Sustainability, data key to survival for new players eyeing Singapore’s digital bank market

Digital banks looking to succeed in Singapore cannot simply look to grow their customer base and offer competitive pricing, but will also need to ensure they have a growth strategy that is sustainable. Data, too, will prove vital in enabling these market entrants to differentiate their services from traditional banks and provide richer customer experience. If there is one thing market entrants could learn from their peers in other markets such as the UK, it would be that focusing aggressively on customer acquisition alone will not be sufficient. They will have to establish a sustainable business model, which is critical for ensuring success is not be short-lived, said Forrester’s senior analyst Zhi-Ying Barry, in an email interview. And with traditional banks such as DBS already investing heavily in and operating their own digital services, new players would have to differentiate themselves through the user experience — enabled by digital technologies — they deliver to customers, Barry said. Singapore last June announced plans to issue up to five digital bank licences as part of efforts to add market diversity and boost the banking system in the country, as it looked to become a digital economy. This meant that non-bank organisations would… Read full this story

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