Digital customer experience key for Singapore's digibank licensees

FOR Singapore's digital banking licensees, the journey begins now. How can they outmanoeuvre incumbents? The digital customer experience could be key.

On the evening of Dec 4, the Monetary Authority of Singapore (MAS) announced the recipients of the digital full bank and wholesale bank licences. Huge congratulations are in order for the four recipients - but now that the regulators are on board, the work begins to wow the arguably tougher audience: consumers.

Data reveals that only 2 per cent of Singapore's six million residents are unbanked, 40 per cent of Singapore residents are described as underbanked, ie not as well-served as consumers living in other developed nations, such as lacking access to credit cards, or long-term savings products. An S&P Global report, Tech Disruption In Retail Banking, found that record numbers of digital banking transactions have been taking place during the Covid-19 outbreak. Indeed, the nation is rife with opportunities for digibanks to capitalise upon. However, with operations set to commence in early 2022, it is a tight timeline - especially so when some of the new licensees lack any considerable experience in financial services and the banking sector.