The report notes that the Monetary Authority of Singapore’s issuance of five new digital banking licenses will affect existing banks. It says that more and more customers are keen to try out new digital challengers.
Overall, customers’ satisfaction with their primary bank decreased marginally to 749 in 2019 from 755 in 2018. JD Power’s surveys operate on a 1,000 point scale.
Nearly two-thirds (65%) of customers are interested in opening digital bank accounts, compared with 52% last year. This disruption is likely to spur traditional banks to up their game in meeting evolving customer needs.
The study also finds that nearly half of the customers (47%) have multi-account programmes. These accounts enable banks to attract new funds, but more importantly provide ways to deepen relationships with their customers.
However, 23% of customers with these accounts are likely to switch their primary bank for better interest in the next 12 months. This compares with 14% of customers who are not using multi-account programmes.
This brings into question whether this move by the banks to increase customer loyalty is actually achieving its purpose.
HSBC ranks highest in retail banking customer satisfaction with a score of 769. OCBC ranks second with a score of 764 and DBS ranks third with 752.
POSB and Standard Chartered come next each with scores of 746 ahead of Citi on 742.
UOB and Maybank round off the survey with 735 and 724 respectively.
The study measures overall satisfaction in six factors. These are account activities (39%); account information (17%); facility (12%); product offerings (12%); problem resolution (11%); and fees (10%).