Singapore Takes the Lead in the Digital Banking Race Against Hong Kong
Singapore and Hong Kong, both renowned global hubs for technology and finance, are locked in a race to dominate the digital banking landscape. Recent research by RFI Global suggests that Singapore is currently leading the charge, with more significant growth in its population of heavy digital users.
According to the findings, Singapore has witnessed a rapid increase in the number of heavy digital users, which refers to customers who primarily utilize internet or mobile banking services. As of the second half of 2022, this segment constitutes a substantial 35% of Singapore's retail banking population.
In contrast, Hong Kong has experienced slower growth in heavy digital users, with just a quarter of its population falling into this category during the same period.
The report also notes that Hong Kong retains a larger percentage of traditional users, individuals who rely on conventional banking channels such as ATMs and phone banking.
To gauge customer satisfaction and loyalty in both markets, RFI examined the Net Promoter Scores (NPS) for digital and traditional banking. The research revealed that in Singapore, heavy digital users express higher satisfaction levels with their primary banks compared to traditional users. This finding suggests the success of digital channels in the city-state.
Conversely, in Hong Kong, traditional banking appears to resonate more with customers, as indicated by higher NPS scores among heavy traditional users.
NPS serves as a metric reflecting customer contentment and loyalty, making it a crucial gauge of banking preferences.
The differing NPS trends between Singapore and Hong Kong underscore the importance for banks to recognize and adapt to regional customer preferences. While Singapore leans towards embracing digital banking, traditional banking channels continue to hold sway in Hong Kong.
RFI emphasizes that this divergence highlights the necessity for banks to adopt a tailored approach to cater to the unique needs and preferences of each market. The ongoing competition between the two financial powerhouses reinforces the significance of adapting banking strategies to meet the evolving demands of customers in these dynamic Asian markets.