A survey conducted in June analysed 1,000 responses detailing Singaporeans' biggest challenges with personal finance, changing financial habits and attitudes.
Since the COVID-19 outbreak, 70% of respondents have used online banking frequently, stating that they are “somewhat” or “very” comfortable using digital tools.
The Circuit Breaker period made the use of digital services inevitable, prompting Singaporeans to embrace more digital services. This includes 61% of older Singaporeans aged above 53. In fact, 69% of respondents in this age group say they are “somewhat” or “very” comfortable with online banking tools - the same percentage as those in the 35-44 age group (69%), and slightly more than those in the 44-54 age group (67%).
The survey also reports that 80% Singaporeans agree they will continue to bank online even after COVID-19 is over. Beyond online banking, this increased adoption has also had a spillover effect, with 70% of respondents saying they are also more likely to purchase groceries and other essentials online even after the pandemic dies down. With more than half of respondents (53%) aged 54 and above also agreeing with this.
Prashant Aggarwal, interim Country Manager, SingSaver said, “The pandemic has clearly provided Singaporeans with the impetus and time to gain familiarity and comfort with more online services. It’s interesting to see how this has been the catalyst many needed for adoption, given that the majority intend to keep using these digital tools beyond the pandemic.”
He added, “The key to maintaining this adoption and ensuring greater financial health lies in ongoing education. SingSaver aims to bridge this gap by continuing to enable financial literacy with tools and insights that help Singaporeans make informed financial decisions.”
When asked about financial planning behaviours due to COVID-19, 33% of the respondents mentioned that they were committed to building and expanding their emergency fund. More Millennials aged 25 to 34 (36%) agreed to this as compared to the other age groups.
33% of the respondents cited creating additional streams of income as a key action they took due to COVID-19. In particular, there is a significant proportion of respondents aged 35 to 44 (sandwich generation) who are committed to both building emergency funds (35%) and creating additional income streams (37%).
A large 87% of respondents agree the pandemic has reoriented them to adopt a lower consumption and higher savings habit, while 89% want to be more prudent and intentional about their personal finance due to the pandemic.
“Singaporeans are clearly looking for different options to save money and improve their financial choices, which we have seen at SingSaver through the increased use of our services and the doubling of our online traffic since the onset of the COVID-19 pandemic. The demand for digital has never been greater and there’s no better time for businesses to look inwards and accelerate their digital journeys.” said Aggarwal.
Develop smarter money habits with these tips from SingSaver:
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