OREANDA-NEWS. March 11, 2011. Citibank (China) Co., Ltd. (“Citibank”) released the results of a Financial Quotient (“Fin-Q”) survey conducted with residents in Shanghai and Beijing that indicates 87% of respondents feel optimistic about their financial futures, reported the press-centre of Citibank.

Anand Selva, Country Business Manager of Consumer Banking, Citibank China, said, “The results from our most recent Fin-Q survey reflect the economic development that major cities in China continue to experience, and the wealth creation occurring in them. In 2011, we hope to witness ongoing progress when it comes to increasing numbers of Chinese consumer’s undertaking both financial education and wealth management with a view to ensuring their long-term prosperity.”

The Fin-Q survey, carried out in December 2010, provides a snapshot of the preparedness of individuals to manage their short, medium and long-term financial goals. It is the third year that Citi has conducted the survey in China.

Quality of Life and Financial Outlook
The 2010 Fin-Q survey found that 87% of respondents were satisfied with their quality of life, in addition to expressing strong optimism about their financial futures. In addition, 78% of respondents reported they felt confident about their country’s economic future, and a majority (54%) said they were better off than one year ago. A strong majority (79%) expressed confidence that their retirement savings will lead to a comfortable life in retirement.

The survey also looked to capture insights into the ability and approach of Chinese individuals to financial planning. Key findings included:

The top three concerns facing respondents was building their savings back up, looking for a better paying job and doing a better job of saving for retirement.

94% respondents made a monthly budget, with 67% always sticking to it, up 23% from the previous survey result

64% of respondents set aside or save some money every time they get paid.

A majority of respondents (54%) feel they had a “good” or “very good” understanding about money management and personal finances.

Almost three-in-five respondents (57%) said they’ve put the global financial crisis behind them and are focused on planning for retirement.

When asked about the current state of their retirement savings, 27% felt they knew how much they would need and were on track while another 59% were not sure how much they’d need but had started saving.

Asked about the role of financial information and advice in making their investment decisions, most respondents (60%) thought brokers/advisors are a good source of information but tend to make investment decisions by themselves.

Banking Experience
The survey also asked respondents about their views of financial service providers in China. Key findings included:

Almost all respondents (95%) expressed a wish to see their bank make better use of technology to improve the in-branch experience.

A great majority (93%) believe that over the past few years new technology has made banking easier.

A high number of respondents (87%) agree they are comfortable and feel secure conducting banking through remote channels such as phone, Internet or mobile banking.

Agreement by 90% of respondents that the level of customer service by Financial Institutions in China has been improving.

“These results reflect the progress the entire banking sector has made in China towards improving customer service standards. Citibank welcomes increasing competition in this area, and we remain committed to introducing new innovations as a means of further improving the customer service experience we provide,” Mr. Selva said.

Perceived Investment Options
The Fin-Q survey also examined respondent’s views towards investment. Key findings included:
78% of respondents indicated an interest in global investment opportunities.

56% of respondents are interested in being able to access investment products that invest overseas.

Asked where they would invest to maximize their return-on-investment over the next ten years, real estate was the option of first choice (36%) and shares in Chinese companies the investment of second choice (21%).

The Fin-Q survey reached out to 500 participants from Beijing and Shanghai. All respondents had to be over the age of 18 years. Respondents were asked to answer more than 40 questions covering a range of topics related to making smart financial decisions and having good financial habits. The combined Citi Fin-Q Score for respondents who took the survey in China in 2010 was 63.8 points out of a possible 100 points, up significantly from 56.6 in 2009.