The Global Economic Crisis: The Impact On Consumer Attitudes Towards Financial Services in Singapore and Australia

Published by: Datamonitor

Published: Jan. 29, 2010 - 39 Pages

Table of Contents

Overview

Catalyst

Summary

INTRODUCTION

Understanding how recessionary mindsets influence attitudes is vital

The recessionary mindset of consumers in Singapore and Australia has intensified with consumers' widespread belief that they are living in a recession

THE FUTURE DECODED

TREND: Consumer confidence has fallen among consumers in Australia and Singapore

Perceptions of the worsening of economic conditions do not wholly tally with the belief that one's country is in a recession

Despite a worse economic situation, Singaporeans are surprisingly more positive about the extent to which economic conditions have worsened

Singaporeans feel more looked after by their banks than Australians

Singaporeans are more sensitive to publicity than Australians

Negativity surrounding the economy at large was greater than that shown by consumers towards their personal situation

Consumers in Australia and Singapore showed cautious optimism for the six months ahead

Australian and Singaporean expectations are varied

ACTION: Providers, particularly in Australia, must communicate effectively with customers in order to provide reassurance and rebuild trust

Banks lack certainty about how to use social media effectively

Social media cannot be ignored by banks

The use of social media in customer service strategies helps consumers engage with their bank

INSIGHT: Low consumer confidence in Australia and Singapore has translated into heightened concern surrounding the value of savings

Singaporeans are far more concerned about their finances in all areas than Australians

Australians are relatively unconcerned about the value of long-term investments

Australian and Singaporean consumers are aligned with the global average in that they are less concerned about debt than before the downturn

INSIGHT: While they are marginally more motivated than the average consumer, uncertainty is still leading people in Australia and Singapore to embrace the status quo

Increased concern over the value of savings has led to some limited motivation to save more over the coming six months

Although consumers in Australia and Singapore are cautious about actually taking action, they now show signs of greater engagement with their finances

Singaporeans' intentions are particularly encouraging

ACTION: Provide Australian and Singaporean consumers with facilitating tools to coax them into action, such as innovative savings products

TREND: Consumers in Australia and Singapore hold significant cross-selling potential

Primary bank loyalty is current comparatively low and some key opportunities are being missed

Savings products represent the biggest cross-selling opportunity for primary banks in Australia and Singapore

Singaporean banks are apparently not offering competitive mortgage deals to their existing customers

Banks are missing opportunities to cross-sell certain types of insurance to their customers, particularly life insurance

INSIGHT: Trust and financial intelligence are affecting cross-selling success in Australia

Trust is vital, because those with greater trust levels are less likely to switch

Financial intelligence is synonymous with high primary bank product holdings

Singaporeans are both more trusting and more financially intelligent than Australians

INSIGHT: Financial stability is far more important than cost for consumers in Australia and Singapore

Australians are relatively unreceptive to professional advice

Singaporeans are significantly more concerned about green and ethical credentials

ACTION: Focus marketing efforts on product value and financial security

Financial stability is of the utmost importance to Australians and Singaporeans

Providers should target Singaporeans by offering multiple channels for financial advice

Ethical credentials should be a key element when targeting Singaporean consumers

APPENDIX

Additional data

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Extent to which Australian, Singaporean and global consumers agree that their country is in recession

Table 2: Australian, Singaporean and global views on the changes of economic conditions over the previous 12 months

Table 3: Indicators of trust in banks among Australian, Singaporean and global consumers

Table 4: Australian, Singaporean and global comparison of the previous 12 months and expectations for the coming six months in various aspects

Table 5: Levels of concern about different product areas among Australian, Singaporean and global consumers

Table 6: Likelihood of actions being taken over the coming six months among Australian, Singaporean and global consumers

Table 7: Indicators of financial engagement among Australian, Singaporean and global consumers

Table 8: Likelihood to now shop around more among Australian, Singaporean and global consumers

Table 9: Primary bank product holding among Australian, Singaporean and global consumers

Table 10: Primary bank multiple product holding among Australian, Singaporean and global consumers

List of Figures

Figure 1: Datamonitor's Recession and Recovery portal allows industry players to continually identify emerging opportunities and track what is happening in the UK economy as it occurs

Figure 2: More than half of Australian and over three quarters of Singaporean consumers believe that their country is in a recession, which is indicative of a deep recessionary mindset

Figure 3: Australian and Singaporean consumers' heightened economic concerns are in line with the global average

Figure 4: Singaporean consumers feel more looked after by their banks

Figure 5: Australian and Singaporean consumers are optimistic about the future

Figure 6: Use of social media such as Twitter represents a key marketing opportunity

Figure 7: Singaporeans are far more concerned about their finances than Australians in all areas

Figure 8: Australian and Singaporean consumers are embracing the status quo

Figure 9: Singaporeans' intentions to engage more with their finances are particularly encouraging

Figure 10: SmartyPig has created an innovative savings platform

Figure 11: Consumers in Australia and Singapore are less likely than average to be shopping around more since the downturn

Figure 12: Savings products represent the biggest cross-selling opportunity for primary banks in Australia and Singapore

Figure 13: Singaporean providers have achieved higher multiple product holding levels

Figure 14: Consumers with greater trust are less likely to switch

Figure 15: Australian and Singaporeans consumers with more primary bank product holdings are also financially intelligent

Figure 16: Singaporeans are more financially intelligent than Australians

Figure 17: Singaporeans are more proactive than Australians about putting their financial knowledge into practice

Figure 18: Financial stability is far more important than cost for consumers in Australia and Singapore

Figure 19: Virgin's Climate Change ISA is a prime example of ethical and green credentials

Abstract

• Using data from our global FSCI survey, this report provides a detailed analysis of Australian and Singaporean consumers' 'recessionary mindset'
• The report provides insight into how their 'recessionary mindset' translates into attitudes towards future prospects and cross-sell potential
• The report provides concrete actions for providers to follow in order to boost acquisition and retention levels

• Gain a detailed understanding of changing consumer attitudes amid the global downturn in order to build appropriate recessionary strategies
• Assist consumer targeting efforts by accessing data from Datamonitor's Global FS Consumer Insight survey

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