Between August 2018 and August 2019, more than 65,000 businesses were incorporated in Singapore.
Incorporation is only the start of the process business owners go through to set up a company, after which they take their next steps like setting up a bank account, stocking inventory and getting payment systems running.
Usually, banks in Singapore process applications to open business accounts at least one day after incorporation.
OCBC Bank has announced today (4 November 2019) that they will allow Singapore startups to skip waiting a day, and open their business banking accounts immediately after incorporation.
This is possible with the rollout of a new Application Programming Interface (API) between OCBC and global information services provider Experian.
With the API, OCBC is able to validate a startup’s business profile issued by the Accounting and Corporate Regulatory Authority (ACRA) through Experian once incorporation is done.
Business owners can also apply online using their details on Singapore’s data repository MyInfo by logging in to their SingPass, without the need for physical paperwork.
“Getting a bank account is the first critical step that startups need to take in order to get their businesses up and running,” said OCBC.
Business owners need this in order to start accepting customer payments or making CPF contributions.
The bank’s Head of Emerging Business and Commercial Banking Cash Christie Chu added, “Banks play a key role in the startup and SME ecosystem partly because the bank account is at the centre of business operations.”
Given this role, and OCBC’s standing as the “banker to more than 1 in 2 SMEs in Singapore”, Chu said OCBC wants to streamline the account opening process in order to help startups “begin running their businesses as soon as possible”.
Featured Image Credit: OCBC Bank