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24 August 2007
Singapore
August 24, 2007, Singapore: As increasing number of consumers switching to online banking, the voice of the bank brand is shifting from the High Street to Websites - 14 percent of the world’s Internet users banking online as often as daily and 32 percent claiming to bank online at least two or three times a week, according to a study released by The Nielsen Company.
The Nielsen Company surveyed 25,408 internet users in 46 markets from Europe, Asia Pacific, North America and the Middle East about how often they use a variety of banking services, including Internet and telephone banking, ATMs and branches.
In Singapore, the Internet and ATM are the more frequently utilized banking services by local online respondents. The Nielsen survey found over one in 10 (11%) of locals bank online daily, and a further 36 percent do so at least once a week. On the other hand, even though the ATM is used by less people everyday (7%), it is a channel which more than three-fifths (64%) of locals go to at least once a week.
“The Internet has opened a whole new world to consumers, who now have a host of banking services at their fingertips, without needing to leave their homes or offices, anytime, anywhere,” said Connie Cheng, Associate Director, Client Solutions, The Nielsen Company Singapore.
In comparison to the Internet and ATM banking, less people are visiting the bank branches for banking services. Only 30 percent of the online respondents visit the bank branches at least once a month, and close to six in 10 (58%) would visit occasionally, at a frequency of less than once a month. Telephone banking appears least popular where almost three-quarter (74%) of the online respondents professed that they have never used the service before.
Around the world, the Nielsen survey found nearly one third of Brazilians and Portuguese (30%) bank online daily, along with 28 percent of Poles and 27 percent of Chileans. In Asia, a significant number of Kiwis (25%), Indians (20%) and Hong Kongers (18%) claim to bank online everyday, compared to a global average of 14 percent.
ATM follows the Internet as the second most frequently used banking service, with 42 percent claiming to use an ATM on a weekly basis. Hong Kong leads the world, with 68 percent of people claiming to use an ATM on a weekly basis, followed closely by the Irish (67%) and Singaporeans (64%).
Unless the completion of paper-work and speaking in person are a must, less are now willing to visit or queue in a branch. Globally, 14 percent claim never to have visited a branch, a third will do it on a monthly basis and another third claim to visit even less than once a month. Europeans were least likely to be seen in a branch, with 36 percent of Swedes claiming never to visit, followed by the Dutch (34%), Norwegians and Russians (30%). Six of the top 10 markets claiming never to visit branches hailed from Europe, but also included Vietnam (29%), Argentina (26%) and Hong Kong (20%).
“One could say that banks have been successful in shifting their customers to online banking, with 46 percent claiming to visit a branch only occasionally but less than once a month. However, the other side of the coin is that banks are facing greater challenges in keeping their customers engaged,” continued Ms Cheng. “With the enormous amount of information available online, banks need to understand how to connect with and retain their customers, who are better-informed and don’t feel the need to visit their bank in person as often as they used to.”
Click here for the full report.
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