FICO Survey: 76% of Singaporeans Not Satisfied with Generic Credit Offers from Their Bank
A recent survey by global analytics software firm FICO has revealed that 76 percent of Singaporean consumers are not satisfied with generic credit offers from their bank.
The poll demonstrates growing ambivalence to generic financing solutions, with respondents across the region having expressed indifference to standard offers, FICO said in a press release.
There was broad discontent from consumers in Asia Pacific with the experience of taking up new products. 34 percent said they were not offered any attractive incentives (better rates, gifts), 31 percent said the bank failed to offer them a superior product to the one they applied for while 28 percent said the bank failed to offer any additional products to their liking.
By contrast when banks get personalized offers right there is an overwhelmingly positive reaction. 73 percent of Singaporean consumers had a positive reaction to offers that took into consideration their circumstances.
"Capturing greater customer share of wallet will require re-imagining the entire digital lending process, particularly within the context of personalization," said Aashish Sharma, FICO senior director of decision management solutions in Asia Pacific. "Surveyed respondents remain unimpressed with banks that appear not to know them or be able to anticipate what they might need. Social media companies have worked out how to put ads in front of viewers that are targeted and which as a result see great engagement and uptake. Banks need to learn to do the same so that their customers are more open to additional products and services."
Consumers ready for pricing innovation
Banks can deepen their relationships with customers and build loyalty by offering better interest rates or lower fees in return for more financial information. Many banks in Singapore do not have a comprehensive pricing strategy that aligns with the organization's overall business strategy, yet customers are extremely willing for banks to make them offers that consider their total customer relationship.
The survey showed that one in four Singaporeans are very willing to offer more financial information for preferential pricing, while more than half (57%) of Singaporeans are somewhat willing to do so.
"Consumers are used to innovative pricing strategies from airlines, ride sharing services and insurance companies, yet banks are lagging behind," said Sharma. "Clearly there are opportunities for banks to move past single-product pricing and engage in improved cross-selling and increased product penetration. Banks may have gotten away with this so far due to the high inconvenience cost for customers of moving to a competitor, but with increased competition and the regulatory trend of open banking, we see this changing quickly in the next three years."
Real-time expectations are growing
In addition to personalized offers and pricing innovation, FICO's survey also revealed that there is pressure to make the funds available quickly. The real-time transactional experiences on other platforms have led to an expectation of similar engagement from lenders.
While most Singaporeans surveyed (56%) expected access to loaned funds in a week, 22 percent wanted access in a day and 18 percent within the hour.
"This finding continues to fit within the evolving personalization paradigm where banks need to think about the customer journey from end-to-end," added Sharma. "The FICO Platform helps banks to achieve successful digital transformation projects by eliminating silos and providing powerful point solutions such as Strategy Director, Xpress Optimization and Origination Manager.
"Lenders are cognizant that to compete effectively in today's retail financing environment, speed to market and pricing features may be insufficient and the greatest value-add is centered on products that are bespoke and tailor-made to meet the specific needs of the customer."
FICO's Advancing New Experiences in Digital Banking survey was conducted in December 2020 using an online, quantitative poll of 5,000 consumers across ten countries and territories carried out on behalf of FICO by an independent research company. The countries, regions and territories surveyed were Australia, Hong Kong, Indonesia, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam.