Gamify money management
Starting to manage financial responsibilities as a young adult can be daunting. A 2017 UOB ethnographic study found that while millennial consumers value tips to help them track and better manage their finances, they respond best to interactive and engaging prompts.
UOB TMRW solves this problem by helping customers reach their savings goals in a more fun and easy way through an in-app game called City of TMRW.
Currently available in Thailand and Indonesia, City of TMR allows users to build a virtual city while saving money. As they level up, they unlock various options to improve their virtual city, which also spans different eras – from prehistoric to medieval to industrial and so on.
“The idea is to give users a more visual representation of how much money they’ve saved, breaking it down into smaller, more fun goals for them, like earning the next badge in TMRW Town,” says Lam. .
Accessibility for young users
Among younger and newer consumers without a credit card, deferred payment services such as buy now, pay later (BNPL) are growing in popularity. These services often offer flexible payment schedules, with zero interest rates within stipulated payment terms.
In Indonesia, UOB launched TMRW Pay, a BNPL service that helps young consumers in the country more easily manage their budget needs. It allows them to pay for their online purchases in installments, with no interest rate for up to 90 days.
“The median age in Indonesia is only 29. The country has a population of 279 million, which also means it has quite a large underserved segment,” says Lam.
He explains: “Many have just left school and are starting work, so it will take them a few years before they have access to a credit card.
“With TMRW Pay, they can access credit earlier, using forward-looking data, which could accelerate the acceleration of the country’s digital economy.”
Building resilience through financial literacy
In these uncertain and inflationary times, money remains a concern for ASEAN consumers. The UOB Asean Consumer Sentiment study found around six in 10 respondents across all age groups were worried about rising household expenses (64%), meeting long-term financial commitments (63% ) and a decline in their savings and wealth (65%). percent).
To help, UOB has launched various financial education initiatives to empower customers across the region.
In Indonesia, the bank launched a savings personality quiz on social media platforms to help customers better understand their savings style, so they can personalize their goals and approach.
In Thailand, UOB launched UOB Money 101, an online financial education program for nationally disadvantaged students, in September 2021. The program was designed to introduce students to the concepts of budgeting and defining money. goals, allowing them to start financial planning early.
Singapore consumers are more active in investing. The same UOB study found that 38% of consumers in Singapore invested more money in investments in the last six months of 2021, an increase of 8% from the previous year. Leading the way are millennials, with 46% saying they plan to invest more.
“UOB is focused on democratizing wealth management to help Singapore clients keep pace with inflation and provide them with the knowledge and resources to build a diversified investment portfolio that delivers returns long-term stable financials,” Mr. Kevin Lam, UOB Head of TMRW and Group Digital Banking, shared.
He adds, “By supporting our clients on their wealth creation journey, we hope to improve their financial lives and help them build their long-term financial resilience.