Survey: Security top concern for online banking in Singapore

A new consumer survey by FIS has highlighted that security is the foremost priority for online banking customers in Singapore amid increasing concerns over online fraud.

The survey, which canvassed over 1,000 retail banking customers, reveals significant insights into consumer attitudes towards online banking security and their experiences with fraud.

According to the findings, 56% of respondents believe that fraud attempts in online banking have risen over the past year. Millennials reported the highest incidences of fraud, with 34% having experienced it, compared to only 12% of Boomers. The prevalent concern about online banking fraud prompted coordinated efforts by the Singapore Government, law enforcement, banks, and fintech firms to address the issue.

Commenting on the findings, Kanv Pandit, Head of Corporates and International Banking at FIS, stated, "As online banking fraud becomes increasingly sophisticated, FIS is strategically investing in the implementation of new technologies to aid banks in their fight against scams. This includes embedding AI and machine learning in our products to mitigate fraud in billions of transactions. By leveraging advanced technologies, banks can anticipate new threats, understand fraud patterns with greater precision, and respond swiftly to emerging risks – ensuring that their customers' trust and safety is protected."

The survey indicates that the most sought-after innovation among Singapore banking customers is a "money lock" feature to prevent withdrawals, which ranked higher than other features such as cardless withdrawals and voice-activated virtual assistants. A significant 86% of those surveyed consider the security of their personal information and assets as extremely or very important, though only 68% expressed satisfaction with their bank's performance in this regard.

Among those surveyed, 92% expressed concern over online banking fraud. In the past year, 27% observed that fraud attempts remained unchanged, while the majority noted an increase. Nearly a quarter of respondents have been victims of online banking fraud, underscoring the scale of the problem and the necessity for robust security measures.

The issue of responsibility in fraud incidents was also highlighted. Of the respondents who experienced fraud, 51% reported that their bank took full responsibility and provided a complete refund, while 32% received a partial refund. Despite the varied experiences, 53% of respondents believe banks should assume full responsibility for fraud regardless of the cause. The Singapore Government's forthcoming Shared Responsibility Framework is expected to address these concerns.

The research by FIS also found that banking customers are seeking a balance of convenience and security in their online interactions. While Gen Z respondents (18-27) showed a greater preference for convenience, particularly when checking balances and statements, Boomers displayed a more conservative approach across all aspects of online banking.

Kanv Pandit further noted, "Examining attitudes towards balancing security and convenience, it is clear that consumers want fast and seamless experiences in today's digital age, however not at the expense of security. FIS is committed to helping banks unlock financial technology to combat scams and close the satisfaction gap. Banks must act swiftly or risk customers switching banks if security is perceived as not strong enough, particularly around investing and moving money."

As the digital banking landscape evolves, the findings underscore the necessity for financial institutions to innovate and enhance their security measures continually. The survey reflects the heightened awareness and expectations among consumers for secure online banking environments.