A majority of small and midsize businesses (SMBs) in Singapore are optimistic that digital banks will help slash their overall banking costs and bring about greater service efficiencies. Some 88% will consider moving some services to neobanks, as the country prepares to kick off its digital banking regime later this year.
SMBs in Singapore expressed frustration over a lack of good corporate products and control of their banking experience, according to a Visa study released Tuesday. Conducted in March, the survey polled 513 respondents who were employees or decision makers at local SMBs.
They pointed to a need for greater convenience, value, and the ability to track payments and manage cashflow. Some 85% preferred personal banking products over corporate options because the former provided greater convenience and value. About 53% used personal bank accounts for their business transactions with the belief that interest rates on corporate accounts fell behind those of personal accounts.
The apparent gap in expectations and service delivery reflected an untapped SMB segment that digital banks could address. The study found that 55% of respondents believed digital banks could lower their overall banking costs, while 54% said they could gain more convenience, and another 53% pointed to greater ease in paying bills online. Some 58% also lauded the 24 by 7 availability digital banks provided and 56% appreciated the ease of making digital payments and transfers.
Visa's country manager for Singapore and Brunei, Kunai Chatterjee, said: "The digital banking experience for SMBs has not evolved at the same pace as consumer banking and the services that exist are not as sophisticated. With traditional banks looking to become more digitally focused and new neobank challengers introducing innovative solutions to serve this segment, we believe more SMBs will embark on their digital transformation journey adopting