Adoption of cryptocurrency set to rise among young Singapore residents, YouGov study
While those aged 25 to 34 will be the largest transactors, the biggest boost in activity will be seen in those aged 35 to 44
As cryptocurrency continues to gain interest around the world, a new global report by YouGov sheds light on transaction behaviour in Singapore – which was found to be the fourth highest among the 18 markets included in the study. One in ten residents has transacted cryptocurrencies in end-2021 (13%), with one in eight expecting to do so in the next twelve months (16%), hinting at a comparatively high level of interest.
YouGov’s Global Banking & Finance Report 2022 explores the current global financial landscape, and identifies global adoption of, and trust in, new and emerging financial services like cryptocurrencies, buy now pay later plans, and sustainable investments.
Looking across age breaks, those aged 18-24 and 25-34 were significantly more likely to have transacted cryptocurrencies last year, with the latter having the most activity (27%). While this demographic is similarly expected to be the biggest transactors for the next year – with almost three in ten owning, holding, buying, or paying with cryptocurrencies (28%) – the biggest jump in activity will be seen among those aged 35-44, with almost a quarter intending to transact cryptocurrencies in 2022 (23%). While a miniscule 3% of those above the age of 55 transacted cryptocurrencies last year, this is set to increase to one in twenty (5%).
The variation in activity across age groups could be attributed to perceived trustworthiness of the digital currency. Younger adults are more likely to place their trust in cryptocurrencies, with a quarter saying they trust cryptocurrencies (27% for 18-24 and 24% for 25-34), as compared to only one in ten of those above the age of 45 who say the same (10% for 45-54 and 8% for 55+). Those aged 35-44 make up the middle ground, with three in twenty placing their trust in cryptocurrencies (16%).
Whilst the adoption for cryptocurrencies is higher among young adults, YouGov Profiles data reveals that the understanding of the digital currency is generally low throughout the population. Six in ten Singapore residents (62%) agree with the statement “I don’t really understand cryptocurrency,” indicating that a proper grasp of the digital currency and how it works is low, pointing at a need to address this information gap.
Understanding, as was seen with trust, varies in the different age groups, with younger adults significantly more likely to disagree with the statement. Meanwhile, those above the age of 45 are significantly most likely to express they do not understand cryptocurrencies (64% for those aged 45-54 and 55+).
Emma McInnes, Global Sector Head of Financial Services at YouGov, said: “The financial services industry has been undergoing rapid transformation driven by both changing consumer expectations and wider industry fragmentation. We have seen the profound impact that digitisation has had on consumer behaviours and expectations, and the dramatic effect of the pandemic on both technology change and patterns of behaviour.”
“For established financial services providers, this creates a challenge in terms of being able to understand the rate of change, the potential success and longevity of emerging innovation adoption, and where they should be focusing their own transformation efforts. For new market entrants, the challenge sits in keeping ahead of the innovation curve and understanding how to drive consumer adoption before traditional brands can react.”
For more insights and analysis, download the full Global Banking & Finance Report 2022 here.
Methodology:
The insights in the Global Banking & Finance Report 2022 are drawn from a recent global YouGov Custom Research survey on the future of financial services and, specifically, exploring evolving trends in the financial services industry and the future financial services landscape, covering 18 global markets of more than 20,000 respondents. The survey was fielded the week of 15th December – 30th December 2021.
YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data is nationally representative and weighted by age, gender, and race in Singapore. Learn more about Profiles.