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81 percent Singapore affluent middle class use banking apps

Anuradha Shukla | July 18, 2016
Use apps to engage with financial service organisations, says Collinson Group.

Eighty-one percent  of Singapore affluent middle class use banking and finance apps to engage with financial service organisations, according to a newly released report by Collinson Group.

Ninety-five percent of Chinese and 84 percent of Hong Kong affluent middle class use banking and finance apps to engage with these organisations.

The report suggests that financial services brands that want to engage affluent middle class customers in Asia are at risk of being left behind if they do not meet the expectations of these customers in terms of digital experiences.

Financial services brands should act now to upgrade their loyalty infrastructure as the spending power of Millennials and Generation Z is expected to increase in the next five years.

"Digital will be the biggest battleground in financial services as digitally native Millennials and Generation Z become more lucrative target audiences for the sector," said Chris Rogers, director, Collinson Group. "We can expect to see digital engagement continue to soar over the next three to five years. Brands need to act now in order to improve their digital offering, or risk missing the opportunity to build loyal relationships with lucrative audience segments."

Faster innovation

Organisations are facing new customer expectations as Millennials are pushing them to innovate faster and are defining these expectations.

More than half (55 percent) of affluent middle class consumers in Singapore prefer to bank digitally (online or mobile app).

Fifty-seven percent of these consumers make digital payments whenever they can, and 52 percent believe mobile banking is incredibly important.

Forty percent of affluent middle class consumers in Singapore use digital wallets such as Apple Pay, Google Wallet and PayPal and 34 percent use digital vouchers on a smartphone.

"Embracing digital tools will allow brands to communicate and engage their customers in more meaningful ways, and digital applications can be used to drive bank wide loyalty," added Rogers. "Doing this will help create active digital footprints and take the next step beyond loyalty to fully fledged brand advocacy."

 

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