Singapore’s competitive race for five digital banking licenses will likely yield gains from the nationwide openness to digital adoption, according to a recent Visa survey.
Nearly 65 percent of respondents were open to owning a digital-only bank account alongside another 84 percent who expressed interest in using the digital services of an existing bank. Residents in the city-state were also keen on unconventional players with 75 percent expressing interest in banking with reputable companies not from the financial sector and 63 percent expressing interest in banking with startups.
In addition to just interest, the survey’s results also illustrate the lack of stickiness from traditional banking businesses in Singapore. 60 percent of respondents expressed willingness to shift some of their services from a current bank to a digital bank with no prior banking experience. 20 percent of respondents even claimed willingness to move all of their services to a digital-only bank with no hesitation.
The Visa Consumer Payment Attitudes Study was conducted in October last year by an independent provider with 511 Singaporeans aged 18-65 years. This study was part of a broader regional research project conducted on 5,000 consumers across seven markets in Southeast Asia.
Digital Usage
According to the survey, convenience (54 percent), faster services (52 percent) and the lack of need to wait in line (45 percent) were the top reasons to opt for digital banks. The most sought after digital banking services include money transfers to family and friends (64 percent), payments of bills (63 percent) and payments at retail shops (56 percent).
«The digital banking space in Singapore and Southeast Asia is set for a year of unprecedented growth, setting the stage for the next revolution in banking,» said Kunal Chatterjee Visa country manager for Singapore and Brunei.
«When the region shifts to a millennial, digital-led demographic, more consumers will expect digital-first experiences, and want their banking and payments to match the speed and convenience of their user journeys.»
Info Sharing
Despite the advantages of digital capabilities, new players have yet to achieve the same trustworthiness as traditional banks. Whilst survey respondents expressed willingness to share bank account history (62 percent) contact information (64 percent) and social media profiles (63 percent) for open banking purposes, digital players lagged in accessing personal information.
Banks topped the list when it came to trust in accessing such information as agreed by 62 percent. This was followed by government bodies and payment providers which tied at 58 percent.
