Most Asian consumers reject financial advice from companies: report

Most notably, the ‘Global survey of investment attitudes’ highlights a possible gap in the market for financial planning advice from a trustworthy source. While nearly half the consumers surveyed hold personal investment products, just over one fifth have enlisted the services of a financial adviser.

Close to half said they preferred to rely on themselves when making decisions around personal finances as they “do not trust anyone else”; close to 20 per cent said they chose to consult friends, relatives and colleagues for advice. Nine per cent said they relied on investment tips from TV, radio and online commentators, while four per cent said they preferred to rely on intuition or impulse without strong background knowledge.

The findings emphasise both the shortcomings of the financial services industry in communicating objectivity, and the importance of building advocacy among consumers who are likely to strengthen the reputation of a company they are satisfied with and recommend it to others.

In a statement, Therese Glennon, managing director of consumer insights for Nielsen Asia-Pacific, Middle East and Africa, said there were “ample opportunities for financial services providers to engage with and become a bigger part of consumers’ financial journeys”. Companies should offer wealth management services and payment options that take into account “different lifestyles and needs”, she said.

The appetite for investment is considerable. At 31 per cent, Asian consumers are two times more likely than the global average to put spare cash into stocks and mutual funds. Stocks are the most popular form of investment, particularly in Singapore, Japan and Australia, followed by mutual funds and unit trusts, and precious metals. The latter are a popular investment choice in markets such as Indonesia, Thailand and Vietnam.

However, attitudes to risk vary. A total of 17 per cent of consumers said they were not prepared to accept any potential losses on their investment. Vietnam and Malaysia were found to be home to the most conservative investors. However, those in the Philippines and Indonesia appear more open to risk-taking. Around one third in both markets said they would accept fluctuations of 15 per cent or more in their portfolios.

In terms of transaction habits, the research found that the majority of consumers preferred to use cash for general shopping, dining, travel and entertainment. Credit card usage stood at nearly 60 per cent, and 40 per cent reported using debit cards. In addition, around 20 per cent used electronic wallets.

The study canvassed 7,000 consumers across the region out of a total 28,000 globally.