Experian: consumer in APAC struggle with bill payments
Experian research reports that consumers in the APAC region continue to struggle with bill payments during COVID-19
In Experian’s 2020 Global Insights Report, the consumer credit reporting company, highlighted the impact COVID-19 has had on consumer spending habits and the potential implications for financial institutions.
Key findings from the report:
- A 23% reduction in discretionary spending since the beginning of the pandemic, with 20% of consumers report that their reduction in discretionary spending is due to job loss and/or expecting a shift in their financial circumstances
- 29% of consumers are spending less due to lifestyle changes as a result of social distancing measures
- A 50% increase in the number of APAC consumers facing challenges when it comes to paying personal loans and mortgages
- 89% of consumers opted for financial assistance and/or payment deferment support since the outbreak of COVID-19
- 41% reported that they would give an organisation more business if they believed they were treated fairly during the pandemic
The report Surveyed 3,000 consumers and 900 executives from the retail banks, e-commerce, consumer technology and telecommunications sector, and is the second of three studies exploring the major shifts in consumer behaviours and business strategies prior to, and post COVID-19.
“This crisis has created huge challenges for everyone. Consumers are doing the right thing to protect their financial health by re-prioritising their spending. For those facing challenges in paying their bills, the loan deferrals available in some markets enables them to discuss a short-term payment suspension, or to defer or reduce payments, and this should not impact their credit history if they agree on the terms with their lender,” commented Ben Elliott, CEO Asia Pacific, at Experian.
“As customer profiles change rapidly, lenders face the prospect of steep provisioning. We have been helping banks and lenders to understand that during a downturn, it is important for them to utilise a decisioning system to identify financially stressed customers with early-warning indicators, respond quickly to change, predict future customer behaviour, and deliver the right treatment at the right time. We’ve found that this helps with building greater trust and ensuring loyalty in the long run, and also improves their customer retention,” added Elliott.
To read the full report, click here!
For more information on business topics in Asia Pacific, Australia and New Zealand, please take a look at the latest edition of Business Chief APAC.
