With more customers staying in and working from home, there has been significant growth in digital wealth and uptake of digital banking products and services, particularly in the 60 to 80-year-old segment.
The temporary closure of almost half of all bank branches in Singapore due to the reduced traffic expected as a result of enhanced social distancing measures is accelerating the pace of digital adoption in financial services, especially among senior customers.
According to OCBC Bank, there has been a «huge acceleration» in the take up of digital services, from new account opening to day-to-day transactions to investments, and a 20 percent year-on-year increase in the digital adoption among customers 60 to 80 years old, compared to 7 percent for other segments.
Digital investments have soared as more customers stay and work from home. The bank noted 150 percent quarter-on-quarter growth in the value of unit trusts purchased digitally, which accounts for 60 percent of its total. Investments on its Robo-Invest service also grew 60 percent in the same period.
New «Digital Normal»
With a 60 percent fall in walk-in customer traffic, OCBC is «on a concerted effort to create this new normal and digital shift» through its «Stay-In, Stay-Strong» campaign to help customers with digital adoption, Pranav Seth, head of digital and innovation, OCBC Bank, said.
To cater to more customers, and in particular the older generation, OCBC is expediting the Chinese language option on its mobile banking app.
Banking in a Lockdown
The Monetary Authority of Singapore has urged the public to minimize visits to financial institutions, and to use online or phone banking channels to meet their banking needs while the country is on a partial lockdown, which will last until June 1.
At the same time, the pandemic has given banks some extra time to convert their customers to digital and shore up their capabilities to compete with virtual banks. Disruptions to business have caused delays in the roll-out of virtual banks Hong Kong, while rival Singapore has said that it would extend the assessment period for the award of digital bank licenses to the second half of the year.
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