Banking innovation in Southeast Asia sharpens as RHB Singapore bets on digitization and wealth
RHB Singapore, the regional arm of Malaysia’s RHB Banking Group, has unveiled an ambitious plan to achieve a 12% return on equity (ROE) by 2027. The strategy hinges on expanding digital finance and wealth management capabilities—core areas fueling the bank’s rapid growth across ASEAN.
The move reflects Singapore’s pivotal role in RHB’s cross-border strategy and showcases how regional banks are innovating to stay competitive in an evolving financial landscape. With a 95.6% year-on-year jump in pre-tax profit, the bank is signaling strong momentum.
From branch network to digital-first banking
Established in Singapore in the 1960s, RHB Bank has evolved from a traditional branch-led model into a regional banking player increasingly focused on digital transformation. While its parent company is headquartered in Kuala Lumpur, Singapore has become an essential testbed for fintech adoption and affluent customer growth.
As of mid-2025, RHB Singapore operates five retail branches and one premier banking centre, but its digital banking services are driving new customer acquisition. According to the bank’s own disclosure, it posted a pre-tax profit of S$98.7 million (approximately US $72 million) in H1 2025, up significantly from 2024 levels.
This performance aligns with Singapore’s broader positioning as a hub for wealth and innovation in Southeast Asia. As Monetary Authority of Singapore (MAS) policies continue to encourage fintech development, RHB is seizing the opportunity to integrate its operations more deeply into Singapore’s financial ecosystem.
Wealth, fintech, and regional growth
To meet its 12% ROE goal, RHB Singapore is aggressively growing its digital capabilities. The bank is investing in AI-enabled customer service tools, mobile-first banking solutions, and scalable fintech partnerships. These tools are being rolled out in tandem with a wealth management push aimed at mid-to-affluent clients in Singapore and beyond.
Moreover, RHB is aligning its ASEAN strategy around cross-border wealth flows. As part of this plan, it recently launched new regional investment products and is strengthening links with RHB Thailand and RHB Indonesia. These efforts mirror similar moves by DBS and Maybank, reflecting a trend of ASEAN banks evolving into integrated financial platforms.
RHB’s expansion strategy is also supported by its rising operational efficiency. With cost-to-income ratios improving and non-performing loans remaining below industry averages, the bank is well-positioned to scale further. Its digital expansion allows for high-margin growth without significant physical infrastructure investment.
A clear signal of regional banking transformation
RHB’s Singapore strategy is more than a local play—it represents a broader evolution in ASEAN banking. By aiming for double-digit ROE through technology and wealth services, the bank is responding to market demand for agile, personalized, and cross-border financial solutions.
Moreover, this move reinforces Singapore’s position as a financial centre for Southeast Asia. RHB’s renewed commitment echoes similar investments by regional banks like UOB and OCBC, which are also betting on AI-powered tools, ESG-focused investment portfolios, and multi-market expansion.
What distinguishes RHB is its measured approach. Instead of launching a digital-only bank, it is layering fintech into its existing high-performing units, enabling hybrid growth. This blend of physical service and digital efficiency could become a blueprint for mid-tier banks across ASEAN.
Can RHB deliver on its 12% ROE promise?
Looking ahead, RHB Singapore’s ability to achieve its 12% ROE target by 2027 will depend on three key factors: digital adoption, regional wealth flows, and regulatory coordination. Fortunately, Singapore’s regulatory environment is among the most supportive for innovation in banking, which gives the bank a strong foundation.
As fintech usage among ASEAN consumers continues to rise, RHB’s digital investments could yield higher margins and deeper customer engagement. Additionally, rising affluence in Indonesia, Vietnam, and Thailand will likely increase demand for regional wealth products managed out of Singapore.
RHB has also hinted at forming strategic alliances with external partners to strengthen its fintech edge and reduce time-to-market for new offerings. If these partnerships deliver, RHB could outperform its peers in both ROE and customer lifetime value.
By betting on technology, trust, and regional synergies, RHB Singapore is reshaping its role from a supporting subsidiary to a growth engine for the entire group. Its 12% ROE goal is bold—but increasingly, it looks achievable.
