OCBC Bank's new account for start-ups has lowest initial deposit and low minimum monthly balance
Singapore, 22 November 2016 – OCBC Bank has launched a new current account for the 50,000 start-ups established on average each year. The OCBC Business Growth Account has the lowest initial deposit in the market, at S$500, and requires a low minimum average monthly account balance of S$3,000.
According to an OCBC survey conducted in September 2016, about 65% of new businesses open a banking account within the first three months of incorporating the business. The two key factors these business owners consider when choosing a banking account are:
Based on this feedback, the OCBC Business Growth Account was introduced to offer the following benefits:
1. Lowest initial deposit of S$500
2. Low minimum average monthly account balance of S$3,000
(the fall-below fee is waived for the first six months)
Data from SPRING Singapore’s Department of Statistics showed that the number of start-ups has almost doubled over 10 years, from 26,500 start-ups in 2005 to 48,000 start-ups in 2015.
Said Mr Eric Ong, Head of Emerging Business, Global Commercial Banking, OCBC Bank: "Since one out of two businesses banks with us, we know their needs intimately. We are aware that start-ups have fewer and simpler transactional needs. For most start-ups, cash flow is always an issue and to set aside S$1,000 for an initial deposit may be tough for some of them. As such, a simple banking account will meet their requirements. Notably, our Business Growth Account has the lowest initial deposit and requires a low minimum monthly balance. This will be useful for start-ups as their cash will not be locked up in their account to meet the minimum monthly balance required. Instead, they can use the funds for their day-to-day operations."
Said Mr Shawn Yeo, Founder of Seed and Soil: "For start-ups like myself, I just want to focus on getting my business up and running. So it is important that I do not have to spend too much time maintaining my banking account in order not to incur unnecessary banking charges, other than using it to make payments and keeping track of my incoming and outgoing funds. I chose to open a business account with OCBC as only S$500 is required for the initial deposit, and I only have to maintain a low minimum monthly balance. This frees up more money which I can use for my business needs."
OCBC Bank-Singtel Partnership offers business convenience, savings and security for start-ups
Business owners can also benefit from OCBC Bank’s tie-up with telecommunications service provider Singtel. Businesses that open a banking account with OCBC Bank can also sign up for a business mobile plan with Singtel instantly, at competitive rates. These OCBC customers will also enjoy the added security of Singtel’s mobile security application at no charge.
This partnership between OCBC Bank and Singtel in supporting the SME community is not the first for both organisations. Singtel is one of the partners behind the annual Emerging Enterprise Award co-organised by OCBC Bank and The Business Times. The Award gives recognition to outstanding emerging businesses.
Said Mr Eric Ong: "For business owners who are constantly on the move, the mobile phone has become an indispensable tool that enables them to have quick access to information and banking services, and empowers them to make decisions on the go. As such, our collaboration with Singtel is an extension of our partnership in support of new businesses in their growth journey. We look forward to partnering Singtel in more initiatives that will benefit our local SMEs."
Said Mr Andrew Lim, Managing Director of Business Group, Group Enterprise at Singtel: "Our tie-up with OCBC Bank gives business owners the convenience of applying for business mobile plans at the point they open a new banking account. By bundling in Singtel’s mobile security solutions, we also enable them to protect their mobile devices against cyber threats, so they may work and transact online safely.