Entrust Report Highlights Shifting Consumer Trends in Banking and Payment Techby Fintech News Singapore November 17, 2023
The Entrust Cybersecurity Institute has recently published the Digital-First Banking report, which is a comprehensive analysis of the evolving preferences and attitudes towards digital banking.
Financial services’ cybersecurity specialists Entrust has the Cybersecurity Institute research house to curate insights for industry leaders and C-suite executives. The latest report draws on data gathered from a survey of 1,000 consumers across the United States, France, Chile, and Singapore, and it particularly underscores the increasing trend towards digital onboarding in an omnichannel environment.
A significant finding of the Entrust report is the readiness of consumers to embrace the next generation of payment technology, which includes the use of AI-driven biometrics for identity verification during the digital-first account opening process.
In Singapore, for instance, nearly three-quarters of the participants expressed comfort with the use of AI in detecting bank fraud. However, over half of the respondents from Singapore also reported abandoning a new bank account application due to security concerns, cumbersome processes, or excessive time consumption.
The report also sheds light on the consumer preference for a blend of both digital and physical banking elements. While instant access to digital debit or credit cards is a key expectation for nearly half of the survey participants, a striking 83% in Singapore still show a strong inclination towards using physical credit or debit cards. This trend is particularly pronounced among Millennials and Gen Z, with nearly a third strongly preferring physical cards.
Jenn Markey, Vice President of Payments and Identity at Entrust, observed of the report findings:
“This report clearly demonstrates that we are entering a hybrid future; banks need to provide both physical and digital payment options in order to remain competitive and relevant. Digital-first experiences can enable AI-driven digital account opening and onboarding while still providing a digital payment card along with the physical credential, allowing customers secure and accessible options.”
The report emphasises the importance for financial institutions to support both physical and digital services to succeed in the current competitive market. Notably, nine out of 10 respondents in Singapore expressed a preference for conducting basic daily banking activities online, such as making deposits, applying for a credit card, and opening accounts.
The Digital-First Banking report contains insights valuable for understanding consumer behavior and preferences during this digital banking transition and highlights the continued value of physical assets even as banks progress towards digital solutions.