- An FIS survey reveals that 43% of Singaporean consumers are likely to try a digital bank in the coming year, while 29% are already users.
- Primary banks maintain high customer satisfaction, with 72% of respondents reporting they are very or extremely satisfied.
- A large portion of consumers (79%) want financial apps with a simpler user experience.
Singapore, November 14, 2024 – Singapore’s five digital banks are poised to capture a larger share of the financial market, with 43% of consumers surveyed indicating they are likely to try a digital bank within the next 12 months, in addition to the 29% already using one. This insight comes from a survey conducted by FIS® (NYSE: FIS), a global financial technology leader, which gathered responses from over 1,000 retail banking customers in Singapore.
Consumer openness to digital banking spans across all age groups, including older generations, as users enjoy the convenience of accessing their money through seamless digital platforms. The survey found that 21% of Boomers (59+ years) and 38% of Gen Z (18-27 years) respondents are already banking with a digital provider, highlighting broad demographic interest in digital banking.
A Shift from Tradition?
While digital banks are gaining traction, Singapore’s traditional banks continue to enjoy robust customer loyalty. The survey revealed that more than 70% of Singapore banking customers are very or extremely satisfied with their primary bank. The average customer relationship with a primary bank now spans nearly 20 years, indicating a strong foundation of trust within Singapore’s established banking sector.
This loyalty does create a challenge for digital banks. Among respondents unlikely to try virtual banks, the primary reason cited was satisfaction with their current bank (48%), followed by the lack of physical branches (36%), and the inability to meet with banking representatives in person (34%). However, for consumers open to digital banking, financial benefits are key motivators: higher interest rates on deposits (45%), attractive sign-up incentives (37%), and robust rewards programs (34%) were among the top reasons respondents would consider switching.
For those already signed up to digital banks, key attractions included 24/7 accessibility, ease of use, and strong security features. This indicates that while financial incentives are effective in attracting new users, seamless functionality and user experience are essential to retaining them.
Demand for Innovation and Simplicity
When asked about their experiences with online banking platforms and financial apps, the majority of Singaporean consumers (79%) signalled a clear preference for a simplified user experience. Over half of the respondents reported feeling overwhelmed by the increasing number of financial apps and websites they use.
Ease of use in digital services was also deemed highly important, with 83% of those surveyed rating user-friendly websites and mobile banking capabilities as very or extremely important. Technical glitches and service interruptions were the biggest problems respondents had with online banking and financial apps, then navigational issues caused by too many features came in second.
Kanv Pandit, Head of Corporates and International Banking at FIS, observed, “With the surge in demand for digital banking, traditional banks in Singapore have intensified their digitalisation efforts to attract and retain customers. New digital banks are gaining popularity, not only among younger, tech-savvy users but across all age groups. While our survey suggests many customers remain loyal to established banks, there is no room for complacency in today’s rapidly evolving banking landscape.
“Technology is now integral to banking, yet outdated systems and manual tasks can hinder the customer experience. At FIS, we aim to unlock financial technology for banks worldwide, enabling a smoother, more seamless experience that integrates naturally into customers’ daily lives. While technology is essential, it must be paired with a personalised touch to create true customer-centricity. Traditional banks can learn from this by adopting a digital approach that combines the best of technology and human assistance to meet growing consumer expectations. FIS is proud to support a number of banks in their efforts to modernise and streamline their offerings to achieve this balance.”
