The second annual Banking Trust Index for Singapore (BTIS), a survey commissioned by the Association of Banks in Singapore (ABS) showed that public trust in the Singapore banking industry continues to be resilient.
The BTIS, which began in 2021, is the first standardised means of measuring the public trust in banks in Singapore. It is commissioned by the ABS to understand the level of trust in banks by consumers, and for the association to see where banks can improve on.
The most recent survey was conducted among over 3,500 Singapore residents from Oct 4, 2021, to Nov 5, 2021, by Edelman Data and Intelligence and involved 15 participating banks. It is conducted annually for participating banks to monitor shifts in customers’ sentiments, solicit feedback and identify areas for improvement over time.
The 15 participating banks are Bank of China (BoC), Bank of Singapore (BoS), Citibank, Credit Suisse, DBS, Deutsche Bank AG, HSBC, Industrial and Commercial Bank of China Limited Singapore Branch, JP Morgan, Maybank, Nomura Singapore, OCBC, Standard Chartered Bank, UBS AG, and UOB.
Higher ENTS score attributable to banking industry’s commitment to do more for customers
This year, participating banks achieved an over Edelman Net Trust Score (ENTS) of 63 in 2021, seven points higher than the 56 points recorded in 2020.
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The ENTS is a 200-point scale that ranges from a score of -100 to +100, representing the sentiments of respondents who have a low trust of banks to respondents who trust banks highly.
The score of 63 is said to be in the upper quartile.
In this survey, 68% of the 3,500 respondents indicated that they had a high trust in banks, whereas 5% indicated that they had low trust in banks.
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The ENTS is derived from the difference in these two percentages. The remaining 27% of respondents were neutral in their trust in banks.
According to the release by ABS, the higher score was mainly attributable to the banking industry’s commitment to do more in furthering their customers’ interests, as well as its ability to deliver consistent financial performance, customer-centric solutions and contributions to the community.
The results also show that the Singapore public have higher expectations on banks to do more to keep the banking system and customer data secure. In addition, banks in Singapore are expected to create accessible, reliable and innovative banking solutions and improve customer service standards and consistency.
Further to the report, respondents felt that banks could be more forthcoming in demonstrating greater accountability and contributing to local communities. Respondents also expect banks to continue to strengthen security measures to safeguard customer accounts given the increased digitalisation of the sector.
In addition to the ENTS, the Edelman Trust Management framework measures trust through four key pillars, which are ability, integrity, dependability and purpose.
Under these pillars, ability saw an improvement of three percentage points to 30% from 2020 to 2021. Integrity fell by one percentage point to 27%. Dependability stood unchanged at 24% while purpose, where banks are perceived to have a positive impact on society, fell by two percentage points to 19% in 2021.
Measures taken since first survey
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In 2021, the ABS and banks worked on issues identified in the previous survey, which led to banks providing timely credit reliefs to individuals and small- and medium-sized enterprises (SMEs) to alleviate their immediate financial challenges amid the Covid-19 pandemic.
The ABS Anti-Scam Taskforce was also established to combat the rising occurrence of digital scams among other measures that were taken.
Wee Ee Cheong, chairman of ABS Chairman and CEO of UOB, says, “While it is heartening to see that the public’s trust in banks in Singapore has improved despite economic uncertainty during Covid-19, we will not rest on our laurels.”
“Trust is vital to a strong and resilient banking industry. As responsible financial stewards, we are committed to keeping our promises to our customers, seeking to improve our products and services continually so as to honour the trust they have placed in us. Collectively, banks are committed to safeguarding the security of the financial system while ensuring that customers are able to enjoy the full benefits and convenience that digitalisation brings,” he adds.
Marcus Lim, assistant managing director of banking and insurance at MAS, says, “With the increasing digitalisation of financial services, banks must continually invest in maintaining and building trust with their customers. There may be service issues along the way, but a consistent demonstration of accountability and commitment to protecting their customers’ interests will bolster the public’s confidence in the industry. In this regard, the BTIS serves as an important reference for banks to understand the effectiveness of their collective efforts.”
