The United Overseas Bank (UOB) Young Professionals Survey* has found that millennials’ wanderlust and desire to share culinary experiences with their friends and families are shaping their spending behaviour. UOB hopes to serve one in two millennials over the next three years as they will soon make up the largest demographic of consumers in Singapore.
UOB defines millennials as individuals aged between 26 to 35 years old. According to the Singapore Department of Statistics, there were more than half a million millennials in Singapore** in 2015. Of these, about 90% have entered the workforce***, many as young professionals****.
In 2015, UOB’s millennial customers were more willing to spend on dining out and entertainment than their older peers*****. They spent 13% more on food and travel****** as compared with customers above the age of 35. Jacquelyn Tan, Managing Director and Regional Head of Cards and Payments, UOB, said that within the next decade, millennials’ spending habits will form the backbone of the future economy as they will become the largest segment of the local workforce.
“Millennial spending currently accounts for 20% of UOB’s total card spend and one in three millennials in Singapore currently banks with UOB. We expect the number of our millennial customers to increase as we introduce more products and services that meet their lifestyle and banking needs,” said Tan.
According to UOB’s data, millennials, as digital natives who grew up on the Internet, spent 10% more online in 2015 compared with 2014. Travel accounted for the largest share of all online spend (35%). Top travel websites included Agoda, Tiger Airways, Scoot, Jetstar and Expedia. Based on data gleaned from the spending and lifestyle habits of millennials and a customer poll conducted in January this year of over 600 UOB cardmembers aged between 26 to 35 years old, the Bank is boosting its offering to this group of customers starting with the launch of a new credit card – UOB YOLO.
The essence of the card is encapsulated in the millennial mantra You only live once. The new card gives millennials priority access to popular bars and clubs such as Kyo and Timbre, access to dining deals at the latest restaurants and rebates on popular travel websites such as Agoda and Expedia. The UOB YOLO also features Southeast Asia’s first ‘quick read’ card face, designed to make customers’ e-commerce experience more convenient. Instead of the 16-digit card number laid out in a horizontal line, the card numbers are laid out in a 4-by-4 stack on the top right hand corner of the card, making it easier for customers to read when conducting online transactions.
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UOB YOLO customers who are adept in all things digital can also be among the first in Asia Pacific to make contactless payments with tokenised security. All they have to do is tap their Android smartphones at more than 10,000 near field communications (NFC)-enabled terminals in Singapore through the Bank’s mobile app UOB Mighty. The app further offers them access to exclusive local dining deals and authentic food reviews.
“The UOB YOLO is part of the Bank’s larger strategy to serve young professionals’ financial needs in one of Asia’s most prosperous economies. It demonstrates our commitment to enhancing the banking experience for this group of customers. We are confident that UOB’s digitalisation journey will be relevant and will make banking and payments more convenient for our customers,” said Tan.
Millennials and the young-at-heart who would like a UOB YOLO can visit the microsite.
*The customer survey polled 621 UOB card members aged between 26 to 35 years old. It was conducted by UOB in January 2016.
*****According to UOB’s data on 2015 credit card spend.
******Travel constitutes air tickets, lodging and other travel services.