KUALA LUMPUR: The pandemic has aggravated financial hardship for retail banking consumers in Malaysia, with one in two experiencing a drop in income, according to a Fico survey.
The RFI Global's 2022 Post-Pandemic Consumer Banking Expectations report, prepared for Fico, also showed that many were motivated to search for better banking offers and that the inclination to switch lenders had increased year over year.
"While a considerable 23-30 per cent of Australian and New Zealand respondents experienced a negative impact, 50 per cent of Malaysians, 40 per cent of Singaporeans and 63 per cent of Indonesians saw a decline.
"Respondents in Thailand suffered the biggest blow, with 70 per cent saying their income had been reduced," Fico said.
Fico is a predictive analytics and data science service provider helping corporations improve operational decisions.
Fico said consumers were changing their banking behaviours, in response to the financial impact of the pandemic, with more than four in five of Malaysia's retail banking customers would either increase or maintain their savings (82 per cent).
Despite a dip in borrowing plans year over year, the level of borrowing for Asia Pacific retail banking customers still remains higher than in pre-pandemic times as consumers deal with the lasting effects of the disruption.
Fico Asia Pacific senior director of decision management solutions Aashish Sharma said the pandemic had clearly exacerbated financial hardship for customers regardless of income class.
"As borrowing and spending habits contract, customers will be on the lookout for avenues to grow their wealth and boost their savings.
"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," he said.
The survey was conducted in 2021 by an independent research company adhering to research industry standards.
A total of 1,003 adults in Malaysia were surveyed, along with 12,885 consumers in Australia, New Zealand, Singapore, Indonesia, India and Thailand.
