Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

20 percent of Singapore consumers planning to switch banks in next 12 months

Anuradha Shukla | July 17, 2017
Overall satisfaction is higher among banking customers who use a mobile banking app than those who do not, according to J.D. Power's survey.

Piggybank and coins
Credit: GraphicStock

Nearly 1 in 5 consumers in Singapore are considering leaving their primary bank for another in the next 12 months, according to J.D. Power 2017 Singapore Retail Banking Satisfaction Study.

Singapore banks need to strengthen their relationship and engagement with customers as the average wait time at the branch is more than 12 minutes (12.4 minutes), which is three times longer than in the United States (3.6 minutes), and more than twice as long as in Australia (5.0 minutes) and Canada (6.1 minutes).

Less than half (44 percent) of the consumers visited their primary banking branch in the past 12 months, which is significantly lower than in the United States (71 percent), Australia (62 percent) and Canada (81 percent).

On a 1,000-point scale, overall satisfaction is higher among banking customers who use a mobile banking app than those who do not (755 vs. 723, respectively).

Four in 10 (41 percent) bank customers who used mobile banking apps in the past 12 months used it for services such as checking account balances (80 percent), transferring funds between accounts (72 percent) and paying bills (51 percent).

The study also found that customer satisfaction increases when apps offer additional features like receiving special offers (+54 points), applying for new banking products (+46) and providing alerts/notifications (+42).

Forty-three percent of mobile banking users "definitely would" recommend their bank to a family member, friend or colleague, compared with only 34 percent who have not used a mobile banking app in the past 12 months.

"The investments that banks have made in their mobile banking channels seem to be paying off," said Gordon Shields, senior director at J.D. Power. "Encouragingly, 77 percent of customers indicate that they are likely to apply for a new account or product using a mobile banking app. This conveys the need for banks to tailor offerings and create the right user experience that will attract customers on the move."

OCBC ranks highest in customer satisfaction with retail banking with a score of 746, performing particularly well in account activities and fees. Citibank came in second (745) while DBS ranks third (743) among the seven banks included in the study.

The study is based on responses from 2,452 retail banking customers polled between April and May 2017.

JD Power Infographic on Singapore consumers' perceptions of their main banks
Credit: J.D. Power

 

Sign up for CIO Asia eNewsletters.