Digital Account Opening for Startups Coming to Singapore
OCBC Bank will once again leverage the national data repository MyInfo, to enable small and medium enterprise (SMEs) owners to open business accounts and receive their account numbers instantly.
This follows the Bank’s use of MyInfo to roll out the first digital instant account opening service in Singapore for one of its personal accounts – OCBC 360 Account – in June 2018. Since then, there has been a three-fold increase in the number of OCBC 360 accounts opened digitally on a month-on-month basis.
Currently, there is no digital instant account opening service for businesses in Singapore, but MyInfo can help to change this.
With the SME owner’s consent, the bank will be able to access details from his MyInfo profile for the purpose of the application, eliminating the need for additional personal details to be keyed in and for supporting documents to be submitted for the authorization of identity.
The application will also be assessed by OCBC Bank’s digital know-your-customer (KYC) process.
Thereafter, SME owners will find out the status of the application. If approved, an account number will be shared onscreen and via text message instantly. This improves on the current industry standard of a one-day turnaround for digital account opening. With their account numbers, SMEs can start collecting payments.
The account opening process is done via the Bank’s website, making it easy and convenient for SME owners to apply.
This instant account opening service for businesses will be rolled out to those helmed by one or two individuals who are opening a Business Growth Account or Business Entrepreneur Account – two of the bank’s flagship business accounts.
Based on OCBC Bank’s analysis, businesses with this one or two-man structure accounted for about 7 in 10 businesses in Singapore as at 31 December 2017.
“Using MyInfo, SMEs just need a few minutes to complete an online application, and instantly, know the results of the application and obtain their new business account number. Businesses sometimes ink deals and then scramble to open an account to receive the payment so this is a convenient and practical solution. And with 70% of the businesses incorporated in Singapore having a one or two-man structure, our service will benefit a majority of new SMEs. ‘Instant’ is the way forward for the industry. Since August, businesses have been able to collect funds instantly with PayNow and soon, SMEs will be able to open a business account instantly. More such projects are in the pipeline as we continue to listen to our customer’s needs and then innovate in order to help them grow their businesses.” – Head of Emerging Business, Global Commercial Banking, OCBC Bank, Ms. Christie Chu.