• Thu. Dec 1st, 2022

Singaporeans need an extra push to embrace mobile banking

ByCindy J. Daddario

Oct 14, 2022

Although nearly nine in 10 Singaporeans (88%) use mobile banking at least a few times a month, many Singaporeans still use ATMs and visit bank branches.

Three in four Singaporeans use ATMs several times a month while one in four visits their bank’s branches several times a month. That’s according to an inaugural national survey on digital inclusion and resilience conducted by the Lee Kuan Yew School of Public Policy (LKYSPP) in partnership with UOB.

Surveying over 2,000 Singapore residents this year, the research provides fundamental insights into inclusive banking by examining Singaporeans’ attitudes and behaviors regarding digital banking adoption and digital resilience. The results of the inaugural survey were shared at the Festival of Ideas, a bi-annual event organized by the LKYSPP that brings together a diverse group of policy makers and opinion leaders to stimulate ideas and stimulate dialogue on public policy.

Trust is key to closing the intent-to-adoption gap

The survey revealed that those who frequent ATMs and bank branches are not hesitant to adopt mobile banking, but in fact have the highest intention to use mobile banking. Those who use ATMs more than once a day scored 5.8 on intention to adopt mobile banking (6 being the highest intention to adopt mobile banking) while those who use ATMs daily scored 5.4. The gap between intention and adoption indicates that more could be done to drive adoption of digital banking.

When it comes to consumers who frequent bank branches, those who go there more than once a day score high (5.6) on intention to adopt mobile banking. On the other spectrum, customers who never visit bank branches also indicate a strong intention to adopt mobile banking services (5.6), indicating that there are distinct population segments who want mobile banking. bank digitization.

Dr Reuben Ng, assistant professor at the Lee Kuan Yew School of Public Policy and lead researcher of the national study, said: “People who use ATMs and frequently visit bank branches have expressed a strong desire to adopt digital banking, but did not. It is on this segment that banks must concentrate their efforts. Trust ranks first among the key considerations in determining whether customers will embrace digital banking. »

Digital resilience

Given the rising and evolving trend of scams in Singapore, another aspect of the survey was to better understand the digital resilience of Singaporeans and their vulnerability to scams. Contrary to popular belief, older people are not the most susceptible to scams, with those under 25 being 10% more susceptible to scams than people 65 and older.

Professor Ng explained that “young digital natives are the most vulnerable as their comfort with technology may have reduced their guard against scams”.

Commenting on the digital resilience of Singaporeans, Mr. Kevin Lam said, “We believe that financial and digital literacy is essential in the world we live in today, especially for young people. That’s why we’ll be launching UOB TMRW’s #BetterTMRW (FinLit) financial literacy initiative, an ongoing program to educate and guide our clients to be financially strong and digitally savvy, so they can have the knowledge necessary to achieve their goals and achieve their goals. financial security.”