What’s the Monetary Properly-Being Spectrum in Hong Kong?
Hong Kongers had many monetary issues earlier than the COVID-19 pandemic. Many had been apprehensive about their monetary future. Shoppers’ funds have been additional affected by the pandemic, many feeling much less assured and in a position to handle their funds sooner or later.
Monetary well-being doesn’t suggest having a specific amount of financial savings or investments. It’s about individuals feeling assured that they’ll handle their funds day after day and plan for the longer term. Monetary safety may be outlined as whether or not an individual is ready to pay their payments on schedule or lower your expenses for an surprising medical expense. Others really feel monetary safety is having sufficient cash to maintain their way of life till the tip.
Monetary providers corporations are focusing extra on clients’ financial well being. They wish to perceive clients’ monetary wants, develop services that can assist them attain their monetary objectives and have constructive results on their monetary well being. Forrester’s Financial Wellbeing Segment permits corporations to raised assess their clients’ monetary resilience and attitudes in the direction of their monetary state of affairs.
Segmentation of Forrester’s Monetary Properly Being
4 distinct monetary well-being segments are present in Hong Kong
We surveyed 1,105 Hong Kong adults on-line in 2021 to assist monetary service corporations assess the place they stand on the monetary effectively being spectrum.
- 31% of Hong Kong’s customers are Safety Seekers.Though they do not dwell from paycheck to paycheck, safety seekers are involved about their monetary future. Their high monetary challenges embrace understanding how and the place to take a position, saving cash, and planning for retirement. 38% really feel safe about their funds whereas 29% really feel harassed.
- 24% of Hong Kong’s customers are Cushioned Savers.The cushioned saver does not should dwell paycheck-to-paycheck and isn’t apprehensive about their monetary future. This group isn’t more likely to face monetary hardships. They nonetheless face monetary difficulties resembling how one can make investments and plan for retirement. The vast majority of Cushioned Savers take into account their monetary state of affairs steady (69%) and are optimistic (37%).
- 23% of Hong Kong’s customers are Carefree SpendersThe Carefree Spender lives paycheck to paycheck and does not fear about their funds. They face three main monetary hurdles: understanding how and when to take a position, saving cash, and with the ability to afford a major life-event. Nevertheless, greater than a 3rd of carefree buyers say that their monetary state of affairs is steady.
- 22% of Hong Kong’s customers are Stretched SpendersThe Stretched Spenders are those that dwell from paycheck to paycheck and have anxiousness about their monetary future. They face the most important monetary challenges in managing their cash, investing, and paying for each day requirements. 73% of respondents really feel overwhelmed by debt and 78% report that it negatively impacts their capacity to pay their payments. Nevertheless, most individuals really feel safe and comfy when they’re requested about their monetary state of affairs.
Within the present local weather of uncertainty, it’s straightforward to know why Safety Seekers are greater than others. Hong Kongers are being extra cautious in saving and maintaining a tally of their funds, and lots of have began to avoid wasting for emergency funds. COVID-19 has ruined even the best-laid retirement plans. Even for many who do not dwell hand to mouth, and have constructed up financial savings through the years, it may be tough to plan for the longer term or know how one can make investments.
Corporations can use these 4 segments to map their clients and achieve perception into monetary habits, habits, and curiosity in particular monetary administration instruments, recommendation, or providers. Monetary providers corporations can higher tailor the monetary expertise of their purchasers by understanding their buyer segments.
Our upcomingAPAC Financial Services Webcast Series 2021This session will present you how one can create a extra related segmentation system that improves the monetary well-being to your clients. I hope to see you at my session on the twenty eighth of July! Register right herehttps://go.forrester.com/apac/financial services/
We hope to see you (nearly!)
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