Australia has the highest use of the Buy Now Pay Later (BNPL) payment service of any country, with 24% of Australian consumers using the service, compared to just 11% globally, according to a new report.

Financial tribes you need to know report of the SaaS banking system provider Mambu also reveals that almost two-thirds (61%) of consumers globally have used digital banking services more in the past 18 months, and 22% of Australian consumers have started using digital banking for the very first time during the pandemic.

The report, which is the latest in Mambu’s Disruption Diaries series, surveyed more than 4,500 consumers worldwide – including 501 Australians – and identified five emerging financial ‘tribes’ that banks must know in a post-pandemic world. .

“The statistics around Buy Now Pay Later are really not surprising as Australia has been a leader in this area for many years thanks to the incredible success of the global industry leader Afterpay,” said Paul Apolony, Managing Director Australia and New Zealand at Mambu.

“What is surprising, however, is how much Australia lags behind the rest of the world when it comes to the adoption of cryptocurrency and other digital assets. Research shows that only 14% of Australians hold some form of crypto, compared to the global average of 31%.

“We are seeing a huge appetite for digital currencies in emerging economies like Vietnam (where 57% hold crypto) and Thailand (53%) which is just not yet replicated here, especially among the older generations. .

“However, we do know that digital financial technologies are important to Australian consumers, with 84% of them saying digital banking is an important service their bank can provide. Australia also ranks first of all the countries surveyed – at 76%, alongside the United Arab Emirates and Thailand – as the most likely to choose a bank that prioritizes profit.

“Each tribe tells us something important about how consumer behavior adapts and what banks need to do to stay ahead of the game. Traditional audience segmentation in financial services is outdated, ”said Eugene Danilkis, CEO of Mambu..

“The single model, in which customers are divided based on income, or just demographics, is redundant in a world of open finance and rich data.”

According to Danilkis if banks are to thrive in the future, “they need to think about how to affiliate with the dynamically changing groups within society and attract them with products and experiences that meet their shared values ​​and needs. financial.

“Globally, we have over 50 million end users on our Mambu platform, demonstrating the growing demand for new digitally enabled financial products. “

Applied futurist Tom Cheesewright added: “The banking and financial industry, which is as ‘legacy’ as the industries come, has been rocked by the sudden and overwhelming demand for digital.

“The impact of global lockdowns has propelled the world into its own digital future, suddenly causing a shift in attitude towards online banking, which was previously predicted to take years.

“Banks whose transformation plans were based on pre-COVID assumptions have been left behind by customers who have found new ways to manage their money during the pandemic, as illustrated by the ‘tribes’ identified in the report. . The pressure is now on financial institutions to demonstrate that they can be ethical, efficient and innovative. “

The main consumer groups identified in the survey include:

Technological accelerators

Recent converts to the digital banking world who embraced digital services amid physical branch closures. This group is the largest tribe in the world, accounting for one-third (33%) of total respondents and 36% of Australian respondents. This group is predominantly over 35 years old.

Ethical bankers

Young motivated savers who want to have a positive impact in the world. This tribe is the second largest in the world, accounting for 31% of respondents and 36% of Australian respondents. 76% of Australian consumers also say they would choose a bank that places the goal above profit, and more than half (53%) say it’s important to consider social impact when making a decision. ‘investment. Overall, this group is mainly aged 18 to 34 (49%).

Desires for convenience

One-stop shop buyers who want all-in-one services at their fingertips at no additional cost. This group represents 24% of Australian respondents (23% globally) and are predominantly middle-aged or older, more than half of whom (55%) are over 35. This group is the least likely to pay extra for time-saving services. or offer flexibility, expecting a top-notch customer experience as standard.

Covidpreneurs

Entrepreneurs who started their own businesses during the pandemic, in need of reliable and easy-to-use business banking services. Covidpreneurs are the youngest tribe in the world, with almost two-thirds (64%) under 35 and a quarter (25%) under 25.

New asset grabbers

New asset owners who want to use financial services to buy, trade, and hold assets. This group is the smallest, but rapidly growing tribe in the world. Two-thirds (66%) are men and more than half are under 35 years old. This group is the most likely to own neo-assets, including cryptocurrencies and NFTs, and the most likely to agree that the ability to buy, sell, or manage neo-assets is important in a bank.

The report notes that a third (33%) of Australian respondents viewed the ability to buy, sell or manage digital assets to be an important service in a bank – a figure which, with the recent announcement of one of the Big Four Australian Banks to become the first Australian bank to offer its customers crypto services through its digital app, is further proof of the growing credibility of cryptocurrency as an asset class in Australia.

For a full breakdown of the five tribes and regional analysis by country, you can download Financial tribes you need to know report here.

Key findings from the Australian survey

• 84% of Australian consumers say digital or online banking is an important service their bank should provide
• 76% say the best customer experience on the market is important in a bank
• 76% more likely to use a bank that prioritizes profit
• 55% are more likely to use digital or online banking services now than before the pandemic
• 14% of Australian respondents hold some type of cryptocurrency
• 33% of Australians surveyed say the ability to buy, sell and manage cryptocurrency through their bank is important
• 24% of Australian consumers use BNPL when shopping online, the highest of any country surveyed – global average 11%
• 21% of those polled said they were more likely to change banks after the pandemic.

Results of the larger APAC survey

• 71% of APAC consumers prefer to invest rather than spend their money
• 74% stick to a budget
• Financial security (85%), achievement of financial goals (87%) and return on investment (86%) are the most important when investing
• 50% of APAC respondents own a property
• 38% own cryptocurrency and 29% bought crypto during the pandemic
• Money transfers (91%), account balance checks (90%) and bill payment services (87%) are the most cited digital or online banking services.
• 74% of APAC respondents are likely to choose a bank that prioritizes profit
• 65% used online or digital banking services more frequently during the pandemic
• 75% are likely to continue to use online or digital banking services more frequently after the pandemic.

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