Thursday, 18 July 2024

Trust Bank aims to become fourth largest retail bank in Singapore

5 min read

Dwaipayan Sadhu, CEO of Trust Bank, explains the company's plans to become Singapore's fourth largest digital retail bank. Backed by Standard Chartered, Trust Bank pioneers seamless banking experiences through strategic partnerships and innovation, setting new standards for speed, simplicity, and trust in fintech.

Trust Bank CEO Dwaipayan Sadhu shares an ambitious vision for the bank’s growth in Singapore, aiming to be the fourth largest retail bank by customer numbers, after the three local banking giants, by 2024. 

In a fiercely competitive market, Sadhu aims to steer Trust Bank to become the leading digital-only retail bank in the country by building on innovative banking solutions and strategic partnerships.  

Trust Bank, a 60%-owned subsidiary of Standard Chartered (StanChart), operates under a unique full banking licence. Launched in September 2022, it has since garnered over 600,000 customers and more than SGD 1 billion ($750 million) in deposits. 

Given its long history in Singapore going back over 160 years, StanChart was granted the status of Significantly Rooted Foreign Bank by the Monetary Authority of Singapore in August 2020, 

becoming the first and only foreign bank to be recognised as such. This status affords it a distinctive position in the market, almost equivalent to that of local banks, including the ability to operate a digital banking subsidiary.  

According to Sadhu, Trust Bank’s approach is threefold: ecosystem integration, speed and simplicity, and transparent customer experience. He highlighted the bank’s integration into various parts of the ecosystem of the FairPrice Group, making it more than just about banking products and services for the latter’s more than two million users. He highlighted how this integration offers tangible benefits such as rewards and privileges for NTUC members who open a Trust Bank account. Sadhu emphasised Trust Bank’s technology edge over incumbent banks that are often bogged down by legacy systems. This has enabled it to offer users more seamless experiences and real-time services. 

Account opening times for deposit accounts have been reduced to less than two minutes, and instant loan approvals are granted in 60 seconds. This sort of speed is not only fastest in the market but amongst the fastest anywhere in the world. 

Trust Bank focuses on transparent banking products that are easy for clients to understand and track. Sadhu stressed the importance of simplicity in product design and communication, ensuring clients are always aware of what they’re getting, with no hidden conditions. Sadhu believes this transparency has been instrumental in building trust with its clientele. 

Sadhu claims that Trust Bank’s cost of customer acquisition is seven times lower than the norm in the market. A pivotal strategy that enabled this is the bank’s referral programme that offers instant incentives to customers. The power of instant rewards has significantly contributed to the bank’s ability to attract clients at a lower cost, he said. He asserts that the triumvirate of ecosystem, simplicity and transparency has not only attracted sign-ups but active users. The bank boasts an 85% credit card activation and usage rate. 

Alongside the ambition to become Singapore’s fourth largest retail bank, Sadhu outlined the bank’s plan to further expand its range of products and services. The most recent addition launched on 1February is Trust+, the bank’s premium service that offers customers enhanced experience, a higher interest rate on deposits and exclusive rewards. 

Keywords: Digital-only Retail Banking, Banking Solutions, Strategic Partnerships, Full Banking Licence, Foreign Bank Status, Ecosystem Integration, Speed And Simplicity, Real-time Services, Transparent Product Design, Customer Acquisition, Instant Rewards, High Activation And Usage Rates, Expansion Of Product Portfolio, Continuous Innovation
Institution: Trust Bank, Standard Chartered (StanChart), Monetary Authority Of Singapore (MAS), FairPrice Group
Country: Singapore
Region: South East Asia, Asia
People: Dwaipayan Sadhu
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