Digital banks unlikely to displace incumbents in Singapore, PwC study says

PricewaterhouseCoopers has published a a digital banking customer insights study revealing that Singaporeans are reluctant to switching to digital banking.

The report noted high satisfaction levels among customers in the region with their primary bank, though 71% of Singaporeans indicated at least one pain point with their bank. Those with more than three pain points are more likely to open a digital bank account, PwC said in «Digital banking: Singapore customers take charge».

Two in five Singaporeans would only consider opening a bank account with a digital bank if it is popular and successful, and even if they did, just one-third would make it their primary bank, according to the study.

Their frustrations with their primary bank included queue times (42%), long wait times on the hotline (23%) and the inability to perform banking functions online (13%). Respondents said they would be attracted to open an account if they could get better rates on deposit and lending (49%), better online customer service (42%), and a better mobile/digital experience (40%), according to the report.

PwC said the transition to digital banking is expected to be smoother among the young and affluent as this group already use self-service channels for their daily banking activities, while those who have more investable assets and own a wider array of financial products are also seeking better and easier ways to manage their money.

Over 70% of 18-39 year-olds and 70 perecent of those in the high-income bracket indicated they were «very interested» or «interested» in opening a digital bank account.