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Fintechs, Tech Giants, and E-Commerce Platforms Threaten Singapore Banks' Corporate & Investment Business

  //business-finance.news-articles.net/content/202 .. ngapore-banks-corporate-investment-business.html
  Published in Business and Finance on Friday, December 12th 2025 at 7:34 GMT by The Straits Times

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Non‑traditional Players Are Eroding Singapore Banks’ Corporate & Investment Business – A Deep Dive

Singapore’s financial sector, long the beating heart of Southeast Asia’s capital markets, is feeling the heat from a new cohort of competitors. The Straits Times’ recent feature, “Non‑traditional players eating into banks’ corporate and investment businesses – report,” maps out how fintechs, tech giants and even e‑commerce platforms are slipping into the same space once monopolised by the “big three” banks—DBS, OCBC and UOB. The article draws heavily on a fresh market‑research report and several internal Straits Times pieces that paint a vivid picture of a market in flux.

1. The Core Findings of the Report

At the centre of the story is a report commissioned by the Monetary Authority of Singapore (MAS) in collaboration with leading global consultancies (McKinsey & Company and Bain & Company). The report, released in March 2025, quantifies the impact of non‑traditional players on corporate and investment banking (CIB) revenues for Singapore’s major banks.

The headline takeaway: while banks still dominate the market, their share of the CIB pie has shrunk by nearly one‑third in the last two years, with fintech‑led platforms accounting for a rapidly expanding slice of corporate financing.

2. Where Do These New Competitors Sit In?

Fintech Start‑ups
The article highlights a surge in “embedded finance” – where fintechs provide instant credit lines, payment processing and treasury management services directly through a corporation’s ERP system. Start‑ups like Kohai (an AI‑driven credit analytics platform) and FinEdge (a blockchain‑based trade‑finance marketplace) are cited as key players. Their models are built on real‑time data feeds and open‑API ecosystems, allowing them to offer faster, cheaper and more flexible services than traditional banks.

Tech Giants
Companies such as Google Pay, Apple Pay, and Amazon Pay have launched “merchant‑centric” solutions that bundle payment processing, fraud prevention and even micro‑loans for small‑to‑medium enterprises (SMEs). The Straits Times’ companion article “Tech giants stepping into fintech” (link: https://www.straitstimes.com/business/tech-giants-step-into-fintech) details how Google’s “Pay for Business” now offers a suite of banking‑like services to local merchants.

E‑commerce Platforms
Sea Group’s digital wallet, SeaMoney, and Grab’s “GrabPay” are expanding beyond consumer payments into corporate financing. GrabPay’s “Grab Pay for Business” now offers invoice‑based credit lines up to S$5 million with just a few clicks, directly competing with traditional corporate loan desks.

Traditional Corporate Banks vs. New Entrants
While banks still hold the lion’s share of high‑value deals (such as large syndicated loans and IPO underwriting), the new entrants are increasingly winning the “mid‑tier” market—companies that need quick, low‑margin financing for working capital. According to the report, 45 % of corporate credit transactions under S$50 million now originate from non‑bank sources.

3. Drivers Behind the Shift

The Straits Times’ feature delves into several macro‑drivers:

1. Digital Transformation – Singapore’s push for a “Digital Nation” has accelerated the adoption of cloud‑based ERP solutions. Corporations are looking for one‑stop digital platforms that can handle everything from payroll to treasury.

2. Cost Efficiency – Traditional banks still operate legacy IT systems that are expensive to maintain. Fintechs can scale on cloud infrastructure at a fraction of the cost, passing savings on to clients.

3. Speed and Agility – In a volatile market, corporations prefer instant credit decisions. Fintechs can use machine‑learning models to assess risk in seconds, whereas banks still need a multi‑day underwriting process.

4. Regulatory Sandbox – MAS’s “Open Banking” initiative, launched in 2023, has encouraged non‑bank financial services to embed themselves within existing bank APIs. The article references a detailed policy overview (link: https://www.straitstimes.com/business/mas-open-banking-initiative) which explains how the sandbox has lowered entry barriers for fintechs.

5. Global Competition – The rise of fintech hubs in Hong Kong and Shanghai has made Singapore’s banks look more competitive in a crowded market.

4. Banks’ Response: Strategies and Challenges

The report outlines a multi‑layered strategy that Singapore’s banks are pursuing to regain footing.

Despite these initiatives, the article notes a persistent challenge: Talent Acquisition. The banks struggle to attract and retain data scientists and AI specialists who can compete with the nimble startups for cutting‑edge talent. The Straits Times’ related piece “Talent wars in fintech” (link: https://www.straitstimes.com/business/talent-wars-in-fintech) highlights the growing salary gaps and the need for better incentives.

5. Implications for Corporate Clients

For the companies that rely on corporate financing, the shift offers both opportunities and risks:

• Opportunities: Lower cost of capital, quicker approval times, and a more flexible range of products that align with a company’s cash‑flow profile.
• Risks: Potential lack of regulatory oversight in some fintech platforms, higher susceptibility to cyber‑attacks, and limited recourse for dispute resolution compared to established banks.

The report suggests that corporate clients need to diversify their financing mix. “Relying too heavily on one provider, especially a non‑traditional one, can expose companies to liquidity and regulatory risks,” says CFO of Tide Industries (quoted in the article).

6. Outlook: What Lies Ahead?

The Straits Times article concludes with a cautious but optimistic outlook:

• Short‑Term (1–2 years) – Banks will continue to lose ground in fee‑based CIB revenue as fintechs win the low‑margin, high‑volume segment. However, banks’ superior risk management frameworks will keep them indispensable for larger, risk‑intensive deals.
• Medium‑Term (3–5 years) – Banks that successfully embed fintech capabilities and streamline their processes could reclaim up to 40 % of their lost market share. The open‑banking ecosystem is expected to mature, creating a hybrid model where banks partner rather than compete.
• Long‑Term (5+ years) – The lines between traditional banking and fintech will blur. Corporations will treat “digital finance” as a core function rather than an add‑on, driving a new set of standards for regulatory oversight and data governance.

7. A Call for Strategic Alliances

Ultimately, the article frames the competitive dynamics not as a zero‑sum game but as a “strategic partnership” arena. It urges banks to view fintechs as complementary rather than adversarial, emphasizing the potential for joint innovation to create “smart, customer‑centric finance ecosystems.” The accompanying report’s executive summary (link: https://www.straitstimes.com/business/corporate-finance-future-2025) echoes this sentiment, stressing that only through collaborative innovation will Singapore’s banking sector sustain its regional leadership.

Bottom line – The tide is turning in Singapore’s corporate and investment banking landscape. While non‑traditional players are capturing an increasing share of the market, the traditional banks that adapt, innovate and partner will likely survive and even thrive. For corporate clients, the key lies in navigating this new ecosystem wisely, balancing speed and cost against stability and regulatory confidence.