Market Research Logo

Retail Banking Country Snapshot: Singapore

Retail Banking Country Snapshot: Singapore

Summary


Singapore has an advanced financial services market. Consumers are generally conservative in choosing a provider, with a bias towards those they perceive to offer financial stability and a longstanding reputation. Singaporean consumers prefer the branch for nearly all of their banking requirements. NPS scores are low across all four products compared with other markets in the region. Channel usage patterns indicate that Singaporean consumers are less engaged with their banks than consumers in other regional markets.

Key Findings

  •  Consumers in Singapore place a high value on trust in relationships with financial services providers, which also heavily influences their choice of provider. Advocacy among consumers is low and Singaporeans are not likely to pay much attention to recommendations when deciding on a provider or product.
  •  Singaporeans have a high propensity to save, but unlike consumers in other markets are not inclined to choose their existing current account provider for their savings account. Mortgage product features commonly included payment holidays and the ability to offset against savings, reflecting socio-cultural attitudes of self-reliance and individual responsibility and the high level of saving among consumers.
  •  In general Singaporeans often prefer to use local financial services providers, which is an impediment for foreign banks. However, loans are the only product where Singaporeans are not concerned about the origin of the provider. This is evident from the fact that Citibank holds 11% of loans that are issued by traditional banks with a branch presence.
Synopsis

Verdict Financial’s Retail Banking Market Insights: Country Snapshot Singapore is a review of the retail banking sector in Singapore, with a particular focus on the current account, savings, mortgage, and personal loan markets. It includes both market-level data and insight from our global consumer survey.
  •  Overview of Singapore’s banking sector
  •  Insight into consumer preferences in Singapore and the reasons for taking out financial products and how this has evolved in recent years.
  •  Understanding around the main providers dominating the current account, savings, mortgage, and loan markets and the different factors persuading customers to choose them
  •  Examination of the extent to which consumers are using online and mobile channels to research, take out, and use their financial products.Reasons To Buy
  •  Futureproof your strategy with market sizing, forecasts, and analysis of key developments currently affecting Singapore’s retail banking sector.
  •  Target consumers with inside knowledge of their true behaviors and attitudes, with detailed analysis from our proprietary insight.
  •  Learn about the impact new entrants and distribution channels will have on the market.


  • EXECUTIVE SUMMARY
    • The needs of Singaporean consumers are not being met consistently
  • CURRENT ACCOUNTS
    • MARKET - MARKET SHARE
      • The Singaporean current account market is dominated by three large local players
    • MARKET - PRODUCT FEATURES
      • The majority of Singaporean consumers have a transactional main bank account with no added features or benefits
    • CONSUMER - CHOICE OF PROVIDER
      • Choice of provider is driven by reassurance-related factors such as track record and familiarity
    • CONSUMER - RECOMMENDATION
      • All major providers score negatively on NPS
    • CONSUMER - SWITCHING
      • Retention strategies should focus on the 25–34 age segment
    • CHANNEL – CHANNEL OPENING
      • Digital acquisition could negatively affect NPS
        • Table The growth of digital banking in Singapore has only recently increased
    • CHANNEL - CHANNEL ACTIVITY
      • The branch channel is still orientated towards low-value transactions
      • Mobile banking activity is almost identical to the online channel
    • CHANNEL - CHANNEL SATISFACTION
      • Singaporean current account holders are not satisfied with their experience across all channels
  • SAVINGS ACCOUNTS
    • MARKET – MARKET SIZING & FORECASTING
      • Singapore retail deposits are expected to grow at a healthy rate over the forecast period
    • MARKET – MARKET SHARE
      • The market for main savings accounts is highly concentrated
    • PRODUCT – PRODUCT FEATURES
      • Singaporean banks are underselling notice accounts to mass affluent consumers
    • CONSUMER - CHOICE OF PROVIDER
      • Singaporeans prefer to save with a known entity
    • CONSUMER - REASONS FOR SAVING
      • Savers in Singapore are harder to win over
    • CHANNEL – CHANNEL OPENING
      • Digital channels for research or acquisition need to be reviewed
        • Table Singapore and Malaysia trail in digital acquisition
    • CONSUMER - RECOMMENDATION
      • Communication with consumers needs to be improved
  • MORTGAGES
    • MARKET – MARKET SIZING & FORECASTING
      • Gross mortgage advances lending will decline over the next few years
    • MARKET – MARKET SHARE
      • The mortgage market is the most competitive of all products
    • PRODUCT – PRODUCT FEATURES
      • The lack of cashback or offset features suggests simplicity is attractive
    • CONSUMER - CHOICE OF PROVIDER
      • Singaporean mortgagors are least likely to be driven by convenience
    • CHANNEL - CHANNEL OPENING
      • Consumers still prefer the comfort of face-to-face contact when arranging their mortgages
        • Table Singapore is less reliant on online application than Australia and Malaysia
    • CONSUMER - RECOMMENDATION
      • Widening access to certain product features could raise NPS
  • PERSONAL LOANS
    • MARKET – MARKET SIZING & FORECASTING
      • Consumer credit originations will grow moderately over the forecast period
    • MARKET - MARKET SHARE
      • The personal loans market is a possible point of entry for foreign banks
    • PRODUCT - PRODUCT FEATURES
      • The Singaporean personal loans market is the least price-sensitive in region
    • CONSUMER - CHOICE OF PROVIDER
      • Singaporean borrowers prefer known entities for sources of credit
    • CHANNEL - CHANNEL OPENING
      • Loan application channels are diversified in Singapore
        • Table Most popular research channel
    • CONSUMER - REASONS FOR BORROWING
      • Debt consolidation and educational expenses are the main reasons for taking out loans
    • CONSUMER - RECOMMENDATION
      • A significant proportion of Singaporean borrowers are detractors
  • BANK INFRASTRUCTURE & REGULATION
    • MARKET - INFRASTRUCTURE
      • Smartphone ownership shows potential for expanding digital banking
    • MARKET - REGULATORY ENVIRONMENT
      • Singapore's regulatory landscape is supervised by a single regulator
    • MARKET – RECENT REGULATORY DEVELOPMENTS
      • Regulatory authorities are attempting to tighten up the financial services market
  • APPENDIX
    • Abbreviations, acronyms, and definitions
    • Methodology and further reading

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report