Trust Bank turns profitable in 3.5 years, CEO cites tech and referrals
Singapore's digital bank, a joint venture of Standard Chartered and FairPrice Group, reported $135 million in income for FY2025, achieving profitability earlier this year.
Profitability achieved ahead of schedule
Trust Bank, which commenced operations in Singapore in September 2022, announced its profitability earlier this year. This milestone was reached approximately 3.5 years after its launch, a speed that places it among the top global digital banks, according to CEO Dwaipayan Sadhu.
The bank’s entry four years ago prompted questions regarding its ability to establish a profitable niche in Singapore's competitive banking sector.
Strategy for primary banking status
Trust Bank aimed to become a primary bank for its clients, rather than an occasional secondary provider. To overcome customer inertia in an established market, Trust integrated with daily life through its founding partnership with Standard Chartered (60% stake) and FairPrice Group (40% stake).
This allowed the bank to offer tangible savings on cost of living within the FairPrice ecosystem. Other customer pain points addressed included zero-markup foreign exchange fees and a streamlined three-minute onboarding process. The bank now serves over one million customers, with its credit cards used up to 25 times monthly.
Efficiency drives income growth
The bank's total income grew nearly 40% to $135 million in FY2025, while total operating expenses decreased, a rare combination of hyper-growth and cost reduction. This efficiency stems from a scalable technology platform, automation, and early adoption of artificial intelligence (AI).
Trust Bank's AI-powered chatbot handles 50% of all customer queries, and its predictive complaint system has reduced service escalations by 40%. The bank also benefits from an organic referral engine, with 70% of new customer acquisitions coming from existing clients, reducing acquisition costs to one-seventh of traditional banks.
Singapore’s retail banking market represents an estimated revenue pool of $20 billion, with customers receptive to innovation. In August, Trust Bank launched Singapore’s first “Stockback” credit card, the Freedom Card, which provides investment units as rewards.
Further demonstrating confidence in the digital bank's growth, Standard Chartered recently announced plans to transfer a portion of its credit card and personal loan customers to Trust. This rapid profitability and customer adoption model offers a blueprint for other digital-native financial institutions across Asia seeking to disrupt established markets.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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