Young people, defined as those aged between 18 and 34, and those in emerging markets are the most confident in their digital skills and intend to work harder to realise opportunities in a post-Covid-19 world, according to the findings of a recent global survey.
Covid-19 is significantly affecting personal finances, with one-third of respondents already earning less than they did before the outbreak began, the survey of 12,000 adults found.
More than half of the respondents expect the pandemic to further affect their income and/or employment, said the UK-based international banking group Standard Chartered, which conducted the survey.
Yet, people in emerging markets, and the young, are more confident in their digital skills and willing to adapt their approach to work after the pandemic, the survey revealed.
The findings indicated a stark contrast between the financial reality that people face and their confidence in the future, said Standard Chartered, which has presence in 60 markets globally.
This can be explained by a willingness -- particularly among young people and those in emerging markets -- to work harder, take steps to adapt income streams, and reskill if they can, in order to earn more, it added.
"Young people around the world have been hit particularly hard by the economic impact of the pandemic. Many are in insecure employment or graduating into a tough job market," said Ben Hung, CEO of retail banking and wealth management and regional CEO for Greater China and North Asia at Standard Chartered.
"Yet their confidence, adaptability and willingness to work hard, especially in fast-growing markets, provides hope for the recovery.
"Many are considering starting a new business in the wake of the pandemic and want to learn how to manage their finances better. They must be supported," he continued.
"Banks have a role to play both by helping them manage their money and providing tools that make banking easier so they can focus on leading the way to recovery."
Standard Chartered conducted the 10-minute online survey in early July, with 12,000 respondents across 12 markets: Hong Kong, Taiwan, China, Singapore, Indonesia, Malaysia, India, the United Arab Emirates (UAE), Kenya, Pakistan, the United Kingdom and the United States. The responses offer insights into their financial wellbeing and employment outlook in challenging times, and how banks can play a role in helping them manage their money.
According to the findings, young people are confident in their skills to thrive despite Covid-19 slump, with 80% of 18- to 34-year olds feeling they have the digital skills needed to thrive post-outbreak, compared to 63% of those over 65.
With many graduating or leaving school in the midst of a global recession, younger people are also more willing, or able, to adapt to the current circumstances. For example, 75% of 25- to 34-year olds would consider setting up a second income stream compared to 40% of those over 55; and 72% of all 18- to 44-year olds would reskill compared to 37% of those aged 55 and above.
Millennials and Generation Z are also more likely to respond to the crisis by starting a new business. Fifty-two percent of those aged 18 to 44 would consider doing so in the next six months compared to 30% of those 45 and above.
"Globally, this level of flexibility, adaptability and entrepreneurialism tends to decrease with age, along with confidence, despite -- or perhaps because -- older generations are more established in their careers," said Mr Hung.
The divide is even more stark when comparing developed and emerging markets. Those in established global economies are not only less confident they have the digital skills needed to thrive amid the downturn, they are also less willing to adapt and take steps to increase their income, he added.
More than 88% of people in China, India, Pakistan and Kenya indicated they would prefer to work more to get ahead than reduce their hours for less pay. Meanwhile, the UK and the US had the highest proportion of people who valued free time over more money (38% and 33%, respectively).
In terms of personal finances, Kenya (93%), China (85%), Malaysia (83%) and India (82%) had the highest proportion of people who want to better manage their money, to make it go further.
And while the pandemic has acted as a catalyst for the growth of online banking, with more than half of all respondents using online services more, the shift has been more apparent in fast-growing markets.
For example, increased use of mobile devices for banking is most prominent in India (79%), the UAE (72%) and Kenya (69%). Consumers in fast-growth markets -- Kenya (91%), India (84%) and Indonesia (84%) -- are also more likely to want their banks to help improve their confidence in managing money digitally as they increasingly look to bank online.
"There is one clear area of almost unanimous agreement: a global desire for more flexibility when it comes to working arrangements post-Covid-19," said Mr Hung. "For those for whom it is applicable, 71% would prefer to continue working from home at least two days a week once restrictions are lifted and 77% want more flexible working arrangements."
The survey was conducted as part of Futuremakers, Standard Chartered's global initiative to tackle inequality and promote greater economic inclusion in communities. Aimed at empowering young people to have the right skills to meet their full potential, the programme provides young people from low-income households, particularly girls and people with visual impairments, with opportunities for skill development.