Fintech wins 4 in 5 firms but only 30% make full bank switch

Nearly a third flag disruption risk; 27% say their current bank is good enough.

About 36% of Singapore businesses said they are very confident a fintech provider could fully replace a traditional bank for their business banking needs, Aspire’s survey showed.

Almost half, or 49%, are somewhat confident, and another 14% are neutral, whilst a small minority reported low confidence.

The survey found that four in five Singapore businesses use fintech for some financial needs, with 30% fully switched and 50% using fintech alongside traditional banks. Another 17% are considering a switch.

Some 61% of businesses use fintech providers for business accounts and payments, followed by credit and financing at 53%, accounting integrations at 52%, and payroll at 51%.

Amongst businesses that have not fully switched, 27% said there was no strong reason to switch because their current provider was good enough, the survey found.

Easier onboarding and better customer support were each cited by 33% of businesses as reasons to switch providers, whilst 30% pointed to operational disruption and data security concerns.

Businesses also showed a preference for a mix of technology and human support. Nearly 80% want at least an equal level of human involvement, with 10% preferring human support only, 30% mostly human support with some automation, and 39% an equal mix.

AI integration and features were cited by 32% as a reason to switch providers, on par with faster transactions and ahead of lower fees at 30% and better foreign exchange rates at 28%.

Aspire said that businesses still value human support and want providers to make it easier to consolidate more financial services on a single platform amidst growing fintech adoption.