Research by YouGov on consumer attitudes towards various financial service providers reveals that fewer than half in APAC say they trust digital-only banks (44%) compared to almost three-quarters for traditional banks (73%). Digital-only banks, which exist entirely online and have no physical presence, are also known as neo- or virtual banks.
An earlier YouGov study found that the vast majority of consumers in Australia, Hong Kong, Indonesia, Singapore have concerns about using digital financial services – such as digital-only banks, e-wallets and cryptocurrencies. Those concerns include too much risk from hackers, potential identity theft, not having access to their money without an internet connection, and insufficient fraud protection measures.
Wariness of digital-only banks is highest among consumers in Indonesia and Singapore – where trust in these internet-only banks is at least 40 percentage points lower than that for traditional banks. While more than four in five Indonesians trust traditional banks (82%) fewer than two in five trust digital-only banks (38%). Similarly, more than three-quarters of Singaporeans trust traditional banks (78%), but fewer than two in five trust digital-only banks (37%).
Confidence in digital-only banks is highest among consumers in Australia and India – where trust is at most 21 percentage points lower than that for traditional banks. More than three in five Australians trust digital-only banks (62%) versus three-quarters for traditional banks (75%), while more than half of Indians trust digital-only banks (51%) versus under three-quarters for traditional banks (72%).
Meanwhile, in China and Hong Kong, trust in digital-only banks lags that of traditional banks by 30 and 37 percentage points respectively.
How does trust in digital-only and traditional banks vary across different generations in key APAC markets?
Among Gen Z consumers in APAC, on average, two in three trust traditional banks (67%) while under half have faith in digital-only banks (48%).
Trust in digital-only banks lags traditional banks the most among Gen Z consumers in Singapore (by 29 points) and Hong Kong (by 26 points) – above the APAC average of a 19-point trust gap – less so in Indonesia (by 13 points) and Australia (by 8 points).
Notably, Gen Z consumers’ trust of digital-only banks in Hong Kong (39%) is significantly lower than that of the APAC average (48%). Additionally, Gen Z consumers’ trust of traditional banks is also significantly lower in Australia (53%) but significantly higher in Singapore (79%) when compared to the APAC average (67%).
Among Millennial consumers across the whole of APAC, five in seven trust traditional banks (72%) while under half would have confidence in digital-only banks (47%).
Trust in digital-only banks lags traditional banks the most among Millennial consumers in Hong Kong and Singapore (both by 33 points) – above the APAC average of a 25-point trust gap – less so in Indonesia (by 22 points) and Australia (by 15 points).
Notably, Millennial consumers’ trust of digital-only banks in Hong Kong (37%) and Singapore (40%) is significantly lower than that of the APAC average (47%). Additionally, Millennial consumers’ trust of traditional banks in Australia (61%) is also significantly lower than that of the APAC average (72%).
Among Gen X consumers in APAC, on average, three in four trust traditional banks (77%) while over two-fifths would put their faith in digital-only banks (44%).
Trust in digital-only banks lags traditional banks the most among Gen X consumers in Hong Kong (by 44 points) and Singapore (by 42 points) – well above the APAC average of a 33-point trust gap – less so in Indonesia (by 26 points) and Australia (by 28 points).
Notably, Gen X consumers’ trust of digital-only banks in Singapore (34%) and Australia (36%) is significantly lower than that of the APAC average (44%). Additionally, Gen X consumers’ trust of traditional banks is also significantly lower in Australia (64%) but significantly higher in Hong Kong (85%) when compared to the APAC average (77%).
Among Baby Boomer consumers across the whole of APAC, four in five trust traditional banks (81%) while just one-third feel the same about digital-only banks (33%).
Trust in digital-only banks lags traditional banks the most among Baby Boomer consumers in Hong Kong (by 62 points) – much higher than the APAC average of a 48-point trust gap. This is relatively less so in Indonesia (by 51 points), Singapore (by 50 points) and Australia (by 47 points).
Notably, Baby Boomer consumers’ trust of digital-only banks in Australia (23%) is significantly lower than that of the APAC average (33%). Additionally, Baby Boomer consumers’ trust of traditional banks is also significantly lower in Australia (70%) but significantly higher in Hong Kong (96%) when compared to the APAC average (81%).
Read YouGov's latest consumer research in the finance sector:
What are consumers' top concerns about using digital financial services in Australia, Hong Kong, Indonesia, Singapore?
What do consumers most consider when choosing a financial service provider in Australia, Singapore, Indonesia, Hong Kong?
How does consumer trust in digital wallets and Buy Now Pay Later services vary across different markets and age groups in APAC?
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Methodology: YouGov Custom Research is a full end-to-end service from YouGov experts, from sample framing and questionnaire design to analysis and more, which provides bespoke market intelligence and research insights. APAC data figures (N = 5,653) include the following markets: Australia, China, India, Indonesia, Hong Kong and Singapore.
Australia data figures (N = 1,018) have been weighted by age, gender, and region to be representative of all adults in Australia (18 years or older), and reflect the latest Australian Bureau of Statistics (ABS) population estimates. Hong Kong data figures (N = 513) have been weighted by age and gender to represent the adult online population in Hong Kong (18 years or older), and reflect the latest Hong Kong Census and Statistics Department (C&SD) population estimates.
Indonesia data figures (N = 1,034) have been weighted by gender, age, socioeconomic class, city tier to be representative of the adult online population in Indonesia (18 years or older), and reflect the latest Indonesian Bureau of Statistics (BPS) population estimates. Singapore data figures (N = 1,063) have been weighted by age, gender, and ethnicity to be representative of all adults in Singapore (18 years or older), and reflect the latest Singapore Department of Statistics (DOS) estimates.
