1 in 5 Singaporeans cut back on digital banking due to spike in ID verifications » Singapore News

SINGAPORE: A recent report from FICO shows that Singaporeans have little understanding of inefficient online experiences.

The findings indicate that 63% of Singaporeans expect to answer no more than ten questions when opening a personal bank account online. If the process exceeds this limit, these users are likely to abandon their applications.

FICO’s report also found that 29% of users abandon the application process if more than five questions are asked. Time efficiency is also key, with one in three respondents abandoning a bank account application if it takes longer than 10 minutes, regardless of the number of questions.

There has been a noticeable increase in identity checks over the past year, with 53% of respondents noticing more frequent verifications when logging into bank accounts and 48% when making online purchases. This increase in identity verification measures correlates with the growing concern about identity theft in Singapore.

The report found that 6% of online banking users have experienced fraudulent use of their identity to open an account, and 25% suspect such abuse.

Despite the necessity of these security measures, they have proven to be a double-edged sword. The “cumbersome and time-consuming” identity verification processes have led to one in five customers ceasing or reducing the use of their existing personal bank accounts and credit cards.

In addition, complex and lengthy identity checks have prompted Singaporeans to withdraw applications for personal bank accounts, insurance policies and savings accounts, each at a rate of 25%. Applications for credit cards and mortgages have also been affected, with withdrawals at 24% and 17% respectively.

The report also highlights a significant discrepancy in comfort levels between different types of online applications. Only 17% of Singaporeans are comfortable opening a mortgage account online, while a larger proportion, 34%, prefer to apply for personal loans in person at a bank branch.

Interestingly, despite these challenges, Singaporeans recognize the benefits of digital banking. The ability to open an account at any time is seen as the biggest advantage (64%), followed by the speed of the online process (60%).

These findings highlight the importance for banks to streamline their digital onboarding processes, striking a balance between robust security and user-friendly experiences to meet the expectations of their digitally savvy customers in Singapore.

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