Top 5 fintech business accounts guide in 2024: Features, benefits, and comparisons

Singapore is the fintech capital of Southeast Asia, with over 1,300 fintech firms doing business in the city-state.¹ It’s no surprise that fintech business accounts are widely used among individuals and business owners, particularly small and medium enterprises (SMEs). In 2022, the digital adoption rate of SMEs rose to 94.3%², and many of these firms look to fintech business accounts for services to complement their corporate bank.

In this article, we’ll explore the various fintech solutions in Singapore and how your business can benefit from using one. We’ll also cover why Airwallex’s end-to-end Business Account can support your global operations or help you achieve your overseas expansion plans.

What is a fintech business account?

A fintech business account is a fully digital account offered by financial technology (fintech) companies or digital banks. These accounts promise lower fees and greater convenience with fully-digital financial services. 

In Singapore, these business accounts are offered by two types of institutions:

The first are digital banks, which offer banking services exclusively online. They carry a Digital Banking Licence from the Monetary Authority of Singapore (MAS), and are allowed to offer services like multi-currency accounts, fixed deposits, and business loans, just like traditional corporate banks.³ However, digital banks have no physical branches and operate entirely online. ANEXT, Green Link Digital Bank, and Maribank are digital banks that serve businesses in Singapore. 

You can also get business accounts from fintech companies. These fintech business accounts innovate on cross-border payments, and can offer these services at lower rates compared to traditional banks. They also offer financial solutions beyond transfers, with features to support digital operations like eCommerce payments or employee reimbursements, which digital banks don’t provide. We’ll elaborate more on these differences below. 

Airwallex, Wise, and Aspire are examples of fintech companies that offer business accounts in Singapore. Airwallex, in particular, excels at supporting global payments and operations, which paves the way for businesses to grow beyond Singapore. Airwallex holds a Major Payment Institution licence from the MAS, which means customers’ deposited funds are safeguarded according to MAS regulations.

Top 5 fintech accounts for businesses in Singapore

Let’s take a look at what digital business banks ANEXT Bank, and Green Link Digital Bank can offer to businesses, and compare these against fintech payment specialists Aspire, Airwallex, and Wise. 

Airwallex for end-to-end financial solutions

Airwallex is an end-to-end financial platform built for businesses of all sizes. Compared to other fintech accounts, Airwallex offers a comprehensive range of solutions beyond payments and currency exchange. 

In just minutes, you can open a Business Account and send payments in minutes, without visiting a bank branch. Set up local currency accounts with local bank details 23+ currencies in 60+ countries at no additional cost, which saves you the hassle of opening bank accounts in markets where you do business. Avoid hefty SWIFT fees when you send payments to 120+ countries using non-SWIFT transfer methods, which have 0 transfer fees. 

The Airwallex Business Account also gives you instant access to corporate cards, expense management, bill payments, and payment links. Plugins and APIs let businesses quickly integrate Airwallex with existing accounting software or eCommerce platforms. 

Airwallex is also the only fintech account with an eCommerce gateway that supports like-for-like settlement in 11 currencies. Businesses can receive, hold, and payout in these currencies without converting to SGD, which cuts out unnecessary conversion fees.  

All these features help businesses scale quickly and enter new markets with ease.

Aspire for GIRO payments

Aspire is a fintech firm based in Singapore that caters to local businesses. They offer a business account with 5 currencies, and services like bulk payments. Their currency exchange and international transfers are powered by Wise.

Unlike Airwallex, Aspire does not have a payment gateway, though there is currently a waitlist for one. Their corporate card’s 1% unlimited cashback is also limited to SAAS and digital marketing spend, while the Airwallex Borderless Card has 1% unlimited cashback on all local and international expenses.

View our article comparing Aspire vs Airwallex to find out more.

Wise for individuals

Wise is a UK-based financial technology company that simplifies global money transfers for individuals and businesses. Singapore enterprises can use Wise Business to send and receive international payments at lower fees compared to banks. They can also use Wise to issue debit cards, track expenses, and make mass payouts.  

Unlike Airwallex, Wise doesn’t offer a payment gateway. Wise money transfers also cost a small fee for non-SWIFT methods, while Airwallex charges 0 transfer fees for non-SWIFT transfers to 120+ countries. 

Finally, Airwallex’s focus on being an end-to-end payment solution for businesses means it’s specifically designed to meet their unique needs. In contrast, Wise caters to both individuals and businesses, which can make its services less specialised for business users.

View our article comparing Wise vs Airwallex to find out more.

ANEXT Bank for loans and fixed deposits

Businesses with high volumes of USD transactions may want to consider ANEXT Bank. They provide a fintech bank account for holding and transacting in SGD and USD, and can earn interest on their USD with just a minimum deposit of USD 5,000. There’s also an SME business loan of up to SGD 500,000 and no fees for early repayment.

Green Link Digital Bank for supply chain financing

Green Link Digital Bank (GLDB) was the first fintech bank in Singapore and specialises in supply chain financing. This means businesses can access up to 100% of the funds from working capital within their supply chain. The Green Link Business Account lets you hold SGD and USD, and will soon offer CNH and JPY. 

Manufacturers and other businesses with complex multinational supply chains may get the most benefit out of Green Link’s banking services.

What is the difference between a traditional business bank account and a fintech business account?

The difference between a traditional bank account and a fintech business account is their physical presence, digital solutions, and fees.  

Traditional Bank Accounts:

Institutions like DBS and OCBC have physical branches and ATMs, often requiring in-person visits to open business bank accounts. These accounts typically come with account opening fees, annual fees, and higher charges for international transfers. While there are mobile apps for DBS business account and OCBC business banking, these services are not specialised in automating finance workflows. However, traditional banks are trusted for their long-standing reputation and often partner with government initiatives like Start Digital to support SMEs in their digital transformation.

Fintech Business Accounts:

Fintech accounts operate entirely online, without physical branches, leveraging digital-native technology to simplify payments and automate tasks like expense management and accounting. Offering quick account setup and competitive fees, fintechs focus on efficiency and reducing manual effort, making them ideal for businesses aiming to optimise costs.

Here’s a broad overview of the differences between a digital bank account and traditional bank account.

Benefits of using a fintech account

Businesses that need cost-effective banking services can benefit from using fintech companies. Here are some ways they simplify financial management:

• Quick setup. Opening a fintech account is more convenient because it is done entirely online. All you need are soft copies of your business registration documents and IDs of your partners or shareholders.  

• Overall lower costs of banking. Fintech accounts often have no account opening fees or maintenance fees compared to traditional banks. They also have lower cross-border fees and friendlier exchange rates.

• Greater ease paying multiple bills and invoices. Settle bills and invoices by uploading a CSV file or automating recurring payments. No need to spend time manually entering payment details. 

• Save time by automating financial tasks. Fintech accounts come with tools like expense management, which can simplify expense approval and reimbursements.

• Seamless integration with business software. Built-in integrations with accounting software and other tools allow businesses to manage their operations in one place.

Should you consider using a fintech business account?

Fintech business accounts are worth considering for your business. They often have lower fees compared to traditional banks, and can be easily opened online. Unlike digital banks, which offer online-only banking services, fintech firms like Airwallex overcome the limits of international payments with innovations like fast transfers and multi-currency eCommerce gateways. They also automate and  streamline tasks like expense management, issuing corporate cards, and bill payments.

As you evaluate different fintech companies, it’s worth understanding your business’s needs and looking out for features that support these. Here are some instances where a fintech account can be useful:

• Opening overseas bank accounts. It can take several weeks to open a business bank account in other countries. Fintech accounts let businesses open local currency accounts in seconds, which can be used to pay suppliers or accept payments from local customers. See how Hey Chips! used Airwallex to open 11 local currency accounts instantly.

• Paying vendors and business expenses.  Fintech accounts let businesses issue multiple corporate cards to their employees at no cost. Employees can easily pay for social advertising and other expenses, while managers can track and approve expenses in real-time. Discover how Airwallex helped PURE Group's employees stop using personal cards for business expenses with Borderless Cards.

• Exchanging currencies. Fintech firms offer interbank exchange rates and low markups, which make currency exchange more cost-effective. Multi-currency accounts allow businesses to accept and hold currencies without unnecessary conversion to SGD.

• eCommerce payments. Compared to traditional banks, fintech accounts are better equipped to help businesses accept eCommerce payments. They integrate easily with platforms like Shopify, and support local payment methods like GrabPay or AliPay. 

Fintech business account for global businesses: Airwallex Business Account

Ready to experience the benefits of fintech accounts? Look no further than the Airwallex Business Account. It’s designed to help businesses take off quickly by allowing you to open multi-currency business accounts in just minutes.  

As your business grows, you can easily expand your financial operations with options for payments acceptance, expense management, cards, and API integrations—all on one seamless platform. 

While Airwallex is not a digital bank, we are a MAS-licensed payment institution designed to help businesses cut costs and maximise profits on their global payments. Here are some of the services we offer:

• Multi-currency Global Accounts. Instantly create 23+ Global Accounts with a dedicated account number and local bank code. This lets you receive, hold, and spend foreign currencies without unnecessary conversion. 

• Fast, low-cost international transfers. Pay zero or low cost international transfer fees when you make non-SWIFT transfers to 120+ countries. 70% of transfers arrive the same day.

• Market-leading exchange rates. Maximise the value of every dollar with our friendly interbank exchange rates and currency risk management. 

• Borderless Cards and Expense management. Issue unlimited virtual and physical Borderless VISA Cards for free. Our cards have no hidden or foreign transaction fees and include real-time expense monitoring and custom controls to prevent misuse and keep an accurate record of expenses.

• Automated bill payments. Save time paying bills, employees, and suppliers. Send batch transfers for up to 1,000 recipients across countries, currencies, and transfer methods.

• eCommerce payment gateway.  Accept payments in 160+ payment methods and 180+ countries with our multi-currency payment gateway. Like-for-like settlement in 11 currencies cuts out unnecessary conversion fees and boosts your bottom line.

Creating an account is easy and fast - here’s how:

Step 1: Sign up for an Airwallex Business Account 

Step 2: Verify your business by uploading documents online

Step 3: Start using your account in 1-3 business days!

How to open an online business account with a fintech company?

To open a fintech business account, prepare soft copies of your business registration documents and shareholder IDs. Then go to the website of your chosen institution and begin the application process.

Here are examples of documents you’ll need to prepare. This is not an exhaustive list, and requirements can vary depending on business registered entity:

• Proof of business registration. This is typically your Accounting and Corporate Regulatory Authority (ACRA) business profile.

• Proof of business address. This can be a rental agreement or any official document indicating the business's registered address.

• Company directors and shareholder information. You need to provide NRICs or passports, and proof of address of all owners and shareholders. 

• Authorisation letter. If you are not the director of the registered business, provide a letter saying you have the authority to act on behalf of the company.

Are fintech business accounts safe to use?

Yes, fintech business accounts are safe to use in Singapore as long as they are because they are tightly regulated by the MAS. They must have a Major Payment Institution licence like Airwallex, which keeps customers' funds safe according to standards set by the MAS.  This means fintech firms must meet strict security and financial standards.  Fintech firms offering virtual business accounts are also licensed as Major Payment Institutions, which means they follow rules and safeguards set by the MAS.  

Final thoughts

Fintech firms offer digital financial services for businesses. They offer several distinct advantages compared to traditional banks, such as ease of account opening, instant corporate card issuance, and streamlined operations. However, traditional banks still have a place in helping SMEs grow, especially those who may require loans or support from government institutions in their digital transformation.

Ultimately, it's not about fintech being better than traditional banks. What’s important is that you understand your business's needs and choose the right combination of services.  

Airwallex drives your business forward with end-to-end payment solutions that let you go-to-market quickly. Unlike many fintech solutions in Singapore, Airwallex doesn’t just focus on currency exchange and transfers. Our technology enables growth throughout your entire financial operations.

In just minutes, you can set up a multi-currency business account to pay global vendors immediately. Open local currency accounts in 60+ countries with local bank details, minus the red tape. Airwallex grows with your business, and solutions like eCommerce payments or virtual cards can be activated quickly to support your changing needs. 

Dreamcore, Little Blossom, and Igloohome have built thriving global businesses with Airwallex.

Frequently asked questions

1. Does fintech substitute for banks?

Fintech firms don’t completely replace traditional banks but can complement them by offering flexible services and streamlining daily transactions. Together, they give businesses a well-rounded approach to managing finances.

2. Are there any limitations to using fintech accounts for international businesses?

Yes, there can be some limitations when using fintech accounts for international businesses. While they offer speed and lower costs, they may not provide the full range of services that traditional banks offer, such as large-scale loans or a relationship manager. Additionally, some fintech providers may have limited coverage in certain countries, which could affect global operations.  

3. How do I transfer funds from a fintech account to a traditional bank account?

Transferring funds from a fintech account to a traditional bank account is straightforward. Open your fintech app and enter the recipient’s name, bank account number, and branch code. Then enter the amount and currency. Depending on the provider and destination, the transfer can take anywhere from a few minutes to a couple of business days. 70% of Airwallex’s international transfers arrive on the same day when sent via local payment rails.

Sources

1. https://www.mas.gov.sg/development/fintech

2. https://www.imda.gov.sg/-/media/imda/files/infocomm-media-landscape/research-and-statistics/sgde-report/singapore-digital-economy-report-2023.pdf

3. https://www.mas.gov.sg/regulation/banking/digital-bank-licence

4. https://www.anext.com.sg/static/terms/feeschedule

5. https://www.glbank.com/data/tosend/resource/upload/GLDB-Fees-and-Charges.pdf

6. https://wise.com/sg/pricing/business

7. https://www.glbank.com/data/tosend/resource/upload/GLDB-Fees-and-Charges.pdf 

8. https://www.abs.org.sg/about-us/membership

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.