Financial Health Is Key To The Future of Work: PayPal Study

March 17, 20205:47 pm1221 views
Financial Health Is Key To The Future of Work: PayPal Study
Financial Health Is Key To The Future of Work: PayPal Study

The rapid adoption of newer technologies and transformation of socio-demographic trends has changed the landscape of work fundamentally. Singaporeans are not only highly aware of the impending changes to their careers, but they are welcoming of opportunities brought about by automation, artificial intelligence, machine learning, and other emerging technologies. 

  • 77 percent believe that their jobs will be highly impacted by new or changing technology in the next five years. This is seven percentage points more than the global average of 70 percent. 
  • 89 percent of Singaporeans believe that automation is good for the Singaporean economy. 
  • 79 percent of Singaporeans whose jobs are at high risk of automation are aware of this fact; the average global awareness is only 68 percent. 
  • 77 percent of all Singaporeans and 81 percent of those most at risk of job displacement due to automation have taken measures to upgrade their skills or learn new ones to prepare for these changes. 

PayPal “Financial Health for the Future of Work in Singapore findings revealed how the way people work in the future impacts the way the financial services industry needs to serve them. The report combines an analysis of a survey administered to 1,000 Singaporeans, extensive literature reviews, and more than 100 interviews with experts from all over the world, including several Singapore experts. 

See also: More Companies Enhancing Health Insurance Benefits to Stay Competitive in the Current Talent Market

Singaporean workforce still has a long way to go in preparing financially for automation and allied changes, noted the report. Workers in jobs that are at high risk of automation exhibit more signs of financial distress, and younger Singaporeans are also voicing their concerns regarding their long-term financial health and ability to retire in comfort. While Singaporean entrepreneurs are, in general, financially healthier than their global counterparts, more can be done to support the enterprises that are financially-distressed. Statistics show that: 

  • 54 percent of workers in jobs at high risk of automation have paid a bill late and incurred additional fees or interest in the last year, while only 34 percent of those in jobs at low risk of automation had done so. 
  • 34 percent of workers in highly automatable jobs would be unable to cover three months of expenses with their savings if they lost their main source of income – amongst those in jobs with low risk of automation, only 23 percent expressed difficulty covering three months of expenses with their savings 
  • 54 percent of the millennials surveyed expressed a lack of faith in their ability to retire at their desired age. With elderly employment on the rise, financial services will have many opportunities to step in to serve the needs of this growing segment of the population. 
  • 57 percent of all small business owners had paid a bill late and incurred additional fees or interest as a result in the past year, and nearly half (49 percent) of all entrepreneurs expressed interest in a product that would enable them to manage their cash flow with changes in income. 

Overall, the report reinforces the need for financial services supporting Singaporeans through the changes in their future of work, and calls for financial service providers to better serve the needs of a changing workforce and to build up the financial health of their customers. 

Elaborating on why financial health is important in increasing Singaporeans’ preparedness for the future of work, Steven Chan, Senior Director and Regional Head of Government Relations, PayPal, Asia Pacific said, “Financial services are instrumental in enabling people to manage changes during their working lives. Well-designed financial services enable people to stay on top of, and worry less about payments, spending, and saving. People rely on financial products to manage their financial wellness, especially in times of income uncertainty and job transitions.” 

“As recently witnessed, external factors and uncertainties such as natural disasters and pandemics can bring massive disruptions in our lives. With businesses and incomes being impacted, individuals have to seek alternative means to sustain themselves through challenging times. Having sound financial health can help us all remain resilient in the face of uncertainty. It can empower us to make confident and optimistic professional choices, even in volatile times,” Mr Chan explained. 

He also noted that planning for the financial health of Singaporeans require a concerted effort and enhanced public-private partnerships between universities, businesses, and policymakers. More findings in the report showcased how the financial services industry is well-positioned to innovate with more relevant financial products, based on the changing financial needs of the Singaporean population, and an in-depth understanding of their psyche when faced with a new Future of Work.

Read also: Data Skills Gap is Costing Singapore Companies S$5bn in Lost Productivity Annually