Visa Study: 2 In 3 Singaporeans Interested In Using Neobanks

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

* All infographics in this story courtesy of Visa.

It comes as no surprise that if consumers were to adopt a digital bank - interest is highest for an existing issuer given the trust already associated with the issuer. Click on infographic to enlarge.

It comes as no surprise that if consumers were to adopt a digital bank – interest is highest for an existing issuer given the trust already associated with the issuer. Click on infographic to enlarge.

The Visa Consumer Payment Attitudes Study was conducted in October 2019 by ENGINE Insights with 511 Singaporeans aged 18-65 years of age.

3 in 4 Singaporeans are aware of the concept of Digital Banking - whilst nearly 2 in 3 would be curious of adopting a digital only bank. Click on infographic to enlarge.

3 in 4 Singaporeans are aware of the concept of Digital Banking – whilst nearly 2 in 3 would be curious of adopting a digital only bank. Click on infographic to enlarge.

This is part of a regional research project conducted in Southeast Asia on 5,000 consumers across seven markets in Southeast Asia.

Among those who are open to digital banking services offered by non-banks, 60% are willing to switch some services from their current bank to new digital banking players which have no prior banking experience. 20% would move all their services to a neobank without hesitation. Click on infographic to enlarge.

Among those who are open to digital banking services offered by non-banks, 60% are willing to switch some services from their current bank to new digital banking players which have no prior banking experience. 20% would move all their services to a neobank without hesitation. Click on infographic to enlarge.

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.

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

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.

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%).

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

Around half of those open to digital banking with a non-traditional provider are motivated by offers or promotions upon sign up. Click on infographic to enlarge.

Around half of those open to digital banking with a non-traditional provider are motivated by offers or promotions upon sign up. Click on infographic to enlarge.

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%).

Making payments is the key factor where new digital banks are concerned - nearly 2 in 3 would engage in payments to family members or friends, or making bill payments. Click on infographic to enlarge.

Making payments is the key factor where new digital banks are concerned – nearly 2 in 3 would engage in payments to family members or friends, or making bill payments. Click on infographic to enlarge.

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

The “round the clock” convenience aspect and being a “faster way of banking” are key reasons for showing interest in adopting a Digital Bank. Click on infographic to enlarge.

The “round the clock” convenience aspect and being a “faster way of banking” are key reasons for showing interest in adopting a Digital Bank. Click on infographic to enlarge.

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