Banking public wants more digital, mobile banking

MANILA, Philippines - Eight out of 10 persons are embracing digital (electronic) banking in managing their personal financing activities. And they want more.

In a survey covering 5,500 individuals in the Asia Pacific region, 78 percent of those surveyed said speed, anonymity, and not having to fall in long line are some of the upsides of digital banking.

Conducted by Citibank NA, 61 percent of the respondents said that they want to get more from mobile banking in their daily banking activities.

The survey and interviews covered 11 countries – Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. It was carried out between Nov. 22 and Dec. 22, 2010.

Finance Asia, one of the leading finance and banking publications in the region, said that Citi is one global financial institution that is a major advocate for digital or electronic banking.

A bank spokesman told Finance Asia that digitalization at Citi helped the bank’s retail business grow by more than 50 percent in 2010.

“With a full-year net income of $2.1 billion, it was the largest business unit for Citi anywhere globally,” the regional publication said.

Citi chief executive officer Vikram Pandit said it was racing to be the world’s premier digital bank.

“We are upgrading our technologies and databases across the board to make the consumer experience as user-friendly as possible and our institutional offerings more efficient. We’re in the process of rolling out flagship branches with smart banking technology in major markets. We will link up all our systems so that customers can travel seamlessly from country to country without seeing any decrease in connectivity or service,” Pandit told the publication.

Citi first launched smart banking platform in Japan, and it was duplicated in China, Hong Kong, Korea, Taiwan, Thailand and Vietnam.

Its smart branches include touch-screen digital screens for customers to browse financial information, view product and service demos and use interactive financial calculators for personal finance budgeting.

There are also workbenches for customers to conduct their banking transactions online and acquire free stock quotes. Video conferencing facilities are available, enabling clients to get instant access to investment experts based at different locations. And as would be expected, there’s free Wi-Fi connectivity in these banks.

The bank is currently testing a pilot program to use chip technology in mobile phones so they can work as credit cards.

“Given the push, it makes sense to ask the market if that’s what they want. This poll suggests folks do want more high-tech offerings, but the key will be to stay ahead of the curve and differentiate from the competition,” the regional publication added.