Online Banking in Singapore 2008: Industry Report

Online Banking in Singapore 2008

Product Type: Market Research Report
Published by: Datamonitor
Published: July 2008
Product Code: R313-34210

Description

Introduction

The Singaporean online banking market is among the most advanced in the world, with a high proportion of the population using the online channel. Financial institutions regularly use Singapore as a trial market for new products, and the Singaporean government has supported technological advances.

Scope

Includes a comprehensive overview of the Singaporean online banking market.
Provides online banking customers data and market share of top competitors.
Discusses security issues and two-factor authentication.
Analyzes current trends in the market.

Highlights

Although small in terms of geographical size and population, Singapore is a major port of trade and financial centre in South East Asia. Because of this, there are more than a hundred foreign banks in Singapore, apart from the six domestic banks.

Customer loyalty and satisfaction are positively correlated with online banking. Surveys show how online banking functionality consistently is ranked more satisfactory than other banking services by consumers, and the degree of satisfaction has increased over the last five years.

Financial institutions should not only strengthen security, but also engage in PR activities to ensure media correctly report the facts about online security, as well as educating its customer base. Both perceived and actual security must continually be developed.

Reasons to Purchase

Improve your strategic position using Datamonitor's in-depth analysis of the Singaporean online banking market.
Understand the unique challenges the online banking market is facing, and benefit from forecasts of future product trends.
Plan for the future by learning from one of the most innovative financial markets in the world

Table of Contents

Overview: Catalyst; Summary; Executive Summary; The state of online banking in Singapore; Singapore is a highly connected nation; Online banking is commonly used by Singaporeans; Singapore is at the forefront of new technology; Competitive dynamics of the Singaporean online banking market; There are 30 full banks in Singapore; Two-factor authentication has been managed in different ways; There are three main strategies when it comes to online banking for traditional banks; Future focus; Online will become the dominant channel; Security will continue to be the main concern for consumers; Singapore will remain on the cutting edge of innovation; Table of Contents; Table of figures; Table of tables; The State of Online Banking in Singapore; Singapore is a highly connected nation; Singapore has one of the highest mobile phone penetrations in the world; Internet usage is widespread in Singapore; Singapore rapidly absorbs new technology; Broadband is achieving traction in Singapore; Online banking is commonly used by Singaporeans; The majority of Singaporeans have used the internet in the last 12 months; The number of online banking customers has increased strongly since 2002; Online banking has contributed to deposit growth in Singapore; Online banking is often correlated with an increase in deposits; Bank deposits have grown strongly in Singapore; Savings deposits have not kept up with growth in the last five years; Singapore is at the forefront of new technology; Singapore is an ideal trial market for new products; Several innovations in online banking have been introduced in Singapore; Competitive Dynamics of the Singaporean Online Banking Market; There are 30 full banks in Singapore; As a financial center Singapore has attracted a substantial foreign bank presence; There are six major online banking sites in Singapore; DBS has a dominant market share of online banking customers; Many customers of Singaporean online banking connect from other countries; Two-factor authentication has been managed in different ways; Online security may be increased with two-factor authentication; Two-factor authentication was mandated in 2005 by MAS; Two-factor authentication was welcomed by Singaporean consumers; Banks in Singapore have employed different strategies; Hardware tokens are falling out of favor; SMS notifications eliminate the need for a separate device; Mobile phone software eliminates the need for network access; Mobile phone banking will demand other authentication methods; Banks have different strategies when it comes to online banking; There are three main strategies when it comes to online banking for traditional banks; Singaporean banks were quick to react to online banking; Several local Singaporean banks have tried launching standalone internet banks; The internet channel will become more important for all kinds of banks; A wide range of products and services are offered online; All Singaporean online bank offerings include basic transactional banking; Advanced online services are offered through Singaporean online banking portals; Alert services are offered by most Singaporean online banks; Value added and auxiliary services are often offered online; Promotions have been used to attract online banking customers; Online banking sites offer demonstration tours; Future Focus; Online will become the dominant channel; Online banking will be used for the vast majority of transactions; Online transactions cost less for providers; Younger generations prefer the convenience of the online channel; Increased internet usage and broadband penetration will continue to drive uptake; Satisfied online customers create a domino effect; More banking products will be arranged and managed online; The number of online banking customers in Singapore will grow to 3.8 million by 2011; Security will continue to be the main concern for consumers; Consumer security concerns have always been the biggest hurdle for online banking; Security is an ongoing process; Singapore will remain on the cutting edge of innovation; New technologies will be pioneered in Singapore; Mobile phone banking will continue its gradual growth; Mobile phone banking is forecasted to reach 600 million customers globally by 2011; New and prospective customers are mainly interested in basic mobile banking services; Online banking services will become more personalized and customized; ATM functionality will keep increasing and complement online banking; Account aggregation has yet to catch on
APPENDIX: Supplementary data; Definitions; CAGR; Demand deposits; Fixed deposits; Savings deposits; Methodology; Further reading; Ask the analyst; Datamonitor consulting; Disclaimer
List of Tables: Table 1: Different Singaporean banks offer different 2FA solutions; Table 2: Full retail banks in Singapore, 2008; Table 3: Singaporean online banking sites and traffic rankings, June 2008; Table 4: Number of customers regarding bank as main online banking institution, 2008; Table 5: Top ten non-Singaporean locations for visitors of Singaporean online banking sites, 2008; Table 6: Different Singaporean banks offer different 2FA solutions; Table 7: Advantages and disadvantages of different 2FA solutions; Table 8: Mobile phone subscribers per 100 inhabitants in selected countries, 2007; Table 9: Internet users per 100 inhabitants in selected countries, 2007; Table 10: Internet users per 100 inhabitants in Singapore, 1998-07; Table 11: Broadband subscribers in Singapore, 1998-07; Table 12: Internet access and usage in Singapore, 2000-06; Table 13: Proportion of internet users who have used online banking in Singapore, 2002-04; Table 14: Proportion of internet users who have used online banking in the last 12 months in Singapore by age group, 2006; Table 15: Singaporean online banking customer numbers, 2002-08; Table 16: Different types of bank deposits in Singapore, 1996, 2001, 2006; Table 17: Different types of bank deposits in Singapore, 2001-06; Table 18: Estimated competitor market shares of online banking customers in Singapore, 2008; Table 19: Location of visitors Singaporean online banking sites, 2008; Table 20: Singaporean online banking customer numbers and forecasts, 2002-11; Table 21: Prospective online banking customers look for, 2005; Table 22: The Global Unisys Security index, 2007; Table 23: The Singaporean Unisys Security index, September 2006-May 08
List of Figures: Figure 1: Online banking has become common in Singapore, 2002-04; Figure 2: DBS has a dominant market share of online banking customers in Singapore; Figure 3: Banks should work on improving both real and perceived security; Figure 4: Mobile phone subscription rates are high in Singapore, 2007; Figure 5: Internet usage is prevalent in Singapore, 2007; Figure 6: Internet penetration has increased strongly in Singapore over the last ten years, 1998-2007; Figure 7: Broadband subscription in Singapore has increased strongly, 1998-2007; Figure 8: Internet access and usage has increased over the last seven years, 2000-06; Figure 9: Online banking has become more common in Singapore, 2002-05; Figure 10: Elderly Singaporean internet users are less likely to use online banking, 2006; Figure 11: Online banking customer numbers have grown strongly since 2002, 2002-08; Figure 12: Bank deposits have grown strongly in Singapore over the last decade, 1996-06; Figure 13: Fixed deposits have become more common in Singapore, 2001-06; Figure 14: DBS has a dominant market share of online banking customers in Singapore, 2008; Figure 15: Visitors to Singaporean banking sites come from different countries, 2008; Figure 16: Hardware tokens are offered for two-factor authentication in Singapore; Figure 17: The main steps in SMS based two-factor authentication; Figure 18: The DBS online demonstration tour shows the services available online, June 2008; Figure 19: The online channel is the cheapest for banks and the most convenient for customers; Figure 20: Online banking customer numbers will increase over the next three years, 2002-11; Figure 21: Security is paramount for prospective online banking customers, 2005; Figure 22: Singaporeans are concerned about security, 2007; Figure 23: Security concerns in Singapore have eased somewhat since May 2007; Figure 24: Banks should work on improving both real and perceived security

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