1 in 5 affluent Singaporeans defer loan repayments, mull switching banks: survey
Over 40% of mass affluent bank customers saw their incomes decrease.
Three years on and the pandemic continues to negatively impact Singaporean retail banking customers’ incomes, even the mass affluent segment, of which close to 20% deferred loan repayments, according to a study by data analytics company FICO.
Surveying over 2,270 Singaporean adults, FICO found that for those belonging to the mass affluent segment–or those with at least S$200,000 total investable asset holdings–1 in 5 are considering switching banks in search of the most competitive banking deals.
“In Singapore, 3% of retail banking customers and 4% of mass affluent customers switched in 2021. That is set to at least double this year, with 6% of retail customers and 17% of the mass affluent saying they are very likely to switch,” FICO said.
Amongst mass affluent banking customers in Singapore, 43% experienced a decrease in income due to the pandemic, or 3 percentage points higher than retail banking customers.
Given these circumstances, 2 out of 5 affluent Singaporeans now intend to reduce their spending. Another 15% plan to increase their borrowing, higher than the 6% of retail banking customers who intend to do the same.
A whopping 86% of the mass affluent are opting to maintain or boost their investment levels with banks, versus 78% of Singapore’s overall retail banking market, FICO’s study also found.