Withering wealth? 15% of the mass affluent plan to increase their borrowing

Two in five affluent Singaporeans also said they intend to reduce spending this year.

Even the wealthy people in Singapore seem to have felt the financial effects of the pandemic, with 15% of the mass affluent saying they plan to increase their borrowing in 2022.

Data from RFI Global’s 2022 Post-Pandemic Consumer Banking Expectations Report showed that apart from increasing their borrowing, affluent Singaporeans also intended to reduce spending (39%), whilst one in five admitted to deferring loan repayments.

The study said reduced spending and increased borrowing of wealthy Singaporeans can be attributed to income decrease, which 43% of them had experienced.

To support their borrowing and other banking needs, one in five affluent Singaporeans said they are planning to switch bank providers this year and are in search of the most competitive deals.

“The pandemic has exacerbated financial hardship for customers regardless of income class,” said Aashish Sharma, Senior Director of Decision Management Solutions for FICO in the Asia Pacific. 

“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," Sharma added.