Strengthening online security has emerged as the top priority for Singapore banking customers, with a “money lock” feature to prevent unauthorized withdrawals ranking as the most desired innovation. This security measure was preferred over other features like cardless withdrawals and voice-activated virtual assistants.
In terms of overall customer experience, the top concern for surveyed consumers is ensuring their personal data and financial assets are secure. While 86% of respondents consider this extremely or very important, only 68% are satisfied with their bank’s current performance in this area.
These findings come from a comprehensive survey conducted by global financial technology leader FIS®, which polled over 1,000 retail banking customers in Singapore. The study focused on consumer attitudes toward online banking, experiences with fraud, and approaches to investing.
Rising Concerns Over Banking Fraud
According to the survey, 92% of respondents expressed concern about online banking fraud. Over half of those surveyed (56%) believe that fraud attempts have increased in the past year, compared to 27% who see no change. Alarmingly, nearly a quarter of the respondents reported being victims of online banking fraud. This issue is particularly prevalent among Millennials (28-42-year-olds), 34% of whom reported experiencing fraud, compared to only 12% of Boomers (59+).
The rise in fraud cases has led to coordinated efforts from the Singapore Government, law enforcement, banks, and fintech companies. FIS is at the forefront of these efforts, with Kanv Pandit, Head of Corporates and International Banking, stating: “As online banking fraud becomes more sophisticated, FIS is heavily investing in new technologies, including AI and machine learning, to help banks prevent scams. These innovations will allow banks to anticipate and address emerging fraud threats, thereby safeguarding customer trust.”
Striking a Balance Between Convenience and Security
Among those who experienced fraud, 51% received full refunds from their banks, while 32% were partially compensated. Interestingly, 53% of respondents believe banks should take full responsibility for fraud, regardless of the circumstances. This issue may be addressed by Singapore’s upcoming Shared Responsibility Framework, set to launch later in 2024.
While banks ramp up security, they may introduce additional steps that could inconvenience customers. However, FIS research shows that most consumers are looking for a balance between security and convenience across all online banking interactions. Although some respondents, particularly Gen Zs (18-27-year-olds), prioritize convenience for simple tasks like checking balances, older generations, such as Boomers, tend to favor stronger security measures.
Kanv Pandit added: “Consumers want fast and seamless digital experiences, but not at the cost of security. Banks that fail to meet these expectations risk losing customers. FIS remains committed to helping banks enhance security while ensuring customer satisfaction remains high.”
This survey highlights the growing demand for enhanced security measures among Singapore banking customers and the need for banks to evolve their fraud prevention strategies to maintain trust in the digital age.
