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DBS is set to overhaul the fee structure for its virtual account custodian services in April, according to Tech in Asia.
The bank will move to a per-account pricing model that could significantly raise costs for larger fintech platforms.
The shift reportedly replaces a flat annual fee, typically capped at around S$10,000, with charges tied to the number of individual customer accounts, industry sources said.
Sources cited a monthly fee of S$1 (US$0.79) per customer account under the new structure.
DBS did not publicly confirm a specific pricing figure in its statement, saying only that fees reflect the cost of additional risk controls and may vary from client to client.
For major payment institutions required to safeguard client funds in segregated accounts under Singapore’s Payment Services Act, the change could turn what was previously a four-digit yearly expense into a six-figure one for platforms with large user bases.
The update centres on virtual accounts, which fintech firms use to assign unique identifiers when processing high volumes of incoming payments.
Previously, many of these accounts were generated dynamically by the firms themselves.
DBS is now migrating selected clients to static accounts issued and managed by the bank, embedding additional screening and fraud controls.
A DBS spokesperson told Fintech News Singapore that the move reflects the growing complexity of round-the-clock domestic and cross-border payment flows and the heightened risk of scams.
“DBS is taking several proactive steps to strengthen controls for enhanced consumer protection. We take a risk-based approach, which includes migrating some fintech platforms from dynamic to static virtual accounts that embed additional controls and screening of end-customers and corporates.
As we seek to balance risk and pricing, any pricing changes reflect the costs of additional risk controls and processes and may vary from client to client. We are committed to closely engaging clients and partners to support their migration.”
Tech in Asia reported that some affected firms have begun trimming services or offboarding users as they assess the financial impact of the new structure.
Featured image: Edited by Fintech News Singapore, based on image by DBS
