Singapore’s banking landscape is changing rapidly, with the rise of embedded finance, real-time cross-border payments, and AI-driven fraud prevention.
Embedded finance is seamlessly integrating financial services into non-financial platforms
Cross-border payments are revolutionised by blockchain and real-time APIs
AI is boosting fraud detection and customer service, enhancing security
Singapore’s financial sector is embracing technology and innovation to remain competitive. Traditional banks are partnering with non-banking platforms to create a more integrated, seamless experience for consumers and businesses.
The rise of embedded finance
Embedded finance (EmFi) is popular in Singapore, particularly in e-commerce . Companies like Grab and Shopee have introduced embedded financial products known as "buy now, pay later" (BNPL), thus promoting increased access to credit among consumers without using traditional banking services. This forms a new horizon for financial services delivery, directly offering services through everyday digital platforms.
OCBC Bank has also implemented embedded finance through its partnership with NTUC FairPrice, where consumers can gain access to banking services while inside stores. The FairPrice Plus Visa Card presents integrated rewards and benefits for all purchases made in financial or retail stores. Such partnerships change customer experiences and bring more value at the point of sale, as well as ensure the efficiency of managing their finances.
Real-time cross-border payments
Singapore is one of the centres for cross-border transactions. Technology has been advancing these transactions, making them faster and more efficient. Institutions like DBS Bank and UOB have been major modernisers of the payment infrastructure. For instance, DBS launched DBS MAX to enable real-time QR-code payments in Southeast Asia. In addition, the blockchain technology-based payment network RippleNet has enabled lower costs and reduced time involved with cross-border remittance in institutions' product offerings.
This serves as a great vehicle for attaining real-time cross-border payments, not to mention the harmonisation of financial data across borders using the ISO 20022 messaging standard. Those not adopting real-time payment schemes will be left behind as businesses increasingly require faster and cheaper modes of payment.
Generative AI and fraud prevention
Singapore sits at the forefront of cross-border transactions, and technological advancements are streamlining these processes like never before. A key development is the rise of RippleNet, a blockchain-powered payment network that has revolutionised the way institutions handle cross-border remittances. Banks like DBS and UOB have embraced this technology, significantly reducing the costs and delays traditionally tied to international transfers. By cutting through transmission times, RippleNet ensures that recipients receive funds almost instantly, setting a new standard for efficiency in global payments.
The implementation of the ISO 20022 messaging standard strengthens cross-border payments by harmonising financial data across borders. Institutions that do not use these real-time payment systems will fall behind, as businesses are in ever-increasing demand for faster and cheaper payment alternatives.