Singapore vs. Hong Kong: Who is winning the digital banking race?
Singapore's heavy digital users have already reached 35% of its retail banking population.
Singapore and Hong Kong are both global epicentres for technology and finance, but one market is leading over the other in the field of digital banking.
According to RFI Global's latest research, Singapore has seen more rapid growth in their heavy digital users or customers who use only the internet or mobile banking frequently.
Based on data, the percentage of heavy digital users in Singapore has reached more than a third (35%) of its retail banking population as of 2H22.
Growth in heavy digital users, however, has been slower in Hong Kong, with only a quarter of the population identified as heavy digital users in H2 2022.
The report added that Hong Kong still has a higher percentage of traditional users or customers who only use traditional channels such as ATM and phone banking frequently.
Looking at the markets' Net Promoter Scores (NPS) for digital versus traditional banking, RFI concluded that in Singapore, "heavy digital users are more satisfied with their main banks than traditional users, suggesting the success of digital channels."
"Conversely, in Hong Kong, traditional banking resonates more with customers, as evidenced by higher NPS scores among heavy traditional users," RFI said.
NPS is a metric that reflects customer satisfaction and loyalty.
"The contrasting NPS trends between Singapore and Hong Kong emphasise the need for banks to recognize and adapt to regional customer preferences. Singapore leans towards digital banking, while traditional channels hold sway in Hong Kong," RFI said.
"This divergence underscores the importance of a tailored banking approach to cater to the unique needs of each market," it added.