Singapore amongst Asian countries which scored lowest in bank relevance: Survey

Singapore banks gained 74.1 out of 100.

A lack of trust, changing consumer behaviors and expectations set by digital innovators and increased competition from new players are eroding traditional banks’ relevance, according to EY 2016 Global Consumer Banking Survey.

In a survey of 55,000 consumers worldwide, including 1,007 in Singapore, 40% report decreased dependence on their traditional bank and increased excitement about alternatives.

Globally, retail banks scored just 75.1 out of a maximum value of 100 on the inaugural EY Bank Relevance Index (BRI), which evaluates how customers interact with banks now, and how they expect to in the future.

In Asia-Pacific, bank relevance varies significantly among the countries surveyed, with banks across Southeast Asia possessing some of the lowest scores in the region. Retail banks in Singapore garnered a score of 74.1, higher than Malaysia (72.2) and Indonesia (66.9, the second-lowest score globally).

Liew Nam Soon, EY Asean Financial Services Leader, says: “Traditional banks need to reconsider current practices to maintain relevance with an increasingly disenchanted consumer base. Globally, 42% of consumers have used non-bank providers in the last 12 months, and 21% who have not yet used them plan to do so in the near future.”

The report further reveals that the majority of Singapore consumers (63%) have accounts with three or more financial services companies. As such, it is no surprise that 64% of the Singapore respondents have difficulty in getting a holistic view of their finances across different banks.