Two in three Singapore bank customers keen to try digital banks: Survey

Younger customers are leading the charge into digital banks but other age groups are pretty keen as well, according to a new survey.

It found that 65 per cent of people polled said they are interested in opening digital bank accounts compared with 52 per cent last year.

Around 70 per cent of younger customers - those born in or after 1980 - are willing to use digital banks. The figure is 59 per cent among the rest of those surveyed.

The results are likely to spur traditional banks to up their game in meeting evolving customer needs, said JD Power, the marketing information firm that carried out the poll.

The survey also found that 47 per cent have multi-account programmes that give extra interest when customers credit salaries to their accounts and use other services such as credit cards and bill payment.

"These accounts enable banks to attract new funds, but more importantly provide ways to deepen relationships with their customers," JD Power said.

"However, 23 per cent of customers with these accounts are likely to switch their primary bank for better interest in the next 12 months, compared with 14 per cent of customers who are not using multi-account programmes."

JD Power added that this brings into question whether the move by banks to increase customer loyalty is achieving its purpose.

The survey also found that the use of mobile banking apps has increased to 65 per cent from 53 per cent last year compared with Hong Kong's 43 per cent adoption rate, while customer satisfaction with their primary bank decreased marginally from last year.

  • 65%

    Of those surveyed said they were interested in trying digital banking, up from 52 per cent last year.

  • 70%

    Of those born in 1980 or after were willing to try digital banking.

HSBC ranked highest of the eight banks in the survey here when it came to customer satisfaction.

It scored 769 and came out first in three key areas - product offerings, fees and problem resolution. The other areas considered were account activities, account information and facility.

OCBC ranked second with 764, and DBS next with 752. They were followed by POSB, Standard Chartered, Citibank, UOB and Maybank in that order.

The survey polled 2,515 retail banking customers in May and June on their satisfaction with products and services provided by their primary financial institution.

JD Power also conducted the survey in Australia, Canada, China, Hong Kong and the United States.

"Customers are the winners when they have more choices," said Mr Anthony Chiam, regional practice leader, global business intelligence at JD Power.

"On average, customers in Singapore have about five accounts, which include transaction, savings and deposit.

"If banks build relationships and help customers navigate financial planning complexities, they will benefit from the lifetime value of the customer."

A version of this article appeared in the print edition of The Straits Times on August 02, 2019, with the headline 'Two in three S'pore bank customers keen to try digital banks: Survey'. Print Edition | Subscribe