in Singapore, enabling them to sustain higher promotional rates for customers although all three have yet to turn profitable.

While costs have led all three digital banks – GXS, MariBank and Trust – to remain in the red, the relatively high promotional rates were sustained for longer than digital bank counterparts in other countries.

For instance, MariBank has kept its interest rates at 2.7 per cent through 2024, cutting it to 2.5 per cent on Jan 1 this year. In comparison, digital banks in Hong Kong only offered the higher promotional rates to a small group of customers for six months, whereas all three digital banks here have offered the higher promotional rate to all customers without a time limit.