The digital expertise of new non-bank providers makes them an inviting alternative to traditional banks. As a result banks core business is under threat.

Consumers have moved from the traditional banking ways, such as visiting physical branches, to primarily banking online. Many are more open to trying new digital platforms. A new report from Oracle claims traditional banks may be facing a wave of fresh challenges from digital competitors.

No Loyalty

With customers increasingly comfortable with non-bank options and fintechs, affinity to traditional banks is diluting. To compete with the new providers banks need to deliver value, consistency in services and a higher standard of experience to retain their current customers. 

«Consumers have already made the switch to digital banking for its ease and convenience,» said Sonny Singh, senior vice president and general manager of Oracle's financial services Global unit.

Digital Openness

Oracle surveyed 5,200 respondents from 13 countries around the globe, including in Singapore. Singaporeans were found to be more digitally open (70 percent), than their global peers (67 percent), with the 20-36 Millennial group acceptance reaching 76 percent.

Quizzed on the rise of the non-banks nearly half of Singaporeans (44 percent), think non-banks assist them better in personal finance than their existing banks.