Hi there!
Im not too sure about the various foreign banks so I can only share my experience with the local banks. I think it all comes down to convenience.
Some context, when i opened my first SME account, I was using OCBC. And then I used DBS SME for my second SME account. We have dealings with overseas client.
In my experience, as our clients are mostly in Singapore, going with a local bank is much more convenient for us as we will need to regularly visit our local bank for off the counter services (cheque facilities, forms endorsements, updates of particulars) etc. If you are using a foreign bank, they might not have as big a network of bank outlets as the local banks. That will probably be the main reason why most businesses choose local banks over foreign banks. Foreign banks might have longer clearing period for banking transactions too.
When we deal with overseas clients, banking matters are also quite minimal as they can just do the TT into our local bank account. It also helps that DBS is the largest bank in Asia so most transactions will go through.
In my mind, perhaps you are considering using other foreign banks because of better rates for some of their products (credit facilities). Using a local bank doesnt stop you from using the facilities of other foreign banks.
For us, our Malaysia office uses Maybank (the biggest local network in KL), and for our experience, even if we wanted to use Maybank Singapore, we understand that both the Maybank in Msia and Singapore are operated differently. You cant bank in a Malaysia Maybank cheque via a Singapore Maybank.
So it's hard to find a reason why someone would want to use a foreign bank account as their primary bank account. Maybe one can consider using certain facilities of a foreign bank, but a local bank as a primary bank account definitely brings more convenience.
Since we are talking about this, in my experience, DBS SME is slightly better than OCBC SME (used / using both), because somehow there are more people using DBS personal / SME account, hence when you do your bank transfers to your supplier / employee / invoice payments you save up more - DBS to DBS fast transfers do not need fees while interbank transfers usually charges a $0.50 service fee. :)
Hi there!
Im not too sure about the various foreign banks so I can only share my experience with the local banks. I think it all comes down to convenience.
Some context, when i opened my first SME account, I was using OCBC. And then I used DBS SME for my second SME account. We have dealings with overseas client.
In my experience, as our clients are mostly in Singapore, going with a local bank is much more convenient for us as we will need to regularly visit our local bank for off the counter services (cheque facilities, forms endorsements, updates of particulars) etc. If you are using a foreign bank, they might not have as big a network of bank outlets as the local banks. That will probably be the main reason why most businesses choose local banks over foreign banks. Foreign banks might have longer clearing period for banking transactions too.
When we deal with overseas clients, banking matters are also quite minimal as they can just do the TT into our local bank account. It also helps that DBS is the largest bank in Asia so most transactions will go through.
In my mind, perhaps you are considering using other foreign banks because of better rates for some of their products (credit facilities). Using a local bank doesnt stop you from using the facilities of other foreign banks.
For us, our Malaysia office uses Maybank (the biggest local network in KL), and for our experience, even if we wanted to use Maybank Singapore, we understand that both the Maybank in Msia and Singapore are operated differently. You cant bank in a Malaysia Maybank cheque via a Singapore Maybank.
So it's hard to find a reason why someone would want to use a foreign bank account as their primary bank account. Maybe one can consider using certain facilities of a foreign bank, but a local bank as a primary bank account definitely brings more convenience.
Since we are talking about this, in my experience, DBS SME is slightly better than OCBC SME (used / using both), because somehow there are more people using DBS personal / SME account, hence when you do your bank transfers to your supplier / employee / invoice payments you save up more - DBS to DBS fast transfers do not need fees while interbank transfers usually charges a $0.50 service fee. :)