DBS hits fintech firms with large fee hikes for custodian service

DBS will increase the fees it charges fintech firms to hold customer funds under its custodian services, a move that means higher costs for fintech companies operating payment services in Singapore.

The fee adjustment, which will take effect in April, applies to a product called virtual accounts.

Under Singapore’s Payments Services Act, major payment institutions or payment service providers that handle customer funds must hold those funds in segregated bank accounts for safeguarding.