A survey published today finds that Singapore consumers want more banking choices, and are keen on trying out digital banks set to launch in the city-state later this year.
Nearly two-thirds of Singapore consumers (65 percent) are interested in opening digital bank accounts, an increase of 13 percent from the year before, according to the 2019 Singapore Retail Banking Satisfaction Study, published today by market research firm J.D. Power.
The survey, which was conducted among 2,515 retail banking customers in Singapore from May to June 2019, found that while non-branch users are receptive to digital banks (64 percent), regular branch users are just as willing to using digital banks (66 percent). In addition, the survey found that the use of mobile apps for banking grew from 52 percent last year to 65 percent in 2019, while the use of other channels remained constant.
As digitalization grows, lower levels of human interaction is also changing the relationship people have with their banks – only 29 percent of respondents said they have a close relationship with their bank.
New Era of Competition
The Monetary Authority of Singapore (MAS) set to issue up to five digital banking licenses this year, which analysts say would herald a new era of competition for Singapore banks dominant in retail banking. According to J.D. Power, this disruption is «likely to spur traditional banks to up their game in meeting evolving customer needs.»
«On average, customers in Singapore have about five accounts, which include transaction, savings and deposit. If banks build relationships and help customers navigate financial planning complexities, they will benefit from the lifetime value of the customer,» Anthony Chiam, Regional Practice Leader, Global Business Intelligence at J.D. Power, said.