Digital banks in Singapore are experiencing consistent growth, which can be evaluated through a number of indicators including the net interest income and number of users.  

Since 2017, the net interest income of digital banks grew by an average of 60% annually. The largest increase of 0.7 billion euros took place in 2022, due to the launch of digital banks in the country. In 2023, the net interest income of digital banks equaled 2.7 billion euros. According to UnaFinancial’s estimates, it is expected to grow by 1.2 times by the end of 2024, reaching 3.3 billion euros.

The app download statistics are available from August 2022. In October 2023, the number of digital banking users reached one million people. The average monthly growth rate was 76%. UnaFinancial’s forecast shows that by 2025, the number of digital banking users will reach  1.7 million.

Analysts of the group comment: “The growth drivers for digital banks in Singapore include two main factors. First, there is an increasing demand for alternatives to traditional banks. Secondly, Singapore is characterized with a high degree of digitalization. The country ranks fourth in the Global Digital Competitiveness Ranking 2022.”

Apart from the historical changes, the study took into account influencing factors. For instance, the number of digital banking users is impacted by such factors as the level of smartphone penetration (direct correlation with the coefficient of 0.98), share of social media users among the population (direct correlation with the coefficient of 0.98) and the inflation rate (inverse correlation with the coefficient of 0.92).

The net interest income of digital banks is influenced by a number of factors, including the GDP per capita (direct correlation with the coefficient 0.73), Internet penetration direct correlation with the coefficient of 0.81) and the inflation rate (direct correlation with the coefficient of 0.84).