Malaysia, Nov 13: Three quarters or 75 percent of Asia-Pacific (APAC) banking customers say they are likely to use digital banking more now than pre-pandemic, according to a new report from SaaS cloud banking platform Mambu.
The financial tribes you need to know report reveals that nearly two thirds (65 percent) of APAC consumers made greater use of digital banking services over the last 18 months, and globally, two in every five people started using digital banking for the first time ever because of the pandemic.
The report, which is the latest in Mambu’s ‘Disruption Diaries’ series, surveyed 4,500 consumers globally and identified five emerging financial ‘tribes’ that banks need to know about in a post-pandemic world.
“Each tribe tells us something significant about the way consumer behaviour is adapting and what banks must do to stay ahead of the curve. Traditional audience segmentation in financial services is outdated. The one-size-fits-all model, in which customers are divided based on how much they earn, or simple demographics, is redundant in a world of open finance and rich data,” Mambu CEO Eugene Danilkis said.
“If banks want to thrive in the future, they must think about how to affiliate themselves with the dynamically changing groups within society and appeal to them with products and experiences that meet their shared values and financial needs.
“Globally, we have over 50 million end users on our Mambu platform which demonstrates the growing demand for new and digitally-enabled financial products.”
The same sentiment had been echoed by Mambu’s General Manager of Malaysia Kevin Pu who said that Malaysian banks and financial services should be aware that the needs and wants of their customers have changed dramatically in the past year.
“There’s now a much greater focus among APAC customers for ethical banking that has a social impact, with 74 percent of APAC respondents more likely to select a bank that puts purpose above profit.
“There is also a very strong push towards digital financial technologies like cryptocurrency and other digital assets, with 38 percent of APAC consumers owning some kind of cryptocurrency, well above the global average of 31 percent.”
The report also identifies five consumer financial tribes post-pandemic and they are as followed:
Techcelerators
Recent converts to the world of digital banking who have adopted digital services amid physical branch closures. This group is the largest tribe globally, accounting for a third (33 percent) of total respondents, and 37 percent of APAC respondents. This group is predominantly aged over 35 years.
Ethical bankers
Young, purpose-driven savers that want to make a positive impact in the world. This tribe is second largest globally, making up 31 percent of respondents. Nearly half (49 percent) of this group globally are aged between 18 and 34.
Convenience cravers
One-stop shoppers who want all-in-one services at their fingertips, at no extra cost. This group makes up 23 percent of global respondents and are predominantly middle-aged or older individuals — with more than half (55 percent) aged over 35. This group is least likely to pay a premium for services that save time or offer flexibility, expecting a best-in-class customer experience as standard.
Covidpreneurs
Entrepreneurs who have set up their own business during the pandemic, in need of easy-to-use and reliable business banking services. Covidpreneurs are the youngest tribe globally, with almost two thirds (64 percent) aged under 35 years and a quarter (25 percent) under 25 years.
Neo asset hoarders
New asset owners who want to use financial services to buy, trade and hold assets. This group is the smallest, but rapidly growing tribe globally. Two thirds (66 per cent) are male and over half are under the age of 35. This group is most likely to own neo assets, including cryptocurrency and NFTs and most likely to agree the ability to buy, sell or manage neo assets is important in a bank. APAC consumers were most likely of any region surveyed to have purchased neo assets like cryptocurrency during the pandemic (29 percent).
Mean some of the main points of survey results includes:
- Seventy one percent of APAC consumers prefer to invest rather than spend their money
- Seventy four per cent stick to a budget
- Financial security (85 per cent), reaching financial goals (87 per cent) and return on investment (86 per cent) are most important when making an investment
- Fifty percent of APAC respondents own property
- Thirty eight per cent own cryptocurrency, and 29 per cent purchased crypto during the pandemic
- Money transfers (91 per cent), account balance checks (90 per cent) and bill payment services (87 per cent) are the most important digital or online banking services cited
- Seventy four per cent of APAC respondents are likely to choose a bank that puts purpose over profit
- Sixty five per cent used online or digital banking more frequently during the pandemic
- Seventy five are likely to continue to use online or digital banking more frequently post-pandemic.
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