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It seeks to disprove doubters of digital banking, which has struggled to live up to the hype.
MariBank is using its Shopee connection to tap both retail consumers and small businesses to get ahead in the digital banking race in Singapore.
Singapore’s newest digital bank is banking on tech-savvy citizens to disprove doubters of digital banking, which has struggled to live up to the hype in nations where people lack regular access to financial services.
“We’re the only digital bank in Singapore that has rolled out products to the consumer and the SME (small and medium enterprises) segments, catering to the underserved mass market consumers and micro [and] small business owners,” MariBank Singapore CEO Natalia Goh told Asian Banking & Finance.
Goh, who took over MariBank in August after serving as chief operating officer at rival Trust Bank, said being a part of a strong ecosystem has helped in attracting and retaining customers.
MariBank’s decision to tie itself with the e-commerce platform follows the footsteps of the few digital banks that eventually started making money.
Of the 453 digital banks globally, only 23 are profitable, according to a June 2024 report by the Boston Consulting Group. More than half of them is in Asia and are often part of an integrated ecosystem.
Even then, it could take as long as seven years for a digital bank to achieve profitability, it said.
Although God did not disclose any targets for the Sea Group’s digital bank in Singapore, she mentioned that they are focused on laying a strong foundation for its “long-term success.”
“We aim to create a flywheel effect within the ecosystem to drive user stickiness,” she said in an emailed reply to questions.
MariBank’s deposit and card services offer incentives when used to pay for Shopee purchases. A user’s savings account can be tied to their Shopee accounts so they can enjoy exclusive rewards.
MariBank credit card holders also have instant check-out service on the Shopee app. Cardholders also enjoy 5% unlimited Shopee Coins with the Mari Credit Card Instant Checkout.They can also enjoy 1.7% unlimited cashback in real-time once transactions are posted.
This has helped the bank attract new customers since it allows smoother financial tracking for Shopee businesses and cuts the hassle of manual withdrawals.
“We see two in three customers making their first transactions [using the Mari credit card] within their first week of onboarding, and one in two customers adding [it] to their Apple Pay or Google Pay wallets,” Goh said.
One dollar investment
MariBank is also leveraging its Shopee link to target SMEs, offering loans to Shopee sellers with linked payment methods.
Sellers who open a Mari business account are offered one free withdrawal a day.
Going beyond its Shopee-tied businesses, MariBank also offers investment services, with one in three of its users using Mari Invest as of April, Goh said.
Mari Invest is an account that offers access to investment products that provide higher projected returns compared with traditional savings alternatives. It has crossed over S$500m in assets under management less than a year since its launch in November 2023.
Users only need S$1 to start investing, significantly lowering the barrier to entry for beginner investors, Goh said.
Mari Invest’s Lion-MariBank SavePlus fund, created in partnership with asset management firm Lion Global Investors, invests in low-risk investments such as bills issued by the Singapore’s central bank, money market and high-quality bond funds.
Investors can withdraw their investments anytime and can track daily returns through the mobile app.
MariBank also offers business accounts and loans, promising zero banking fees and a 2.5% yearly interest.
Mari Business Account offers no transfer fees through PayNow or when making local transfers. There are also zero fall-below fees, no account fees, and no minimum balance.
Goh shared that the bank is planning to roll out more loan products and payment features targeting the consumer and SME segments in the coming months.
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