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.

Sixty-three per cent respondents also highlighted that they are keen to bank with new startups.

The study goes further by revealing that among those who are open to digital banking services offered by non-banks, 60 per cent are willing to switch some services from their current bank to new digital banking players with no prior banking experience. One in five (20 per cent) respondents also shared that they would move all their services to a neobank without hesitation.

The study details that the respondents are open to adopting neobanks due to many sign-up promotions, more innovative products and services, and access to better rewards.

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The top services that respondents would use a digital bank for include money transfers to family and friends (64 per cent), paying bills (63 per cent), and payments at retail shops (56 per cent).

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

According to Chatterjee, 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.

The top reasons why Singapore respondents prefer digital banks include convenience (54 per cent), faster service (52 per cent), and not needing to wait in line (45 per cent).

Information that respondents are most willing to share with regard to open banking includes bank account history (67 per cent), contact information (64 per cent) and social media profile (63 per cent).

Singaporeans trust banks (62 per cent) the most when it comes to access to personal information, followed by government bodies (58 per cent) and payment providers (58 per cent).

Also Read: After Razer and Grab, China’s Ant Financial applies for digital banking licence in Singapore

On a report jointly done by Bain & Co, Google and Temasek, Southeast Asia’s digital lending market are predicted to grow from US$23 billion in 2019 to US$110 billion by 2025, representing 29 per cent compound annual growth rate.

China-based fintech operator Ant Financial and gaming startup Razer Fintech had applied for a digital banking licence on Thursday, stating its mission in targeting underserved youth market with its Razer Youth Bank. On Monday, Grab Holdings and Singapore Telecommunications announced their joint bid that has 60 per cent equity held by Grab.

The Visa Consumer Payment Attitudes Study was conducted in October 2019 by ENGINE Insights with 511 Singaporeans aged 18-65 years of age. This is part of a regional research project conducted in Southeast Asia on 5,000 consumers across seven markets in Southeast Asia.

Image Credit: Mike Enerio on Unsplash

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