A new Standard Chartered study reveals that emerging affluent consumers in Asia could boost their savings by an average of 42 percent if they move from a basic savings approach to a low-risk wealth management strategy.

According to the Standard Chartered survey the emerging affluent are consumers who are earning enough to start saving, and investing, making them a crucial engine of economic growth.

The Emerging Affluent Report, «The Race to Save» reveals how this rising consumer class are losing out on savings as a result of an overly simplistic approach to their personal finances; in some cases, cash is literally sitting under mattresses instead of in bank accounts.

Wealth Diluted

While the emerging affluent are ‘active’ savers, with two in three (67 percent) putting money aside every month, a majority are using basic products – savings accounts and fixed-term deposits – to reach their financial goals.

A switch to a more effective approach could make a huge difference. Consumers in Hong Kong, Singapore and Taiwan could increase their savings by as much as 86 percent, 52 percent and 43 per cent respectively over 10 years.

«These ambitious consumers have pressing reasons to save, with access to the right information and simple, low-risk wealth management solutions, they will have a better chance of achieving their goals,» said Karen Fawcett, CEO of Retail Banking, Standard Chartered.

Other findings from the study, now in its third year, include:

Saving Regularly But Less Confident

The emerging affluent are saving regularly but their confidence seems to be slipping. At the end of 2016, fewer emerging affluent consumers in China, Hong Kong, India and Singapore were confident in reaching their savings goals (72 per cent), compared to 2015 (83 per cent).

Digitally-Savvy Save More

Digital banking tools have a good following among the emerging affluent, with more than half saying they use them at least sometimes and almost a quarter (23 per cent) using them frequently. The latter save, on average, 8 per cent more of their income than those who use digital tools less often or not at all.

China’s Entrepreneurial Emerging Affluent

Chinese emerging affluent are the most likely to use digital tools and services frequently and get expert money advice on social media (37 percent). They are also the most entrepreneurially-minded. A quarter cite funding a business as a top three priority, rising to one-third (32 percent) among millennials aged 25 to 34.