Here's why online customer trust is more important than companies think

More than half of Singaporeans engage in e-commerce.

There has been a changing trend in the consumer sector, now that online consumers are seeing trust as the most important factor in purchasing.

According to a report by HSBC, the consumer landscape has been seeking stronger brand relationships through digital channels, with 94% Singaporean consumers from 18-34 age bracket saying that trust and reliability in a brand was the most important consideration when making a purchase.

HSBC Singapore Head for Commercial Banking Steven Cranwell said that the trust plays a huge part in Singaporean consumers as they are the most active online purchases globally. This has pushed businesses to re-think how they create "trust" with their consumers.

"At first glance this research presents businesses with a dichotomy in that reliability and trust have historically been built on face-to-face interaction but now that same connection needs to be developed through digital channels which many businesses would consider de-personalises the relationship,” Cranwell stated.

He added, “This requires businesses to really re-define how they build and deliver trust in an increasingly online world."

The research revealed that 57% of Singaporeans have purchased goods or services digitally in the past month, making the city-state the ninth largest in the world on per capita basis and largest in Southeast Asia when it comes to e-commerce.