The cost-of-living crisis is driving consumers to focus on their immediate needs: raiding their savings; cutting back on investments and protection; and increasing their debt to fund their current requirements. And this is putting their longer-term financial plans at risk.
Associate Director, Robert Seffert comments: “The main way consumers continue to fund bills and purchases is by drawing upon their investments and saving. Though, many have now turned to debt to cope with the increasing cost of living. The use of buy-now-pay-later & borrowing is increasing, reflecting the dent in disposable income levels.”
How should banks respond? In our study, we found that a quarter of consumers believe banks should do more to advise. A key opportunity for the sector to build trust and credibility with their customers – download the full report here to find out how.
And for more on this story, check out our related blog here.
To carry out this research, we combined data from our Consumer Confidence tracker (2,000+ UK consumers) and our Consumer Omnibus (2,100+ UK consumers). To find out more about these products, click here and to read our latest Consumer Compass click here. And if you’d like to talk to our financial services team about this topic and see how we can support your strategy to becoming trusted advisors, get in touch: [email protected]
