Visa: Two in Three Singaporeans Interested in Digital-Only Banks

Visa: Two in Three Singaporeans Interested in Digital-Only Banks

by March 24, 2020
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A new breed of digital banking is just around the corner as Singapore introduces its digital banking framework which attracted the likes of Grab, Razer, Ant Financial, Sea Group and many more to bid for the license.

With growing interest from non-banks to enter into the banking space, how interested are consumers to embrace this new breed of banks? Very, according to a recent Visa study.

Close to 65 per cent of Singaporeans are open to the idea of adopting a digital-only bank, according to the Visa Consumer Payment Attitudes Study.

Based on the study, 84 per cent of Singapore respondents indicated that they would be interested in using digital banking services offered by an existing bank. Seventy-five per cent of them are keen to bank with companies within the financial services industry and reputable companies that are not in financial services. Three in five (63%) respondents also highlighted that they are keen to bank with new startups.

Among those who are open to digital banking services offered by non-banks, six in ten (60%) are willing to switch some services from their current bank to new digital banking players which have no prior banking experience. One in five (20%) respondents also shared that they would move all their services to a neobank without hesitation.

Respondents are lured by sign-up promotions, more innovative products and services and access to better rewards when choosing to use digital banking services from a non-bank. The top services that respondents would use a digital bank for include money transfers to family and friends (64%), paying bills (63%) and payments at retail shops (56%).

Kunal Chatterjee

Kunal Chatterjee

“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,”

Visa Country Manager for Singapore and Brunei, Kunal Chatterjee, said.

“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. At Visa, we are a network of networks to facilitate seamless money transfers, and our role is to connect and work with banks and fintechs to deliver the best-in-class payment experiences to make consumers’ lives simpler and more seamless.”

 

The top reasons why Singapore respondents prefer digital banks include convenience (54%), faster service (52%) and not needing to wait in line (45%). Information that respondents are most willing to share with regard to open banking include bank account history (67%), contact information (64%) and social media profile (63%). Singaporeans trust banks (62%) the most when it comes to access to personal information, followed by government bodies (58%) and payment providers (58%).

Featured image credit: Unsplash

 

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