SINGAPORE (Sept 1): Standard Chartered plc's (StanChart) joint venture with an arm of Singapore's biggest trade union group is starting digital banking services in the city-state, adding to rivalry in the space where tech giants are also seeking to make their mark.

Trust Bank, in which the UK firm holds 60%, is offering savings accounts, credit cards, and insurance products, targeting workers and their families with benefits aimed at cushioning the pain of rising inflation, according to a statement by the firms on Thursday. Fairprice Group, which runs supermarkets and food courts across the island, holds the remaining stake in the venture.

Singapore is set to see intensifying competition in financial services as the likes of Jack Ma's Ant Group Co and Grab Holdings Ltd challenge the area traditionally controlled by lenders led by DBS Group Holdings Ltd, the country's largest. For StanChart, backed by state investor Temasek Holdings Pte, this will be its second digital bank in Asia, following the launch of Mox in Hong Kong in 2020.

The Trust Bank launch follows close on the heels of Grab and Singapore Telecommunications Ltd, which earlier said their banking app would roll out next week. That group obtained one of two full digital banking licences in 2020 that allow deposit taking and serve both retail and corporate customers. The other licence holder is Sea Ltd, which has not disclosed much details of its plans yet. Unlike the tech firms, StanChart does not need such a permit because of its banking status.