DBS: Over 100,000 Fresh Digital Users in Q1
As the virtual banking industry sees delayed launches and license issuances, DBS has reportedly observed a sharp spike in digital activity including a $5.6 billion increase in transaction value in the first quarter.
The more than 100,000 new users as of March-end will allow the bank shift projections for 1 million customers to «go fully digital» – defined as those that have not visited a physical branch in 12 months – by one full year, according to a «Business Times» report (behind paywall).
«The pandemic is a catalyst for the [behavioral] change, but we are optimistic that this customer base will continue to embrace online banking,» said Jeremy Soo, head of consumer banking at DBS.
Digital Seniors
One of the most notable trends in the conversion of those aged 50 and above which represented close to 30 percent of the 100,000 fresh users. What’s more, the bank expects this trend to sustain even after the health crisis subsides due to worries about the cleanliness of cash.
«We also foresee that [online transactions] may potentially displace cash transactions with consumers being more conscious about hygiene, particularly for those 50 years and above,» Soo added.
Same, Same But Different
Elsewhere, digital developments have not been as smooth for the new entrants of so-called neobanks – or online-only lenders – in light of the ongoing coronavirus pandemic.
In Singapore, the regulator has postponed the issuance of licenses to the second half of 2020 for financial institutions to remain focused «ensuring monetary and financial stability». In Hong Kong, 6 out of 7 licensed virtual banks have yet to launch, missing the February deadline the local central bank predicted last year.
