Financial institutions boost engagement with digital transformation

Banks focus on trust, transparency, and security in digital self-service.

Despite the rapid rise in digital touchpoints, trust remains a central concern for financial institutions. According to Cindy Griffin, Financial Services Vertical Marketing Specialist at Smart Communications, 71% of customers globally prefer digital self-service, a number that jumps to 78% in Singapore.

While the demand for digital self-service is clear, trust issues persist. Griffin noted that the 2025 Customer Experience Benchmark Report revealed that trust in financial services has dropped from 68% in 2024 to 63% in 2025, with Singapore seeing an even lower rate at 62%. "Banks need to focus on delivering clear, consistent, and secure communications at every touchpoint," she emphasised.

One of the main drivers of trust is how financial institutions handle customer data. As digital forms and data collection continue to grow in importance, financial institutions must ensure their forms are easy to complete, intuitive, and mobile-friendly. This is particularly critical in Singapore, where 84% of customers say it is crucial to offer digital forms rather than manual processes.

However, there is a significant challenge. "More than half of customers will abandon a digital form if it's too hard to complete," Griffin pointed out, with Singaporeans being even more likely to abandon forms. To address this, banks must make sure their digital experience is not only convenient but also secure and compliant, using guided digital forms, identity verification, and audit trails to ensure the highest standards for privacy and regulatory protection.

Transparency also plays a key role in maintaining trust, especially in light of growing concerns over fraud. Griffin explained that 64% of customers are more likely to remain loyal if they experience clear and timely communication, particularly during sensitive moments like fraud alerts. This openness not only protects customers but strengthens a brand’s reputation as a responsible, customer-first organisation.

Lastly, as AI continues to play a larger role in customer communication, Griffin cautioned that trust in AI must be built deliberately. "Only 21% of customers believe AI improves communication," she said. To gain trust, financial institutions must remain transparent and ensure human oversight of AI-generated content.