Huge opportunities exist for Singapore’s digital banks to extend their market share, with 43% of consumers in the city-state likely to try one within the next 12 months, in addition to the 29% already using their services.

This is according to a recent survey of more than 1,000 retail banking customers in Singapore, conducted by global financial technology company FIS.

The trend highlights the potential for growth in Singapore’s digital banking landscape, especially as consumers of all age groups are increasingly drawn to the convenience and 24/7 access digital banks offer​.

While digital banks have proven popular with tech-savvy Gen Z, the survey finds that they are also gaining ground across generations, with 21% of Baby Boomers surveyed currently using digital banking services.

For Singapore’s five digital banks, the growing demand for streamlined services and higher interest rates on deposits has presented an opportunity to capture more of the market.

Simplified interface

The survey reveals that customer experience is paramount in winning over the next wave of digital banking customers. Among Singaporeans, 79% reported that they would like financial apps to simplify their interface, and many indicated frustration with the overwhelming number of features in financial apps today.

This user feedback is a call for digital banks to prioritize simplicity and functionality to retain customers, especially as service disruptions and complex features rank among the top complaints​.

Nonetheless, FIS notes in its research that traditional banks still hold a loyalty advantage, with 72% of customers expressing high satisfaction with their primary bank. Singaporean consumers remain loyal to traditional banks due to familiarity, in-person services, and nearly 20 years of customer retention on average​.

Kanv Pandit, head of corporates and international banking at FIS, says digital banks are challenging traditional institutions to rethink their offerings. “As our survey suggests, many customers are still choosing to remain with established banks,” Pandit notes. “However, there is no room for complacency in the banking industry.”

For traditional banks, this means upgrading technology without losing the personalized touch that has historically driven loyalty in Singapore’s banking market​.