Singapore’s first digital bank Trust Bank launches

THE Standard Chartered Bank and FairPrice Group’s digital bank, Trust Bank launched with savings accounts and credit card offerings for retail customers.

Unlike GXS Bank and Sea’s MariBank, which require approval from the Monetary Authority of Singapore to expand beyond savings accounts, Trust is able to offer a full suite of banking products having acquired a full bank licence. (*see amendment note)

“With greater digital adoption in financial services, there is much potential for the banking sector to relook how to do things differently and serve customers better,” said Deputy Prime Minister Lawrence Wong at the launch event.

Between Standard Chartered, FairPrice Group and NTUC Enterprise, S$400 million has been invested into the bank.

“Backed by Standard Chartered’s track record in building successful digital banks globally and our partner FairPrice Group’s strong brand and extensive ecosystem, Trust offers at launch a well-rounded suite of savings, credit and protection solutions coupled with rewarding lifestyle offers and benefits,” said Judy Hsu, Standard Chartered’s chief executive of consumer, private and business banking.

On deposits up to S$50,000 customers will get 1 per cent per annum and 0.05 per cent for deposits above S$50,000. NTUC Union members will get bonus interest of 0.4 per cent on deposits up to S$50,000 for making 5 eligible Visa purchases on their Trust card. Non-union members will only enjoy bonus interest of 0.2 per cent on the same purchases.

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There will be no minimum balance amount for the savings account. Dwaipayan Sadhu, chief executive of Trust, says that the 1 per cent interest rate is a sustainable one for the bank, as it has some advantages in operating as a digital bank.

“There are no plans to change the rate any time in the future,” he said.

The credit card offered by Trust has no annual fee, foreign transaction fee, cash advance fee or card replacement fee. The card also allows customers to earn NTUC Linkpoints rebates at an accelerated rate.

Union members can earn up to 21 per cent of Linkpoints rebates with a minimum of S$350 spend outside of FairPrice Group. The debit card will get 11 per cent Linkpoints Rebates for S$200 minimum monthly spend. Union members’ rebates includes FairPrice Members benefits and have an annual rebates cap of S$6,000 in FairPrice spend.

Non-union members will get up to 15 per cent Linkpoints rebates for minimum spend of S$450 for the credit card and 5 per cent for S$200 for minimum spend on the debit card. For non union members there’s a 7,500 quarterly bonus cap on credit card and a 3,000 quarterly bonus cap on debit cards.

“Trust’s credit card and savings account will empower our customers to enjoy savings from groceries to food and everyday spend via seamless integration with FairPrice Group’s Link Rewards programme, while benefiting NTUC union members with an easier way to earn higher LinkPoint rebates and savings account interest,” said Kee Teck Koon, chairman of FairPrice Group.

Trust is also offering a family personal accident insurance by Income just for the launch, at a premium of S$0.50 per month. Customer can get this by signing up for Trust credit card and is available for no premium for the first 2 months.

The signup process for an account or credit card takes minutes with a SingPass account and Trust’s credit card is the first numberless one in Singapore. The card can function both as a debit and credit card.

Who Trust is targeting is the entire NTUC ecosystem, from the FairPrice supermarkets to insurance at NTUC Income. According to Sadhu, 1 in 3 Singaporeans have interacted with FairPrice or the larger NTUC ecosystem including the NTUC LinkPoints reward system.

“Our real target segment is the NTUC FairPrice ecosystem, our value proposition is built around that, you get the most benefits if you are part of the ecosystem,” said Sadhu.

With the older demographic having used digital banking services, he believes that it would help Trust have an unrestricted target audience. Trust also will allow customers to withdraw cash via their ATM located in Fairprice at Vivocity or any Standard Chartered ATM.

“Through listening to our customers and by leveraging the strengths of our partners, we are committed to bringing real tangible value to our customers in Singapore through accessibility and convenience, and making Trust a part of their everyday lives,” said Sadhu.

*Amendment note: A previous version of this story incorrectly stated Trust Bank had an Internet-only bank licence and had 0.5 per cent interest rate on depositsA previous version of this story incorrectly stated Trust Bank had an Internet-only bank licence and had 0.5 per cent interest rate on deposits above S$50,000.