Digital money management empowers Malaysia’s emerging affluent to achieve financial success

KUCHING: Online banking tools are key to effective financial management with payments, transfers, investments and financial advice available at the touch of a button.

According to a Standard Chartered study, nearly twothirds of Malaysia’s emerging affluent believe managing their money digitally has helped them get closer to meeting their financial goals, and more than two-thirds feel familiarity with digital tools has been vital to their personal success.

The Emerging Affluent Study 2018 titled Climbing the Prosperity Ladder, examines the views of 11,000 emerging affluent consumers from 11 markets across Asia, Africa and the Middle East.

These are individuals who have enough money to spend, save and invest and their economic power has an impact on market growth. They have played an important part in creating their own prosperity by achieving more in their education, careers and businesses than their parents.

In Malaysia, 63 per cent of emerging affluent consumers say they feel have more control over their money and investments thanks to online banking. They are also embracing digital wealth management: more than half say they would invest in financial products online with assistance from an on- demand adviser.

Abrar Anwar, managing director and chief executive officer of Standard Chartered Malaysia said, “The emerging affluent consumers are on an upward trajectory. As their ambitions and aspiration grow, they are demanding convenient financial services and digital technology to broaden their access to money management and advance their financial wellbeing.

“Digital financial products are enabling the emerging affluent to achieve their goals, and these tools will be crucial in helping them take their personal financial success to the next level.

“It’s an exciting journey where they are not only improving their own lives, but they are also fuelling growth in some of the world’s most exciting markets.”

The emerging affluent in Malaysia have faith in their bank’s online services with 60 per cent trusting an online advisor with some, or all, of their life savings. But trust in online- only financial institutions drops off steeply, with just 39% saying they would do the same for online- only banks.

“Confidence with new technology is important for those who want to be financially digitally savvy, and this will allow them to make the most of new banking technology to manage and grow their wealth. But most concerning, this study reveals that not being up to speed with technology can block the emerging affluent from achieving their wealth goals at all.

“Those who aren’t digitally savvy are much less likely to take the opportunity to invest in financial products online, or get closer to achieving their financial goals by managing their money digitally,” Abrar added.

As embracing technology is helping people be more financially savvy than ever, going digital has never been so important for helping the emerging affluent move onwards and upwards.