Industry Analysis
CHANGES TO BANKING SECTOR IN PAST YEARS
Banking Industry has been evolving rapidly over the past year or so. Although the pandemic took a toll on the banks, various measures were taken to mitigate the issue. With the evolving virtual currency disrupting the industry, banks would have to adapt and implement new measures.
BANKS ARE MOVING ONLINE
With the recent pandemic, many of the bank branches were closed however this didn't stop customers from banking. Banks had to quickly innovate and digitalise their products and services to meet the needs of customers. Banks started to make tele consulting the go-to solution to their customers.
are more likely to bank online post-pandemic
Customers aged 55 and above are confident in using digital banking tools such as ibanking applications and websites which helps to mitigate the visits to respective bank branches
6 9 %
of the baby boomer generation are comfortable with online banking
From this, we can see that the silver generation is starting to use the digital platforms for their banking needs, and hence banks would have to transform from a semi-digital bank to a fully functional digital bank that also offers the same services as those provided at branches, online.
DIGITAL BANK
MAS announced on 28 June 2019 that it will issue up to two digital full banks (DFB) licenses and three digital wholesale banks (DWB) licenses
The value proposition of a digital bank model is to incorporate innovative use of technology to serve the unmet needs of consumers. This includes providing the same functions of a traditional bank but with a touch of technology, providing faster and more efficient services
With no minimum balance and fall below fees!
More than 500,000 customers to sign up for digital bank account with 8 virtual banks by the end of 2nd quarter in Hong Kong as digital banks provide more personalization with the use of Artificial Intelligence and big data
Did you know you could open a digital bank account within 5 minutes all from comfort of their fingertips without the hassle of going to a brick and mortar branch?
of Singapore, consumers are open to migrating to a digital bank.