Over the recent weeks, we’ve seen significant interest in the Singapore banking industry with 21 organizations submitting their applications for digital bank licences to the Monetary Authority of Singapore (MAS). It is clear that digital banks are attractive, given that digital and mobile specifically, has had a massive impact on how consumers manage their finances. However, while digital and mobile bank self-service offerings are most popular, new research from Adobe revealed that physical bank branches remain an essential touchpoint.
After surveying over 1,000 people across generations, the Adobe Consumer Banking Insights study found that 75% of consumers still believe that physical bank branches matter and 70% have visited a physical branch at least once in the past month. More than half of the respondents said that most of their banking is conducted online, but even with convenience at their fingertips, consumers also said more could be done:
- 62% said their banks’ digital offerings are just average compared with the rest of their digital lives
- More than half (57%) of all respondents said they have never digitally signed a document with their banks, while 41% would like their banks to offer this ability
- Most (59%) said they would not do business with banks that didn’t offer digital or mobile services
Craig Peasley, director of marketing at Adobe, believes that data shows that there’s still room to delight customers with offerings that combine the face-to-face service that’s still popular and digital offerings. “There’s a shift that’s occurring in banking right now, and it’s driven by the fact that younger consumers are coming of age and getting their own bank accounts,” Peasley added.
The study also found that Millennials and Generation Z, in particular, preferred banking via mobile apps and were more likely to state they would not bank with a financial institution that had limited or no online and mobile services.
- 44% of Millennial and Gen Z customers would even like to start and finish applications to open an account without ever walking into a bank
- Despite these generational differences, security and privacy remain the No. 1 factor for all age groups when choosing a bank:
- The majority (76%) cited security and privacy as key considerations when digitally enrolling for a banking service
- 50% said they worry about the safety of their finances with online-only banks
With these insights, banks are presented with the opportunities to rise above digital challenges. Singapore is home to some of the leading players who are at the top of their game. DBS, who was crowned World’s Best Digital Bank, partnered with Adobe to deliver meaningful customer experiences through extensive use of data analytics and contextual marketing. Another leading bank, OCBC Bank, has undertaken in its drive to be a technology company, partnering with Adobe to stand out from competitors and capture the attention of customers with search marketing.