According to Accenture’s 2020 Global Banking Consumer Study, customers are more likely to view banking services as a commodity, with price being the ultimate competitive differentiator, if they don’t feel a strong emotional connection with their bank.
The study, which polls over 47,000 consumers across 27 countries including Singapore, Australia, Canada, China (including Hong Kong), Japan, Mexico, South Africa, Spain, Switzerland and the US, says 43% of Singaporean consumers ranked value for money as one of the top three factors when dealing with a bank.
Digital adoption may have been the way to go in the banking industry as a way to lower costs and provide round-the-clock services, the rapid pivot to digital services has removed the vital human element from banking, says the consultancy firm.
For instance, about 29% of respondents from Singapore trust banks “a lot” to look after their long-term financial well-being in 2020, compared to 41% respondents just two years ago.
However, video calls have enjoyed growing popularity among consumers amid the pandemic. While it remains to be seen if this is a permanent behavioural shift or a pandemic-inspired fad, 57% of Singapore consumers said that they would be willing to speak to a bank advisor via video calls when branches reopen.
This is in contrast to the 25% of consumers who were willing to speak via video calls before the Covid-19 pandemic.
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Of the 57% surveyed, about 48% of consumers say they would prefer video calls instead of face-to-face meetings.
That being said, banks also need to understand how different channels affect consumer trust. For instance, only 35% of consumers said they would trust a human advisor when receiving advice on products and offerings, compared to 48% of consumers who said that they would trust an advisor if he or she were delivering advice in person.
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When asked about their data with the bank, only 37%, or less than four in 10 Singaporeans said they trust the bank “a lot” to look after their data.
However, the report also found that 56% of consumers in Singapore believe that their bank has their best interest in mind when providing advice, and 63% believe that the advice given is smart, personalised and well-informed.
Accenture says these factors are likely contributors as to why 27% of Singapore consumers believe that banks are in the best position to provide them with products and services outside of their core areas of expertise.
In comparison, only 19%, 15% and 12% of respondents felt the same way for tech providers, social media companies and neobanks respectively.
“Many customers view financial matters as highly personal and here is where trust will be a critical differentiator,” says Paul Ng, Financial Services Lead, Southeast Asia at Accenture.
“While the recent shift to digital has afforded consumers convenience and accessibility, banks cannot lose sight of what is truly important—the authentic, trusted relationship with their customers. With the rise of challenger banks and fintech firms in this region, banks must bring a more human and collaborative focus to their digital interactions to forge stronger customer connections,” Ng adds.
