The Allure of Non-Local Banks in Singapore Do You Really Know?

Singapore’s Enduring Role in the Global Financial Landscape

In the global financial landscape, Singapore has always occupied a prominent and position. As one of the world's leading financial centers, Singapore is not only home to three major local banking giants - DBS Bank, OCBC Bank, and UOB - but also hosts numerous foreign banks that have established branches or regional headquarters within its borders. These international financial institutions contribute diversity and vitality to Singapore’s financial ecosystem, offering both corporate and individual clients a broader range of services.

Defining Foreign Banks and Their Development Context

Foreign banks are typically defined as banks registered outside of Singapore that operate locally through branches or subsidiaries. In recent years, with the Monetary Authority of Singapore MAS continuously refining its regulatory framework and introducing policies aimed at attracting foreign investment, more and more international banks have turned their attention to this dynamic city-state. According to the latest data released by MAS, as of the end of 2025, Singapore was home to over 150 licensed foreign banking institutions, spanning retail banking, corporate banking, and private banking. Against the backdrop of increasingly frequent cross-border financial transactions, foreign banks have become preferred partners for many high-net-worth individuals and multinational corporations due to their global networks, professional expertise, and flexible product designs.

Unique Strength 1 Global Perspective Combined with Localized Service

One notable feature of foreign banks is their ability to integrate global resources with deep insights into the local market. For example, Switzerland’s UBS Group and Credit Suisse both operate private banking divisions in Singapore, focusing on providing customized wealth management and asset succession planning for affluent families across Asia. These banks combine strong international experience with tailored adaptations to meet the specific needs of Southeast Asian markets. Meanwhile, Western banks such as Citibank and HSBC have established regional operations in Singapore to serve corporate clients across the Asia-Pacific region. By leveraging their parent banks’ global capabilities, they offer comprehensive solutions including trade finance, foreign exchange management, and cross-border mergers and acquisitions.

Unique Strength 2 Innovation and Product Diversity

Compared to local banks, some foreign banks demonstrate greater agility and ambition in adopting financial technology. American Express Bank, for instance, has introduced premium credit card products in Singapore that support multi-currency settlements and come bundled with extensive travel insurance and VIP benefits, making them especially popular among business travelers. At the same time, emerging digital banks are also gaining traction. The European Investment Bank EIB, headquartered in Luxembourg, recently announced plans to establish a green finance lab in Singapore, aiming to develop innovative financing tools for sustainable development projects. This initiative highlights the forward-looking strategies adopted by foreign banks in response to climate change and growing demand for ESG Environmental, Social, and Governance investments.

Unique Strength 3 Flexibility and Personalized Services

For high-net-worth individuals, foreign banks often offer more adaptable service models. Being less constrained by Singapore’s domestic regulatory system, certain foreign banks can design more flexible product structures to meet unique client demands. Some offshore banks, for instance, allow clients to open multi-currency accounts and provide tax planning advice to help optimize global asset allocation. Moreover, foreign banks place significant emphasis on enhancing customer experience. Many offer dedicated relationship managers, ensuring that key clients receive personalized, one-on-one professional support. This tailored approach represents a major differentiator from traditional banking models.

Recent Developments Continued Expansion of Foreign Banks in Singapore

Since the second half of 2025, several international banks have announced expanded operations in Singapore. According to reports from Lianhe Zaobao, Morgan Stanley plans to increase its Singapore workforce by 30% over the next three years, with a particular focus on strengthening its private wealth management and asset management divisions. This move signals a strategic step toward deeper engagement in the Asian market. Additionally, Japan’s MUFG Bank recently completed a strategic investment in a local fintech startup, aiming to enhance its digital banking capabilities through local technological innovation. These developments further reinforce Singapore’s status as a key hub for foreign banks in the Asia-Pacific region.

Conclusion

From a global perspective, Singapore’s ability to attract a large number of foreign banks stems from its political stability, well-developed financial infrastructure, and abundant pool of skilled talent. In turn, these foreign banks enrich the local financial ecosystem by introducing international standards, cutting-edge innovations, and personalized experiences. Looking ahead, as economic globalization continues to deepen, foreign banks will continue to play a vital role - serving as crucial bridges connecting Singapore with the rest of the world.