Why only 9% of Singaporeans prefer to use banking apps

This is against the global average of 13%.

It seems that Singaporeans are not that eager to use mobile banking apps, a report from HSBC said. 

According to the report, whilst 66% currently use online banking, the uptake for newer experimental banking is lower. Only 9% surveyed prefer to use banking apps via their smartphone or tablet to manage their money which is below the global average of 13%.

HSBC Bank Singapore head of retail banking and wealth management Anurag Mathur said this has something to do with Singaporean's cautious attitude towards adoption of technology and innovation, especially in banking.

"Trust in technology is built over time and is based on hard evidence and experience. Caution is further amplified when money is at stake and Singaporeans have traditionally valued stability and security in banking, although they are open to change," Mathur noted.

Whilst tech-literate, Singaporeans are particularly concerned with cyber security and are slow on the uptake of new technology largely due to a lack of understanding on how to combat cyber risks.

The report finds that 73% (Global: 56%) of surveyed Singaporeans are extremely or very concerned about personal data leakage. Yet, Singaporeans continue to rely on traditional password and numerical pins (64%) rather than other more secure mechanisms to secure their electronic devices.

“What we have here is a catch-22 because when it comes to banking technology, trust has to be earned and this is solely driven by familiarity with new technology which is low. Similarly, consumers see security of finances as paramount but they are still relying on antiquated security that emerging technology will help overcome,” Anurag added.

Meanwhile, Singaporeans are more open to adoption in future largely based on their high trust in the ability of institutions to oversee the transition in a responsible and safe way.

Although only 24% currently use fingerprint recognition as a method of identification, 47% agree that fingerprint recognition would be the top trusted replacement for their passwords. Similarly, 51% believe that the future of identity recognition will be entirely biometric-based within 10 years. They believe biometrics such as fingerprint recognition and facial coding will be used to access their financial information.

Regulation plays a role in guaranteeing consumer faith in banks when introducing new technology with 75% of Singaporeans saying it is essential or very important that new technology is regulated for security.

The Singapore government’s early push under its Smart Nation Initiative to encourage digital innovations has created a conducive environment for such discussions on a public scale. An example was the recent launch of PayNow, a common payments system that allow customers of various partner banks to transfer money using their mobile numbers or National Registration Identity Card number.

Mathur further noted, “The Singapore government’s recognition of the importance of financial technology in maintaining its status as a regional financial hub means that a lot of effort is being put in place to support innovation in the financial services. Singaporeans’ open and positive attitudes towards innovation in future is a reflection of the government’s efforts in embracing technological changes.”