Visa's annual survey on consumer payment attitudes found that six in 10 Singaporeans would move some services from their current traditional banks to providers with no prior banking experience.
This is because with over half, or 52 percent, of the consumers surveyed anticipating the new players to dangle better sign-up offers. Four in 10 also expect the non-traditional providers to be more innovative, as well as offering better rewards.
The survey, which polled 511 respondents aged 18 to 65, also reveals that almost two in three would use digital banks mainly for transferring payments to friends and family or paying bills - at 64 percent and 63 percent respectively. The percentage is much higher than those who are keen to turn to the new digital banks for investments (49 percent) or loans (35 percent).
Convenience Another Key
Convenience is another key factor for drawing interest in digital banking - with 54 percent of respondents citing the ability to bank at any time of the day, and 52 percent saying it will be «a faster and more convenient way of banking».
The Monetary Authority of Singapore is expected to issue up to five new licenses by the middle of this year - with up to two for retail banking, and up to three for wholesale banking. Non-traditional lenders that have applied for a license include Razer consortium and Grab-Singtel consortium.
Trust Level High
In terms of sharing financial information with third parties, Visa's survey found that 48 percent of Singaporeans are willing for their data to be shared. Among them, two-thirds are willing to share various types of personal information, from loan and investment history, to social media.
It also found banks are perceived as the most trustworthy organizations here, with 62 percent of Singaporeans willing to entrust their information to banks, versus 58 percent who would trust government bodies and payment providers.
