Recent research by global payment service providers F.I.S. reveals that digital banks are making inroads in Singapore, with 43% of respondents saying they are likely to try a digital bank in the next year.
This is in addition to the 29% who have already adopted digital banking.
The survey surveyed more than 1,000 retail banking customers and highlighted the growing appeal of digital banks across all age groups.
For example, 21% of baby boomers (ages 59 and older) are already enrolled in a digital bank, and 38% of Gen Z respondents (ages 18-27) currently bank with a digital bank.
Despite these trends, traditional banks continue to have high customer satisfaction ratings, with 72% of respondents saying they are satisfied with their primary bank.
Customer loyalty remains strong, with customer relationships lasting on average nearly 20 years.
Digital banks vs traditional banks
The study also identified key factors that influence consumer choice.
48% of people who are hesitant to use a digital bank say they are satisfied with their current bank, 36% are concerned about not having a physical branch, and 34% are concerned about not being able to interact directly with a bank representative. I was there.
Conversely, 45% of people who use digital banking are attracted to high deposit rates, 37% are attracted to sign-up bonuses, and 34% are attracted to strong rewards programs. I did.
For existing digital bank users, convenience, ease of use, and security were the main attractions.
Interestingly, the study found that the majority of respondents (79%) want a simplified user experience for financial apps.
Many people report feeling overwhelmed by its complexity and number of apps available.
Specifically, respondents identified issues such as technical glitches, service interruptions, excessive functionality that complicates app use, and difficulty navigating the app.
Kumbh Pandit, Head of Corporate and International Banking at FIS, said:
“With the surge in demand for digital banking, Singapore’s traditional banks are accelerating their digitization programs and working hard to attract and retain customers. It is rapidly gaining popularity among all demographics.
As our research suggests, many customers still choose to stay with their existing bank, but there is no room for complacency in the banking industry. Technology is now essential to banking, and customers are often victimized by outdated systems and manual processes. ”
Featured image credit: Edited from freepic
