The pandemic has affected economies around the world, but people are reacting differently when it comes to their financial habits.
A more confident outlook and a greater appetite for diversifying income streams
Around the world, people prefer to work harder to get ahead in their career rather than working fewer hours for less pay (79 per cent). This is particularly the case in Kenya (93 per cent), Mainland China (90 per cent), and India (88 per cent). People in fast-growing markets are the most likely to consider diversifying their incomes to increase their earnings. For example, Kenya (85 per cent), Indonesia (80 per cent) and Pakistan (66 per cent) see the highest levels of interest in starting a new business.
People across markets are mostly confident in their ability to thrive based on their digital skills
Rapid acceleration from physical to digital
The majority of people think that their market will go cashless – but this varies – with 87 per cent in India and 39 per cent in Pakistan agreeing that their market will go cashless.
Expectations of when countries will go cashless also varies by market. Most respondents in India and Indonesia think their markets will go cashless by 2025, whereas the majority of US respondents don't expect a cashless society until 2100.
A more mindful approach to spending
75 per cent of people globally say COVID-19 has made them more careful with spending – with Kenya (93 per cent), India (90 per cent) and the UAE (89 per cent) leading the way.
Fast-growing markets, including Indonesia, Kenya and India are the most likely to buy from small and local businesses and choosing sustainably sourced products, as a result of COVID-19.
HONG KONG: careful spenders
In Hong Kong, people appear to have responded to the economic implications of COVID-19 with a focus on their spending. By being more careful and tracking their spending, they are more able to keep their finances in check. Hong Kong has seen the largest decreases in spending on groceries and experiences during the pandemic, and over 20 per cent of our Hong Kong respondents expect to spend less on groceries and experiences in the future.
Hong Kong respondents have seen the largest decreases in spending on groceries (22 per cent) and experiences compared to before the pandemic (49 per cent).
INDIA: facing a post-COVID-19 future with confidence
Respondents in India are the most optimistic and assured of all the people we surveyed. They have the highest level of confidence in their digital skills to thrive post-COVID and have grown more confident in their ability to achieve their financial goals since the onset of the pandemic. India also has the highest proportion of people thinking their economy will go cashless.
India is the top market for the following findings:
INDONESIA: rapidly digitising and diversifying income streams
A large majority of Indonesians have been driven to work harder and diversify their sources of income as a result of the pandemic: they are the second most likely across all markets to consider setting up a additional income stream, re-skill or start their own business, and joint third most likely to want to make more use of technology in the way they work.
KENYA: responding to COVID’s financial challenges with care
Respondents in Kenya are more likely than people in any other market to consider diversifying their sources of income, such as starting a second income stream, reskilling or starting their own business. In our global survey, Kenyan consumers are the most likely to be careful with their spending (93 per cent), and the most motivated to improve their money-management skills. They were also the top market in the following findings:
SINGAPORE: staying ahead of the curve
Singapore was one of the most tech-savvy markets we surveyed, with two-thirds of Singaporeans (67 per cent) already using a mobile banking app before COVID-19 hit, but this trend has been accelerated by the pandemic. Singaporeans are also much more positive about e-commerce and expect to increase their online shopping in the future. A majority think Singapore will go cashless and their average prediction is by 2031.
UAE: transforming the world of work
Of all the markets we surveyed about the impact of the pandemic, respondents from the UAE have seen their way of working changed the most. People in the UAE have significant appetite to integrate technology more in the way they work. A majority are considering diversifying their income sources post-COVID-19, and many are interested in doing voluntary work for charities.