Business Accounts Comparison: Neobanks vs. Traditional Banks in Singapore

Editor’s Note: Business Accounts Comparison – Neobanks vs Traditional Banks in Singapore is a guest article written by Aspire.

Neobanks, also known as a new wave of digital-only challenger banks, first came into the market a few years ago in response to the rising demand for simple, quick, and hassle-free online and mobile services. Their presence is a direct challenge to the traditional banking industry and has the potential to transform the way consumers experience financial services.

Consumers have started making the switch to challenger banks, with an independent study showing that over 50% of consumers now credit their salaries into Neobanks as their primary account. In recent times, businesses too have wisened up, in part thanks to the rise of Neobanks for businesses.

One such player is Aspire, the 1st Neobank for businesses in Singapore and in South-east Asia.

Aspire is serving a new generation of digital-savvy businesses with a mobile-first digital business account. They have served over 10,000 businesses in Singapore alone. We find out why businesses are making the switch.

Users love Neobanks for many reasons, you should too!

1. Convenience

From account opening to making transfers, everything can be done 100% online within 5 minutes. With CorpPassMyInfo integration, your account will activate instantly, making it a zero-paperwork process. You can even manage business financials from home (especially in this COVID climate), or on the go, with Aspire.

2. Low and transparent fees

Aspire also offers a very compelling digital account with virtually no fees. That includes no monthly fees, no minimum deposit and no fall-below fees. 

International transfers are also available within the app. Aspire partners with a third party to offer a low and transparent international transfer fee, with the mid-market exchange rate. Full in-depth comparison across business accounts in Singapore can be found here.

The account comes with a free virtual VISA corporate card embedded within the app, so you don’t have to carry around an additional corporate card. The best thing about this card is that they offer cashback on digital spending. Moreover, make international payments with an Aspire Corporate Card with no FX fees! Imagine how much you can save on international spend with Aspire Corporate Card:

3. Additional business services

Aspire Business Account provides an instant credit limit feature, within 48 hours of approval, to support SMEs with working capital to boost business growth, a far cry from the industry-standard weeks’ long process normally found at traditional banks.

Not to mention, the account comes with other tools to help SMEs manage their cash flow, e.g. account insight to monitor your cash flow from anywhere at any time. In an age where you can access virtually any product or service at just a tap, is it any wonder?

4. User-friendliness

The Aspire mobile app, by far, has the best UI that translates to an easy, fast, and delightful user experience. Its design is modern and intuitive because all you need is one single app, which is rarely seen on business banking platforms. Need help? Customer support is a phone call or WhatsApp message away – goodbye answering machines!

The Downsides

However, not everyone is immediately convinced, especially when it comes to trusting a third party with their money. Questions like “are my funds secure or insured?” are often asked. The answer is absolutey yes. When you deposit with Aspire, your funds are kept strictly segregated in a trust account with a tier-1 partner bank, which is guaranteed by the Singapore Deposit Insurance Scheme (SDIC).

The true downside is that digital accounts are not for everyone. Aspire has built for the modern business owner and entrepreneur, and has hence taken a forward looking view. It therefore does not support cheque payments, for example, but instead offers integrations that make your payment flows easier and sync directly with your accounting softwares like Xero for a seamless flow.

Conclusion: Is Neobanking right for your company?

So now you’ve read some of the benefits of neobanking, but is a digital bank actually suited for your business? 

Truth is, you don’t have to be a millennial to appreciate the ease and convenience of being able to conduct your business banking from the palm of your hand, but that is what neobanks are offering with their app-only interfaces.

If you are a smartphone and tech-lover, you will certainly love neobanking. Moreover, if your business involves online marketing or international transactions, you might want to consider Aspire to save more time and money.

Try out the Aspire Account and let us know about your experience in the comments below!