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New Paper
2 days ago
- Business
- New Paper
DBS, OCBC and UOB to recognise CPF Life payouts as proof of income in credit card applications
Applicants for DBS, OCBC and UOB credit cards will be able to use their CPF Life payouts as proof of income under policy updates by the banks. Individuals aged 65 and above can do so when they apply for a DBS or OCBC credit card from June 11, while UOB plans to implement the policy in the near future. CPF Life, or CPF Lifelong Income For the Elderly, is an annuity that provides monthly payouts to people based on their savings in their CPF Retirement Account. They can choose to start their payouts from age 65 at the earliest. In formalising the process, DBS said in a statement on June 10 that while some banks do accept CPF Life payouts as income proof on a discretionary basis, the process remains lacking in transparency and assurance. Mr Calvin Ong, DBS' Singapore consumer banking head, said the bank has over 900,000 Singaporean or permanent resident customers aged 65 and above and knows how important CPF payouts are in supporting retirees' daily needs and aspirations. "By recognising the payouts as income, we're making sure seniors continue to have fair access to credit and the cards' accompanying privileges. This move ensures banking remains accessible and meaningful for our senior customers, so they can enjoy a fulfilling retirement," he said. OCBC Bank said in response to The Straits Times' queries that it will allow those aged 65 and above to apply for any OCBC credit card using CPF Life payouts as proof of income from June 11. Mr Joseph Wong, managing director of consumer credit risk management at OCBC, said the number of seniors applying for credit cards is generally low, as most retirees typically already have credit cards. "However, we hope this announcement puts to ease any concerns seniors may have about getting access to credit even after they have stopped working," he said. Ms Jacquelyn Tan, UOB's head of group personal financial services, told ST that the new policy will be implemented in the "near future", without specifying a timeline. More retirees will be able to benefit from the perks offered by UOB credit cards as they enjoy the fruits of their labour following retirement, she said. The banks' push comes as the Monetary Authority of Singapore (MAS) confirmed that CPF Life payouts can be considered by banks as an income source. MAS rules state that people over 55 must have an annual income of at least $15,000 when applying for unsecured loan facilities such as credit cards, even if they do not have a salary or traditional income. While MAS does not prescribe what income banks must consider when assessing a retiree's eligibility, it says regular payout streams such as rent, interest, dividends or annuity payments from CPF Life or similar products can be considered. Borrowers must prove that they are earning such income in order to qualify. For instance, those who hit the age of 65 in 2025 will receive monthly payouts of up to $1,300, or $15,600 a year, if they had set aside at least $161,000 as their full retirement sum a decade ago. Besides income, individuals over 55 can also qualify for credit cards if they have total net personal assets exceeding $750,000 or if they have a guarantor with an annual income of at least $30,000. The eligibility of older folk for credit cards was highlighted in The Straits Times Forum recently when a 64-year-old retiree wrote about having an existing card cancelled when he tried to increase its credit limit for an overseas holiday.
AsiaOne
2 days ago
- Business
- AsiaOne
More seniors to benefit as 3 local banks recognise CPF Life payouts as income proof for credit card applications, Money News
More seniors aged 65 and above will be able to apply for credit cards as DBS, UOB and OCBC will recognise CPF Life payouts as income proof. According to a statement on Tuesday (June 10), DBS said that the policy kicks in from June 11 (Wednesday). The move follows the Monetary Authority of Singapore's recent confirmation that banks can consider CPF Life payouts as a valid source of income for retirees above 65 years old interested in applying for unsecured loan facilities, such as credit cards. OCBC Bank will similarly allow seniors aged 65 and above applying for any OCBC credit cards to use CPF Life payouts as income proof beginning June 11, reported The Straits Times (ST). "DBS' official and clear recognition of CPF Life payouts acknowledges these monthly payouts as reliable, lifelong income, giving seniors fairer access to credit options that may have previously been out of reach," the bank said, adding that CPF Life payouts are now on par with other typical income proofs. "We hope this announcement puts to ease any concerns seniors may have about getting access to credit even after they have stopped working," Joseph Wong, managing director of consumer credit risk management at OCBC said, adding that the number of seniors applying for credit cards in generally low. UOB said it will begin recognising CPF Life payouts as income proof for seniors in the "near future", though a date has not been set. Prior to this, banks would assess income for credit card applications based on salary, rental and investment earnings, while CPF Life payouts were only accepted on a discretionary basis, making it harder for retired seniors to get approval for their applications. The new policy complements findings from a recent DBS study that showed how CPF payouts cover more than half of retirees' expenses, and contributes to the bank's efforts to address the needs of Singapore's ageing population. "By recognising the payouts as income, we're making sure seniors continue to have fair access to credit and the cards' accompanying privileges," said Calvin Ong, Head of Consumer Banking Group at DBS. More retirees will be able to benefit from the perks offered by UOB credit cards as they enjoy the fruits of their labour following retirement, Jacquelyn Tan, UOB's head of group personal financial services, told ST. In April, a 64-year-old wrote in to The Straits Times' forum sharing his experience of being denied a credit card from a local bank despite providing ample proof of income. At the time, he submitted a CPF statement showing that he had exceeded the Enhanced Retirement Sum of $426,000, indicating that he would receive a CPF payout of over $3,000 monthly once he turns 65. The bank denied his application, asking him to provide a bank statement with a cash balance of $750,000 instead. [[nid:718533]]
Business Times
2 days ago
- Business
- Business Times
DBS, OCBC and UOB to recognise CPF Life payouts as income in credit card applications
[SINGAPORE] – Applicants for DBS, OCBC and UOB credit cards will be able to use their CPF Life payouts as proof of income under policy updates by the banks. Individuals aged 65 and above can do so when they apply for a DBS or OCBC credit card from June 11, while UOB plans to implement the policy in the near future. CPF Life, or CPF Lifelong Income For the Elderly, is an annuity that provides monthly payouts to people based on their savings in their CPF Retirement Account. They can choose to start their payouts from age 65 at the earliest. In formalising the process, DBS said in a statement on June 10 that while some banks do accept CPF Life payouts as income proof on a discretionary basis, the process remains lacking in transparency and assurance. Calvin Ong, DBS' Singapore consumer banking head, said the bank has over 900,000 Singaporean or permanent resident customers aged 65 and above and knows how important CPF payouts are in supporting retirees' daily needs and aspirations. 'By recognising the payouts as income, we're making sure seniors continue to have fair access to credit and the cards' accompanying privileges. This move ensures banking remains accessible and meaningful for our senior customers, so they can enjoy a fulfilling retirement,' he said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up OCBC Bank said in response to queries that it will allow those aged 65 and above to apply for any OCBC credit card using CPF Life payouts as proof of income from June 11. Joseph Wong, managing director of consumer credit risk management at OCBC, said the number of seniors applying for credit cards is generally low, as most retirees typically already have credit cards. 'However, we hope this announcement puts to ease any concerns seniors may have about getting access to credit even after they have stopped working,' he said. Jacquelyn Tan, UOB's head of group personal financial services, said the new policy will be implemented in the 'near future', without specifying a timeline. More retirees will be able to benefit from the perks offered by UOB credit cards as they enjoy the fruits of their labour following retirement, she said. The banks' push comes as the Monetary Authority of Singapore (MAS) confirmed that CPF Life payouts can be considered by banks as an income source. MAS rules state that people over 55 must have an annual income of at least $15,000 when applying for unsecured loan facilities such as credit cards, even if they do not have a salary or traditional income. While MAS does not prescribe what income banks must consider when assessing a retiree's eligibility, it says regular payout streams such as rent, interest, dividends or annuity payments from CPF Life or similar products can be considered. Borrowers must prove that they are earning such income in order to qualify. For instance, those who hit the age of 65 in 2025 will receive monthly payouts of up to $1,300, or $15,600 a year, if they had set aside at least $161,000 as their full retirement sum a decade ago. Besides income, individuals over 55 can also qualify for credit cards if they have total net personal assets exceeding $750,000 or if they have a guarantor with an annual income of at least $30,000. The eligibility of older folk for credit cards was highlighted in The Straits Times Forum recently when a 64-year-old retiree wrote about having an existing card cancelled when he tried to increase its credit limit for an overseas holiday. THE STRAITS TIMES
Straits Times
2 days ago
- Business
- Straits Times
DBS, OCBC to recognise CPF Life payouts as proof of income in credit card applications
The banks' push comes as MAS confirmed that the CPF Life payout can be considered by banks as an income source. PHOTO: ST FILE SINGAPORE – Applicants for DBS and OCBC's credit cards will be able to use their CPF Life payouts as proof of income under a policy update by the banks. Individuals aged 65 and above can do so from June 11. CPF Life, or CPF Lifelong Income For the Elderly, is an annuity that provides monthly payouts to people based on their savings in their CPF Retirement Account. They can choose to start their payouts from age 65 at the earliest. In formalising the process, DBS said in a statement on June 10 that while some banks may accept CPF Life payouts as income proof on a discretionary basis, the process remains lacking in transparency and assurance. Mr Calvin Ong, DBS's Singapore consumer banking head, said the bank has over 900,000 Singaporean or permanent resident customers who are aged 65 and above and know how important CPF payouts are in supporting retirees' daily needs and aspirations. 'By recognising the payouts as income, we're making sure seniors continue to have fair access to credit and the cards' accompanying privileges. This move ensures banking remains accessible and meaningful for our senior customers, so they can enjoy a fulfilling retirement,' he said. OCBC Bank said in response to The Straits Times queries that it will also allow those aged 65 and above to apply for any OCBC credit card using CPF Life payouts as proof of income from June 11. Mr Joseph Wong, managing director of consumer credit risk management at OCBC, said the number of seniors applying for credit cards is generally low, as most retirees typically already have credit cards. 'However, we hope this announcement puts to ease any concerns seniors may have about getting access to credit even after they have stopped working,' he said. The banks' push comes as the Monetary Authority of Singapore (MAS) confirmed that the CPF Life payout can be considered by banks as an income source. MAS rules state that those who are over 55 must show they have an annual income of at least $15,000 when applying for new unsecured loan facilities such as credit cards, even if they don't have a salary or the traditional income required. While the MAS does not prescribe what income banks must consider when assessing a retiree's eligibility, it says that regular payout streams such as rent, interest, dividends or annuity payments from CPF Life or similar products can be considered in such assessments. Borrowers must prove that they are earning such income in order to qualify. For instance, those who hit the age of 65 in 2025 will receive monthly payouts of up to $1,300, or $15,600 a year, if they had set aside at least $161,000 as their full retirement sum a decade ago. Besides income, individuals over 55 can also qualify for credit cards if they have total net personal assets exceeding $750,000 or if they have a guarantor with an annual income of at least $30,000. The eligibility of older folk qualifying for credit cards was highlighted in The Straits Times Forum recently when a 64-year-old retiree wrote about his plight of having an existing card cancelled when he tried to increase its credit limit for an overseas holiday. Join ST's WhatsApp Channel and get the latest news and must-reads.
New Paper
21-05-2025
- Business
- New Paper
New measures by local banks to prevent stolen card details from being added to mobile wallets
A new mobile banking app feature will allow DBS and POSB card holders to control who can add their cards to mobile phone wallets from mid-May. The move is part of the local banks' efforts to stop scammers from adding phished card details to their mobile wallets - like Apple Pay and Google Pay - for fraudulent spending, as such cases climb, said DBS on May 8. Over 650 police reports were lodged in the last quarter of 2024, totting up to losses of at least $1.2 million, said DBS, citing police data. With this launch, users will no longer be able to add card details to their device for contactless payment until they switch on the "mobile wallets" toggle in the DBS banking app. The switch will be "off" by default. After turning it on, users have 10 minutes to add their card details before the switch automatically turns off again. "By introducing the deliberate pause, we enable customers to be alert when performing transactions," said Mr Calvin Ong, DBS Singapore's head of consumer banking. There are more than 6.5 million DBS and POSB debit and credit cards in circulation here. Previously, anyone, including grifters, could add stolen card details to their phones if they had also phished the user's SMS one-time password (OTP). This switch is the latest addition to the bank's raft of security control features in its app, including a money lock tool launched in late 2023 that lets customers keep sums of money from being transferred digitally. "Joint vigilance with our customers is essential to combating scams and we will continue to expand our suite of self-managed security features, as well as anti-scam educational resources and community events, to empower our customers to take control of their security," said Mr Ong. Other banks are on it too. UOB and OCBC are set to launch by July an in-app digital token authentication step for adding cards to mobile wallets, said spokesmen for the banks. This retires the need for SMS OTPs, which are vulnerable to phishing. Since 2023, OCBC has actively removed cards linked to multiple mobile wallets, when detected, said Mr Beaver Chua, the bank's head of anti-fraud, group financial crime compliance. Those unfamiliar with mobile wallets can call the ScamShield Helpline (1799) for assistance.
