h1 2019 singapore sme banking council market report
TRANSCRIPT
H1 2019 Singapore SME Banking CouncilMarket Report
Presented by: RFi GroupAnalyst: A Bahvaani, Research Analyst - Asia
For questions and enquiries, please contact:Andrew Kim, Client Services Director – Asia, [email protected]
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I N T R O D U C T I O N T O R F i G R O U P
Financial Councils – Global
Priority & Retail Banking Council
Payments & Innovation Council
Merchant Acquiring Council
Digital Banking Council
Commercial BankingCouncil
SME Banking Council
Youth Banking Open Banking/ PSD2 Council
Commercial Payments
B2B Payments Remittance
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I N T R O D U C T I O N T O R F i G R O U P
Financial Councils – Global
Priority & Retail Banking Council
Payments & Innovation Council
Merchant Acquiring Council
Digital Banking Council
Commercial BankingCouncil
SME Banking Council
Youth Banking Open Banking/ PSD2 Council
Commercial Payments
B2B Payments Remittance
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Agenda
• Research methodology
• Firmographics
• General banking landscape
• Business Banking
• Products Holdings
• Business Operating Accounts
• Trade-related Products and Services
• Borrowing Products
• Business Credit/Charge Cards
• Banking Channels
• Future Banking Intentions
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• The data in this report is taken from the H1 2019 SME Banking Council survey.
• The survey was in field during the month of May to June 2019 and was completed in English.
• A total of 364 Singapore SME companies were interviewed online, split into revenue segments (in USD) as follows:
• Below USD 3million: n= 293
• USD 3million – 5 million: n= 48
• USD 5 million – 10 million: n= 43
• On slides presenting bank-level information, boost samples were used to increase the sample size. For the results
labelled as Total, boost(s) was removed so the overall results become representative of SMEs in general.
• Due to changes to the survey’s coverage ahead of H1 2017, trending in some cases might not be possible.
• For single response questions, totals may not add up to 100% due to rounding, while for multi-response questions,
totals do not add up to 100% as respondents could choose more than one response.
• Slides marked with an institution’s logo in the title indicate slides that are proprietary to that institution.
• Further data cuts are available to clients on request.
Methodology
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• The H1 2019 Singapore SME Banking Council survey is only asked to respondents who have direct knowledge of their
companies’ financials and are of the following positions.
• Owner/ Operator
• Director
• Chief Executive Officer (CEO)
• Chief Financial Officer (CFO)
• Partner
• Logic checks in the online questionnaire ensure that responses are coherent. Respondents are otherwise terminated
from the survey.
• Fieldwork for the survey is divided into two phases, the soft launch and the full launch. Data check is performed twice,
one after soft launch and the other after full launch.
• Additional checks are performed to remove straight-liners (those that provide the same response for multiple
questions in a row) and duplicates (repeated responses across completed surveys).
Quality Assurance
• Finance Manager
• Managing Partner
• Not for profit Office Bearer
• Managing Director/ General Manager
• Financial Director
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▪ NPS is a measure of recommendation amongst Existing Clients
▪ It correlates well with Intent to buy more amongst Existing Clients
▪ However, smaller brands even with high NPS can have a smaller absolute number of promoters, compared to a larger brand with lower NPS
▪ The introduction of a new product or an exciting scheme in the market by one brand has the potential of disrupting the market. The incumbents NPS may remain high but their sales may not speak the same language in the face of the new product.
▪ Some brands can over-service existing customers thus getting high NPS, at a cost, and focus less on acquisition. NPS surveys can tell us potential acquisition triggers.
▪ There is cultural bias in scoring so we must look at scores trended within each market and Vs competition in each market (not across markets). Markets like India, Indonesia and UAE generally give higher scores, whereas Hong Kong, Korea, Singapore and Taiwan give lower scores.
Net Promoter Score
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Market Report• Firmographics
• General banking landscape
• Business Banking
• Products Holdings
• Business Operating Accounts
• Trade-related Products and Services
• Borrowing Products
• Business Credit/Charge Cards
• Banking Channels
• Future Banking Intentions
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Preview Slides
• Most Important Business banking
• Domestic Banking: Switching Drivers
• Business Operating Account: Satisfaction Drivers
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Most Important Business Banking
Base: SME businesses (H2 2017: n=359; H1 2018: n=364; H2 2018: n=364; H1 2019: n=364)
30%
16%
11%13%
5% 6%5%
2%1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
DBS OCBC UOB Citibank* Maybank HSBC SCB Bank of China CIMB
Most Important Business Banking Relationship
Trended
H2 2017 H1 2018 H2 2018 H1 2019
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Domestic Banking: Switching Drivers
Base: Main domestic business bank customers who intend to switch (H1 2019: Citibank: n=22, DBS: n=73, OCBC: n=20, UOB: n=6, Total: n=196) Note: Tests for significance were carried out on this question ↑█ - Significantly higher than other segments ↓█ - Significantly lower than other segments. *█ - Sample size is small (<30); use indicatively.
Why are you considering switching from your main domestic business banking relationship?By Main domestic business bank
Citibank* DBS OCBC* UOB* Total
A larger credit facility 23% 26% 30% 0% 22%Better online banking 18% 19% 15% 17% 21%Faster borrowing process 14% 22% 20% 17% 19%Better integration between the business' banking and its accounting/ finance software 18% 23% 5% 0% 19%
Better operational processing quality, efficiency and reliability 9% 12% 30% 17% 19%Better telephone banking 14% 12% 30% 33% 19%Better branch access 23% 19% 25% 17% 18%Other bank provides innovative, market leading solutions 9% 18% 15% 0% 18%Other bank provides a hassle-free switching process 32% 16% 10% 33% 17%More commitment to the business' long term growth 23% 16% 20% 33% 17%The business applied for a loan product and was not approved the amount needed 14% 19% 5% 33% 17%Access to a dedicated Relationship Manager 23% 12% 15% 0% 16%More knowledgeable business advisors 5% 15% 20% 17% 16%A greater international presence 9% 15% 10% 17% 16%Better pricing and fees 0% 14% 20% 50% 16%Improved product/ service offering 18% 16% 10% 17% 16%Better mobile banking 14% 14% 10% 0% 16%Other bank offered an incentive to move there 14% 12% 20% 17% 15%Flexibility to suit the business' banking needs 27% 14% 15% 33% 15%Better access to finance/ lending 5% 14% 25% 17% 14%The business was declined a credit product 9% 8% 0% 17% 13%The business already has a financial product with another institution and now looks to move all other holdings there
18% 14% 10% 0% 12%
Other bank is the business' major business loan provider 5% 11% 10% 0% 11%The business needs a more proactive partner that provides offers, promotions or access to suitable government schemes when available
18% 5% 10% 0% 11%
It's the major bank of the parent company/ headquarters 14% 15% 0% 0% 10%
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Business Operating Account: Satisfaction Drivers
Base: SME businesses which hold business operating account(s) (H1 2019: n=364)Note: Respondents who selected “This is not applicable to the business operating account” and “Don’t know what this feature is” were excluded from the analysis
1
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Correlation with overall satisfaction
Satisfaction with BOA services attributes and drivers of overall satisfactionBOA Holders
KEY
1 Fees and charges
2 Branch locations
3 Customer service
4 Size of credit facility
5 Online/ mobile banking capabilities
6 Access to foreign currencies
7 Speed of handling transactions
8 Service cut-off time for payment services
9 Integration with the business' technology plat
10 Knowledge of staff about regulations and busin
11 Its products and services meet the business' d
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