Eighty-three per cent of Gen Z Singapore consumers aware of generative AI and its potential in banking: Visa Study

08/13/2024

 

Gen Z consumers (aged 18-23 years) in Singapore are increasingly aware of the potential of generative artificial intelligence (AI) and are interested in using this technology that can transform their banking and shopping experiences, according to the latest Visa Consumer Payment Attitudes Study. The study found that 84 per cent of Gen Z consumers in Singapore are aware of generative AI and its potential applications, almost 10 per cent higher than all Singaporeans surveyed (76%) who are aware of this technology. Furthermore, over eight in 10 Gen Z consumers are aware of the benefits and potential of generative AI in banking, and this is also higher than the total surveyed population in Singapore (69%).

Singapore consumers across all age groups have indicated strong enthusiasm for this trend, with close to 60 per cent being interested in trying generative AI for banking services. Leveraging AI for fraud detection (68%) and answering enquiries on banking products and solutions (61%) were cited as desired applications by consumers from a banking perspective.

In addition, more than a third of Singapore consumers who were interested in using Generative AI for banking believe that top three reasons for using Generative AI include reducing risk of fraudulent transactions, cutting down the processing time for banking transactions and having their banking enquiries addressed quickly and efficiently.

"There is immense potential in generative AI, where it is predicted that Gen AI brings US$320B worth of value to the banking industry. And that is also why we introduced a US$100 million generative AI ventures initiative globally to support the next generation of companies focused on using this technology to impact the future of commerce and payments,” said Adeline Kim, Visa Country Manager for Singapore & Brunei.

“We also believe there are interesting use cases in banking that could emerge which includes using Gen AI to create more efficient and automated customer service and drive hyper-personalised content and product customisation to serve customers. Combating fraud leveraging Gen AI is also another great example.  We introduced the Visa Account Attack Intelligence score this year, which uses Gen AI components to identify and score enumeration attacks. For a long time, AI has been used by financial institutions to create some of these services for consumers, but Generative AI will further refine and make these customisations more precise due to enhanced machine learning capabilities,” added Adeline.

There is also high interest by Singapore consumers to use Generative AI for money management. Close to seven in 10 consumers were interested most in using this technology to plan for retirement, pay their bills on time and track and analyse their spending.

The retail sector is also seeing a transformative impact that generative AI will provide and consumers are already adopting AI-powered shopping tools to find products tailored to their needs. Some 25 per cent of consumers surveyed in Singapore have already used generative AI for online shopping; and Gen Z are leading the way at 43 per cent.

Findings also showed that half of Singapore consumers are interested in using an AI personal shopper, especially for personalised recommendations (49%) and finding merchants that are offering better prices and promotions (45%). Gen Z segment and the affluent segments are most interested in using this service at 62 per cent and 54 per cent respectively. Categories that they are most interested to use this personal shopper service include home appliances, personal electronics and fashion.

“As generative AI continues to reshape industries, Visa remains dedicated to integrating these technologies into our ecosystem, fortifying our payment networks, unlocking new opportunities, and empowering businesses and consumers to thrive in the digital age,” said Adeline.

 

About Visa

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at www.visa.com.sg