Millennials and Gen Zers expect more of financial institutions, from getting their first paycheck and applying for a credit card, to investments and retirement planning.
The needs of the two groups – aged between 21 and 34 this year – differ significantly from previous generations.
Young adults are digital natives. They tend to gravitate towards online banking rather than turn up at physical branches.
So, too, their Asean counterparts. The UOB Asean Consumer Sentiment study, conducted in July last year, found that close to four in five (79 per cent) Asean consumers across all ages have switched to banking apps in 2021.
Among millennials and Gen Zers, the increase in usage of banking apps was at 79 per cent and 80 per cent respectively.
Around 3,500 respondents – aged between 18 and 65 – from five Asean countries were polled, including 1,000 from Singapore and more than 600 each from Indonesia, Malaysia, Thailand and Vietnam.
Asean consumers are also performing different types of transactions digitally. These activities include opening a new bank account (64 per cent), applying for financial products (74 per cent), registering for bank loans (61 per cent), and even checking the status of their rewards programme (86 per cent).
So what makes millennials and Gen Zers stand out? In Asean, these young adults are part of a growing population of underserved and increasingly affluent consumers, says Mr Kevin Lam, UOB head of TMRW and Group Digital Banking.
As they graduate from one stage of life to the next, their financial responsibilities grow. This will lead to more touchpoints with banks.
The e-Conomy SEA report published by Google, Temasek and Bain & Company in October 2019 noted that around 198 million in South-east Asia are “unbanked”, or do not have a bank account. Meanwhile, another 98 million are “underserved”, which means that they have a bank account, but lack access to credit, investments and insurance instruments.
Mr Lam explains: “These are the people who could have just started working and are becoming financially stable. They have needs such as getting a credit card, or might want to take up a loan for their new home purchase, and it’s a great time for them to start investing.”
source https://netdace.com/latest-news/bank-comes-up-with-fun-interactive-easy-ways-to-engage-underserved-asean-young-adults/