Digital banking adoption in Singapore is growing faster than the global average, and adoption is set to pick up pace in the coming years, according to a new study.
Some 18 percent of Singaporean adults currently have a digital-only bank account, while another 12 percent plan to open one within the next five years, independent comparison platform «Finder.com» said in a report published Thursday.
Currently, Singapore ranks 13th among 30 countries worldwide in terms of virtual baking adoption rate. The study polled 41,654 people across 30 countries to compare the rate of digital-only banking adoption and to estimate adoption rates in 2026.
The publication cited the Singapore government's efforts to facilitate broader digital banking services and its issuance of licenses to four digital banks, which are expected to launch in 2022, as reasons why it expects digital banking adoption to grow.
Tough Competition
Traditional banks in APAC face a real challenger in virtual banks, which threaten to take market share with efficient, low-cost solutions pit against legacy infrastructure that is transitioning.
DBS, however, previously said that Singapore a relatively less attractive market for digital entrants, as it already has a well-banked population, and it does not expect main bank accounts to be switched away from incumbents.
Indonesia has the second-highest digital-only adoption globally, with 24.9 percent of the market. Vietnam is fourth globally at 23.34 percent. Come 2026, the figure is expected to be 39.02 percent and 41.64 percent respectively.
