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Security tops Singapore bank customer concerns
Consumers fear fraud, want fast, seamless and secure experiences in today’s digital age
The Asset 23 Sep 2024

Strengthening online security tops the innovation wishlist of Singapore banking customers, with “money lock” to prevent withdrawals emerging as the most sought-after innovation, ranking above features like cardless withdrawals and voice-activated virtual assistants, according to a recent survey.

Overall, when it comes to customer experience, the top priority for surveyed consumers is feeling confident that their personal information and assets are secure, finds global fintech FIS’ survey of over 1,000 retail banking customers in Singapore, which was conducted in July-August 2024. While 86% consider this extremely or very important, 68% are satisfied with their bank’s performance in this area.

Notably 92% of surveyed consumers expressed concern over online banking fraud. The majority of surveyed consumers (56%) also believe online banking fraud attempts have been ‘on the rise’ in the past 12 months, versus 27% that see it as unchanged.

Additionally, almost a quarter of Singaporeans surveyed have been a victim of online banking fraud, underscoring the scale of the problem.

These problems, FIS points out, have prompted coordinated efforts by the government, law enforcement, banks and fintech players. Fraud incidents are most widespread among surveyed millennials (those 28 to 42-years old), 34%, and least prevalent among surveyed boomers (those 59 years old and over), 12%.

Of those surveyed who have experienced fraud, 51% saw their bank assume total responsibility and provide a full refund, versus 32% who received a partial refund. Along those lines, 53% of respondents expected banks to assume full responsibility regardless of the reason for the fraud.

Where the responsibility for fraud ultimately lies, FIS notes, may be addressed in the Singapore government’s new Shared Responsibility Framework that is expected to be rolled out later in 2024.

Banks that double down on security measures for fraud prevention may impose additional steps and inconvenience for customers when carrying out various banking interactions. Most respondents, the survey finds, are seeking a balance of convenience and security across the full spectrum of online banking interactions.

In each category, only a minority of respondents sought convenience over security. Gen Zs (those 18 to 27 years old) were more focused on convenience in areas like checking balances and statements, whereas the boomers were much more conservative across the board.

“By leveraging advanced technologies, banks can anticipate new threats, understand fraud patterns with greater precision, and respond swiftly to emerging risks – ensuring that their customers’ trust and safety is protected,” says Kanv Pandit, FIS’ head of corporates and international banking. “Examining attitudes towards balancing security and convenience, it is clear that consumers want fast and seamless experiences in today’s digital age, however not at the expense of security.”