And they’re willing to spend big to counter the threat.
Traditional banks and financial services companies in Singapore are losing sleep over the rapid rise of their fintech competitors, according to a report by recruitment firm Robert Half.
The survey showed that financial services companies are most concerned over the popularity of online investment firms, which was cited as the biggest threat by 40% of respondents.
The next biggest impact is expected to be from challenger banks at 18% followed by peer-to-peer lenders (12 per cent).
The survey showed that banking and financial services leaders know their businesses are under threat with many prepared to increase spending to counter fintech challengers.
“Singapore banks and financial institutions are actively countering this threat by upgrading their own user interfaces and moving more of their interactions to mobile and digital,” said Stella Tang, Managing Director of Robert Half Singapore.
“The challenge to banks and financial institutions is to ensure they do not lose their customers to new firms offering easier, cheaper or more intuitive ways to compare and acquire the financial services they need. While the disruptive challengers pose a threat to traditional banks and financial institutions, there is still a long way to go before they topple the established banking hierarchy in Singapore,” said Tang.
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