The new financial tribes

08-Dec-2021 Intellasia | BangkokPost | 5:02 AM Print This Post

Some 93 percent of Thai banking customers say the availability of online or digital services through their bank is important, according to a new report by Mambu, a digital financial services platform developer.

While 61 percent of consumers globally have made greater use of digital banking services over the last 18 months, in Thailand the figure is 73%, said the report, titled “The Financial Tribes You Need to Know”. More than half of the Thai respondents (53%) started using digital banking services for the very first time during the pandemic.

The report surveyed 4,500 consumers globally (including 502 Thai consumers) and identified five emerging financial “tribes” that banks need to know about.

“Each tribe tells us something significant about the way consumer behaviour is adapting and what banks must do to stay ahead of the curve,” said Eugene Danilkis, CEO of Berlin-based Mambu, which has some 200 bank customers in over 65 countries.

“Traditional audience segmentation in financial services is outdated.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.”

The key consumer groups identified in the survey include:

Techcelerators: Recent converts to digital banking amid physical branch closures, this group is the largest tribe globally, accounting for 33 percent of total respondents and 41 percent of Thai respondents. Most are aged over 35 years.

Ethical bankers: Young, purpose-driven savers who want to make a positive impact in the world. This tribe makes 31 percent of global respondents, but only 19 percent in Thailand. This is despite 79 percent of Thai respondents stating that social impact is important to them when it comes to financial services the highest of any nation. Nearly half (49%) 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 16 percent of Thai respondents (23 percent globally) and are predominantly middle-aged or older individuals. They are 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, and need easy-to-use and reliable business banking services. This is the youngest tribe globally, with almost two thirds (64%) aged under 35 and 25 percent under 25 years. Eighty-three percent of Thai respondents said the availability of SME banking services was important, higher than any other country surveyed.

Neo asset hoarders: This group wants to use financial services to buy, trade and hold assets. It is the smallest, but a rapidly growing tribe globally. Two thirds (66%) are male and over half are under 35. Thai respondents were the most likely of any country surveyed to own cryptocurrency, at 53%.

Overall, Thai consumers are enthusiastic digital adopters, as the following highlights indicate:

73 percent said they use online or digital banking services more now than they did prior to the pandemic;

78 percent believe the ability to buy, sell and manage neo assets like cryptocurrency and NFTs through their bank is important;

53 percent own some kind of cryptocurrency, 42 percent said they had purchased neo assets (crypto/NFTs) during the last 18 months, and 16 percent use cryptocurrency to pay for goods and services the highest percentage of any country surveyed;

47 percent use digital wallets to pay for goods and services.

72 percent said they are more likely to start a business now than they were pre-pandemic again, the highest of any country surveyed.

“We know Thailand is a frontrunner in terms of digital adoption in financial services, and these survey results validate that belief,” said Kiattipong Hanthaiphondee, general manager of Mambu in Thailand.

“Thai respondents were the most likely to hold baht central bank digital currency (CBDC), which the Bank of Thailand is scheduled to release in mid-2022, and cryptocurrency, as well as the most likely to use it to pay for goods and services out of all of the countries we surveyed.”

https://www.bangkokpost.com/business/2227899/the-new-financial-tribes

 

Category: Thailand

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