Thais feel financial effects of pandemic | WARC | The Feed
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Thais feel financial effects of pandemic
Seven in ten retail banking consumers in Thailand have experienced a decline in income because of the pandemic, one of the highest proportions in the Asia Pacific region.
In Indonesia (63%) and Malaysia (50%) the effects have also been severe, less so in India and Singapore (both 40%) while Australia and New Zealand (23-30%) fared relatively well by comparison, according to RFI Global's 2022 Post-Pandemic Consumer Banking Expectations Report, prepared for software analytics firm FICO.
Why it matters
The impact of the pandemic on people’s finances is forcing them to reappraise their financial set up, including who they bank with. The study, reported in The Nation, indicates that the proportion of people across the region planning to switch banks will double to 20% in 2022 compared to 2021.
That’s both an opportunity and a challenge for marketers, who will have to find a balance between physical access via branches and ATMs (which 44% of Thais say is important in choosing a banking provider) and digital services which many now favour for their ease of use.
- Almost half (47%) of retail banking customers in Thailand have deferred loan repayments (compared to an average of 27% across the wider region).
- Disruption to income has left a third (37%) of affluent Thais intending to reduce spending, just as half of Thailand's retail banking customers plan to do.
- One in five affluent Thai banking customers will consider switching banks in search of the most competitive banking deals.
- Top reasons cited for changing banks include: change in personal circumstances (28%), wish to consolidate all accounts with another institution (22%), desire for access to better investment and wealth management products and services (20%) and incentive from another institution (20%).
“Banks must be able to proactively identify customers' needs, and pivot their approach to alleviate financial anxieties while ensuring their products suit customers' affordability and funding requirements” – Aashish Sharma, Senior Director of Decision Management Solutions for FICO in the Asia Pacific.
Sourced from The Nation
Check out the new WARC hub, Economic slowdown and inflation: How to respond, which features the latest evidence, best practice advice and expert guidance as marketers plan for both an economic slowdown and rising prices.
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