ANALYSIS: DIGITAL ADVISORY Singaporeans expect better experience from mobile banking
Singaporeans remain unsatisfied with their banking provider’s digital capabilities
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Confidence is a key expectation customers seek from financial advice (Photo: Laurent Bertrand, CEO, BetterTradeOff)
products. Finally, the demand of society for higher ethical standards and greater digital convenience drives the need for a platform that delivers a compliant and intuitive journey while managing the complexity associated with sound financial advice in the background,” Bertrand said. C&C: Confidence & Clarity One key observation that Bertrand and BetterTradeOff saw from wealth management customers’ behaviors is that confidence is a key expectation they seek from financial advice. “What they want most of all is confidence that they’re doing the right things financially for their future. The future can be a scary place. And many people have limited financial knowledge. There’s a seemingly unlimited amount of information online, but this can be confusing and overwhelming at times - which only serves to create more anxiety,” Bertrand said. Banks and financial management institutions in particular must be able to clearly answer customers’ needs– such as how much they need to retire and still be able to enjoy the lifestyle they desire, whether they have enough coverage from the unexpected, amongst others.
“Customers usually want a quick answer to their questions to start with, but usually don’t stop there - [they seek] further reassurance about their decisions before committing. This requires the capacity to explore options on their own, in the privacy and comfort of their home, without the feeling of being judged, while at the same time accessing expert advice to select the right product to address their needs,” Bertrand concluded. This is where technology can come in. For example, BetterTradeOff offers a platform that delivers the 80-20 rule online, with a volume-based commercial model that makes it affordable even in markets where FIs don’t have a large wealth presence. They do this by offering a platform that enables banking customers to build a financial plan on their own in 15 minutes, that is also sophisticated enough to need collaboration with an adviser. “Technology can help people answer many of these questions on their own, or collaborate with advisers in a transparent manner, so they can see for themselves what they really need, and make decisions with more control, clarity, and confidence,” he said.
hilst 8 in 10 of Singaporeans now use mobile apps for banking services, most remain not fully satisfied with their banking provider’s digital capabilities, with almost the same ratio of users (77%) saying that they “definitely” want a better experience. In its Bank of the Future Survey, which involved 1,000 respondents from the Lion City, Capco found that Singaporean consumers sought a key number of changes from their mobile banking experience. Amongst the top changes sought were easy and clear navigation (59%), mobile applications (51%), and face ID and fingerprints logins (46%). The “Big Tech” firms garner much trust from the respondents, with 8 in 10 indicating that they trust a “Big Tech” firm at least as much as a bank to fulfull banking services. Over 2 in 5 or 42% of respondents even said that they would trust them more than an actual bank. “Our Singapore respondents’ willingness to view ‘Big Tech’ firms as attractive future providers of banking services indicates that the competitive landscape could develop in some intriguing directions as Singapore’s financial sector continues to evolve,” Hayley Haupt, Partner and APAC Head of Strategy & Consulting, noted in the report. Haupt added that Capco had identified strong appetite for innovation in banking services among Singapore’s consumers. “When it comes to more individually tailored customer offerings and experiences, they are focused on greater personalisation, in line with our findings in other regional markets,” Haupt said. “There is clearly demand for a more aggregated view of financial information. To enhance customers’ digital journeys, banks should continue to explore how they can best educate consumers and provide clear insights around products and services,” she added. Digital bank adoption rises Adoption rate of digital bank accounts is expected to continue to rise over the years, and hit 30% in 2023, according to a report by Finder.com. In 2022, the adoption rate reportedly stood at almost 22%, the highest amongst all countries in Asia surveyed by Finder. “Singapore has similar levels of banking adoption to Hong Kong (20%) but is well ahead of countries like Malaysia and the Philippines (13% each),” said Finder’s global fintech editor Elizabeth Barry. ASIAN BANKING & FINANCE | Q1 2023 35
