81% of Singapore banking customers use mobile apps to access banking services
A large majority of consumers will trust “Big Tech” at least as much as a bank to provide banking services
SINGAPORE, 29 November 2022 /PRNewswire/ — The new Asia-Pacific focused The Bank of the Future research by Capco, the global technology and management consultancy, has found that the vast majority (81%) of Singaporeans now use mobile apps to access banking services alongside other channels. However, 77% say they “definitely” want a better online experience from their banking provider.
Capco surveyed 1,000 Singapore consumers to gauge their attitudes towards banking services at a time of rapid change in the retail banking industry. The findings are part of a larger survey of nearly 5,000 consumers across five markets Asia-Pacific region, which also covered Hong KongGreater Bay Area (ex-Hong Kong), Thailand and Malaysia.
The survey also found that 80% of Singapore Respondents said they would now trust a “Big Tech” firm at least as much as a bank to conduct their banking services – with 42% saying they would trust a “Big Tech” firm more than a bank.
When it comes to online customer experiences, Singapore’s mobile-oriented consumers ranked the top three improvements they would most like to see as follows: simple and clear navigation (59%), mobile applications (51%), and Face ID and fingerprint logins (46%).
Currently, bank customers typically have a relatively fragmented view of financial products such as bank accounts, insurance, pensions and investments. A majority (56%) of Singapore Respondents say they would consider an app that gave them better visibility across all their financial products and also provided personal insights to be “extremely” or “very” attractive – with most of the remaining respondents (38%) sees this proposal as “somewhat attractive”. ‘.
Other key themes emerging from Capcos Singapore the survey includes:
1. Willingness to share different types of data – More than half of consumers are happy to share data to unlock personalization, or are willing to consider doing so. Where customers are willing to share data, there is a relatively even spread in the types of data they choose to share, which includes location services (38%), life events, wearables and health tests (all at 37%), with enthusiasm waning when it comes to social media (31%) and data from other bank accounts (22%).
2. Sustainability identification is of increasing importance to customers – Almost one in four (23%) Singaporean respondents consider the sustainability credentials of their banking services to be “extremely important”, with a further 43% attaching a more limited degree of importance.
3. Crypto volatility and fraud are not deterrents – One in five respondents (21%) said it would be ‘very interesting’ if their bank offered the ability to trade cryptocurrencies, with just over half (53%) showing at least some interest. This level of positive sentiment is at odds with the Monetary Authority of Singapore’s concerns that crypto trading is too risky for the general public, and the subsequently published October consultation on reducing potential consumer harm in this area.
Hayley Hauptpartner and APAC head of strategy and consulting, said: “Our research suggests that the emerging digital banking landscape is seeing a shift in trust patterns among consumers. Singapore respondents’ willingness to view “Big Tech” firms as attractive future providers of banking services indicates that the competitive landscape may be developing in some exciting directions that Singapore’s the financial sector continues to develop.
“We have also identified a strong appetite for innovation in banking among Singapore’s consumers. When it comes to more individually tailored customer offers and experiences, they are focused on greater personalization, in line with our findings in other regional markets. There is a clear demand for a more unified view of financial information. To improve customers’ digital journeys, banks should continue to explore how they can best educate consumers and provide clear insights around products and services.”
James ArnettAPAC Managing Partner at Capco, said: “Retail Banking Across Asia-Pacific undergoing a seismic transformation. Digitally savvy, mobile-oriented consumers are playing a key role in reshaping banks’ priorities and the wider banking ecosystem. New technologies give consumers unprecedented freedom to pick and choose how they communicate with their bank(s), access more personalized services and see a more complete overview of all their finances. As established banks and their competitors aim to support consumers’ personal and lifestyle aspirations, our findings from the survey shed new light on the priorities that will define the bank of the future.”
The survey was conducted online during September and October 2022 and collected responses from a total of 4,889 respondents in five Asia-Pacific markets. Individual Sample Sizes – Hong Kong: 707; Greater Bay Area (ex-Hong Kong): 1293; Singapore: 1000; Thailand: 890; Malaysia: 999. Survey respondents were drawn from six age groups – 18-24, 25-34, 35-44, 45-54, 55-64 and 65+ – and sample sizes were representative of age-related demographics in each market.
Capco, a Wipro company, is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. With a growing client portfolio of over 100 global organizations, Capco operates at the intersection of business and technology by combining innovative thinking with unrivaled industry knowledge to accelerate digital initiatives for the banking and payments, capital markets, wealth and asset management, insurance, and energy sectors. Capco’s pioneering ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on Twitter, Facebook, YouTube, LinkedIn and Instagram.