It is exciting that Singapore is seeing a growth in digital banking. This has been a long time coming and will improve Singapore's ranking on the financial inclusiveness index (DBS: Digital banking now the baseline for all lenders, Sept 21).
The perennial challenge for digital banks to add value, however, has been the customer experience conundrum. Digital banks are all about their online functions and providing a great app experience which, however robust, may remain a poor substitute for the reliability of in-branch customer service.
Another challenge is the dichotomy between what digital banks assume to know about customers' proficiency and experiences with their apps, and what the customers actually know and experience. Bridging this dichotomy will be key to unlocking even greater value for customers of digital banks.
In the final audit, many factors must be considered for digital banks to be able to add value and provide superior customer experiences.
With Singapore's robust regulatory regime and infrastructure to support advanced technology in place, as well as it having the resources and will to do so, there should be little doubt that Singapore's digital banks can - and will - deliver.
Woon Wee Min