Consumer confidence in digital banking has risen strongly in past two years – but large majority would trust ‘Big Tech’ with their finances at least as much as a bank
HONG KONG, Nov. 29, 2022 /PRNewswire/ — Hong Kong consumer confidence in digital banking is rising but trust is no longer a bank monopoly, according to a new Asia-Pacific focused Bank of the Future survey from Capco, the global technology and management consultancy.
Capco surveyed 707 Hong Kong consumers to gauge their attitudes to banking services at a time of rapid change in the retail banking industry. The findings form part of a larger survey of nearly 5,000 consumers across five markets in the Asia-Pacific region.
No less than 86% of the Hong Kong consumers surveyed say they would now trust ‘Big Tech’ to fulfil their banking services as much as or more than they would a bank – with 56% saying they would trust ‘Big Tech’ more.
Hong Kong respondents surveyed say they want a better online banking experience from their providers and more visibility across banking products. Most (61%) say they are at least willing to think about sharing personal data to drive a greater personalization of products. More than sixty percent (64%) of consumers would find it ‘extremely’ or ‘very’ attractive to have an app that gave them better visibility and more personalized insights into all their financial products, such as bank accounts, pensions, insurance, and investment.
Key themes to emerge from the Hong Kong survey include:
1. Consumers open to idea of sharing personal data, but the type of data is important – Most consumers are open to the idea of unlocking personalization by sharing more personal data, such as social media profiles and wearables data, with 22% expressing enthusiasm and a further 39% saying they were willing to consider it. Customers are happiest sharing information around health and fitness tests, loan and credit history, location data and life events – but less keen to share items such as information relating to other bank accounts or their web browser history.
2. Consumers expressed interest in cryptocurrency trading via banks – Around 30% of Hong Kong respondents said it would be ‘very interesting’ if their current or future bank offered the ability to trade in cryptocurrency, despite past volatility and turmoil in crypto markets. Hong Kong’s regulators are currently taking a second look at whether and how to legalize retail trading of crypto assets.
3. Banks’ sustainability credentials are of varying importance to consumers, depending on their age – Across all age groups, 27% rate the sustainability credentials of their banking services as ‘extremely important’. This figure rises to 46% for the 55-64 age group, with a further 26% saying it was ‘slightly important’. This compares to 7% for those aged 18-24 years; 59% in this demographic rated sustainability credentials as ‘slightly important’.
Danny Wan, Executive Director and Head of Strategy at Capco in Hong Kong said: “Our survey findings reveal that ease and convenience, along with a single gateway to multiple services, are of fundamental importance for Hong Kong bank customers today. However, customers do not want a simple aggregator, but rather for banks to offer personalized insights and advice, including money saving opportunities.”
Paul Sommerin, Partner and APAC Head of Digital & Technology: “More than half of customers were open to the idea of the metaverse as a future channel for digital banking services, despite it being a largely unproven concept. Hong Kong’s banks need a forward-thinking and compelling strategy around an array of digital channels and deliverables, including apps, highly personalized products, AI-driven advisory and even emerging metaverses. At the same time, they must strike the right balance between data sharing and privacy considerations.”
James Arnett, APAC Managing Partner at Capco, said: “Retail banking services across Asia-Pacific are undergoing a seismic transformation. Digital-savvy, mobile-oriented consumers are playing a key role in reshaping banks’ priorities and the wider banking ecosystem. New technologies are granting consumers unprecedented freedom to pick and choose how they engage with their bank(s), access more personalized services, and see a more complete single view of all their finances. As incumbent banks and their competitors aim to support consumers’ personal and lifestyle ambitions, our survey findings throw new light on the priorities that will define the Bank of the Future.”
Survey Methodology
The survey was conducted online during September and October 2022 and collected responses from a total of 4,889 respondents in five Asia-Pacific markets. Individual samples sizes – Hong Kong: 707; Greater Bay Area (ex-Hong Kong): 1293; Singapore: 1,000; Thailand: 890; Malaysia: 999. Survey respondents were drawn from six age groups – 18-24, 25-34, 35-44, 45-54, 55-64, and 65+ – and sample sizes were representative of age-related demographics in each market.
About Capco
Capco, a Wipro company, is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. With a growing client portfolio comprising of over 100 global organizations, Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit or follow us on Twitter, Facebook, YouTube, LinkedIn and Instagram.
