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

The Global Economic Crisis: The Impact On Consumer Attitudes Towards Financial Services in Singapore and Australia published by Datamonitor in January, 2010. This report consists of 39 pages and the price starts from US $ 4495.

Introduction

Abstract

Introduction

Consumer confidence in Australia and Singapore has been damaged by the global economic downturn, but FS must acknowledge that, not only do the attitudes and behaviors of consumers in these countries vary considerably from one another, but also do not wholly tally with what might be expected according to the reality of the economic situations.

Scope of this research

• 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

Research and analysis highlights

Australian and Singaporean consumer have revealed themselves to be far less likely than average to now more likely to shop around for FS than they were before the downturn, presenting an opportunity to cross-sell to existing customers and highlighting a need for primary providers to reassure their consumers that their money is safe where it is.

Datamonitor has found considerable disparity between views on the economy at large and attitudes towards more personal aspects of consumers' lives in both Australia and Singapore, while considering economic conditions to have worsened over the last 12 months, consumers felt that their general lives had actually remained the same.

Key reasons to purchase this research

• 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

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
  • 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

• ACTION: Providers, particularly in Australia, must communicate effectively with customers in order to provide reassurance and rebuild trust
  • (Untitled sub-section)
  • 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
  • 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

• 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

• INSIGHT: Trust and financial intelligence are affecting cross-selling success in Australia
  • (Untitled sub-section)
  • Financial intelligence is synonymous with high primary bank product holdings

• INSIGHT: Financial stability is far more important than cost for consumers in Australia and Singapore
  • (Untitled sub-section)

• 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

TABLES

• Table: Extent to which Australian, Singaporean and global consumers agree that their country is in recession
• Table: Australian, Singaporean and global views on the changes of economic conditions over the previous 12 months
• Table: Indicators of trust in banks among Australian, Singaporean and global consumers
• Table: Australian, Singaporean and global comparison of the previous 12 months and expectations for the coming six months in various aspects
• Table: Levels of concern about different product areas among Australian, Singaporean and global consumers
• Table: Likelihood of actions being taken over the coming six months among Australian, Singaporean and global consumers
• Table: Indicators of financial engagement among Australian, Singaporean and global consumers
• Table: Likelihood to now shop around more among Australian, Singaporean and global consumers
• Table: Primary bank product holding among Australian, Singaporean and global consumers
• Table: Primary bank multiple product holding among Australian, Singaporean and global consumers

FIGURES

• Figure: 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: 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: Australian and Singaporean consumers' heightened economic concerns are in line with the global average
• Figure: Singaporean consumers feel more looked after by their banks
• Figure: Australian and Singaporean consumers are optimistic about the future
• Figure: Use of social media such as Twitter represents a key marketing opportunity
• Figure: Singaporeans are far more concerned about their finances than Australians in all areas
• Figure: Australian and Singaporean consumers are embracing the status quo
• Figure: Singaporeans' intentions to engage more with their finances are particularly encouraging
• Figure: SmartyPig has created an innovative savings platform
• Figure: Consumers in Australia and Singapore are less likely than average to be shopping around more since the downturn
• Figure: Savings products represent the biggest cross-selling opportunity for primary banks in Australia and Singapore
• Figure: Singaporean providers have achieved higher multiple product holding levels
• Figure: Consumers with greater trust are less likely to switch
• Figure: Australian and Singaporeans consumers with more primary bank product holdings are also financially intelligent
• Figure: Singaporeans are more financially intelligent than Australians
• Figure: Singaporeans are more proactive than Australians about putting their financial knowledge into practice
• Figure: Financial stability is far more important than cost for consumers in Australia and Singapore
• Figure: Virgin' s Climate Change ISA is a prime example of ethical and green credentials

Related Reports