As per the survey, Singaporeans are ditching cash for daily transactions, choosing debit/credit cards and QR codes instead
Easy access to digital payment methods lead to an increase in frivolous spending. This myth has been debunked by a survey to study the state of digital banking in Singapore by UserTesting, a company specialising in experience research and insights.
The survey found that about 71% are still cautious of their daily expenses, despite the convenience offered by digital payment services.
Interestingly, another insight sheds light on how the preferred payment options of the respondents have shifted in recent times. According to the survey, none of the respondents use cash for day-to-day spending anymore. Instead, an overwhelming 78% of Singaporeans use debit or credit card and the remaining 14% use QR codes for making daily purchases. This suggests that while people are moving towards a cashless society, there’s still some hesitancy towards QR codes and mobile wallets, possibly due to security concerns or a lack of familiarity with these payment methods.
Singaporean’s take on digital-only banks
When asked about their views on digital-only banks having no physical presence, the majority of Singaporeans hinted towards their skepticism towards shifting to a digital-only bank. About 64% survey respondents would rather have a hybrid bank, offering the convenience of online banking and the assurance of finding support in-person. Moreover, this study also revealed a generational banking trend–while millennials prefer digital-only banks, older people want to visit their banks in-person as they seek human customer support.
Customers Want Human Touch in Banking
About 71% prioritize a mix of digital and human interaction for customer support in banking over relying completely on automated chat or call systems. This indicates that despite the increasing availability of automated support options, people still highly value personalized service and knowledge that can only be provided by human representatives in the banking sector.
Low Fees Trumps Bank Reputation
Additionally, while choosing a bank, about 43% of Singaporeans prefer low fees over other factors such as reputation, responsiveness, branch location and online banking services. This shows that people are willing to tolerate slow and lagging systems as long as banks are not charging a lot for their services.