Gig economy workers most stressed and anxious about their relationship with money: GXS 

GIG economy workers polled by digital bank GXS cited stress and anxiety as the two top emotions where money is concerned.

The survey of 1,300 respondents in Singapore between 15 and 59 years old found that 32 per cent said stress was the top emotion experienced when making a financial decision. This was followed by optimism at 28 per cent.

For gig workers, negative emotions were amplified, with 43 per cent of respondents feeling stressed when making such a decision. The next top emotion was anxiety at 41 per cent.

Overall, the respondents appear to be less optimistic (28 per cent) or confident (26 per cent) about their financial progress. Across age groups, those between 55 to 59 years old scored the highest in optimism, at 37 per cent, with those aged 15 to 24 years old scoring the lowest, at 18 per cent.

Family was the top category for spending at 55 per cent. Coming in second place was travel, at 42 per cent, and health and fitness came in third at 40 per cent.

The survey was used to glean a score for the GXS Progress Quotient (GPQ), an index to measure an individual’s perceived potential for financial progress. A score of one would be an individual perceiving a pessimistic view on their financial progress, and a score of 10 would mean a very optimistic view.

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Singapore scored 5.2 on the GPQ, indicating a neutral view across consumers. Across age groups, those between 45 and 54 years old showed the highest GPQ, at 5.4, and those from 15 to 24 years old showed the lowest GPQ, at five.

The top driver of what could make Singaporeans feel better about their financial prospects is education, according to 48 per cent of respondents. Self-employed and fresh graduates rate it higher at 51 per cent.

Luck was the next highest driver at 44 per cent of respondents. They believed that an element of luck would be beneficial, with 54 per cent of those between 55 to 59 years old attributing it as a factor for future progress in life.

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With education the top driver, the digital bank has tweaked its communication to borrowers about their loans, said Muthukrishnan Ramaswami, GXS chief executive officer. The digital bank is also researching on the various ways to educate the public.

“In our first year, we have already gleaned insights from the research that we are using to shape the GXS experience for our customers, such as using financial literacy to help alleviate the anxiety they may experience in their financial journey,” he said.

More proactive educational initiatives would include heading to campuses of Singapore universities and polytechnics, according to Ramaswami. Currently, GXS is still in talks with these institutions, and the initiative will likely take place only next year.

“It is not a coincidence that segments which have traditionally been underserved by financial services say that access to financial education and relevant banking products can help them to manage their finances better,” said Jenn Ong, head of retail at GXS.

The digital bank will look to launch new features on existing products in the coming months, with new offerings slated for the fourth quarter this year.