Table of Contents
Executive Summary
-
- The market
- Many young people have never dealt with a higher interest rate environment
-
- Figure 1: Annual average Bank of England base rate, FY 1975-Q1 2018
- Companies and brands
- Banks, challengers, and PFM apps set out their stalls for Open Banking
- The consumer
- Nine in ten people rate themselves as financially confident
-
- Figure 2: Confidence in managing finances, February 2018
- Insurance products draw the only stand-out switching rates
-
- Figure 3: Product switching behaviour, February 2018
- Parents are most likely to have an influence on financial management
-
- Figure 4: Influences on financial management, February 2018
- Online and in-branch banking are the dominant management techniques
-
- Figure 5: Tools and services used to manage finances, February 2018
- Free information sources favoured due to accessibility
-
- Figure 6: Sources of financial management information, February 2018
- Gap in financial education at school prompts strong feeling
-
- Figure 7: Attitudes towards financial management, by generation, February 2018
- What we think
Issues and Insights
-
- Providers can succeed where schools and universities fall short
- The facts
- The implications
- Cash infrastructure still holds an important place in financial management
- The facts
- The implications
The Market – What You Need to Know
-
- Interest rates expected to rise further and Open Banking stalls
Recent Developments
-
- Big banks delay Open Banking implementation as challengers push on
- First interest rate rise in almost a decade sparks speculation
-
- Figure 8: Annual average Bank of England base rate, FY 1975-Q1 2018
- Link has proposed a reduction of interchange fees charged to banks
Companies and Brands – What You Need to Know
-
- Banks, challengers, and PFM apps jostle for position
Company Strategies
-
- Traditional banks and building societies
- High street banks return to the advice market
- First Direct launches Artha app in partnership with Bud
- Digital challenger banks
- Starling Bank presses ahead with marketplace concept
- Tandem follows Harrods Bank buy with Pariti purchase
- Personal financial management (PFM) apps
- Emma makes a move into the payments space
- Yolt gathers up a strong share of users in first six months
- Bean looks to grow with help with recurring payments
The Consumer – What You Need to Know
-
- Nine in ten people rate themselves as financially confident
- Motivation and confidence drive higher switching of general insurance products
- Parents are most likely to have an influence on financial management
- Online and in-branch banking are the dominant management techniques
- Free information sources favoured due to accessibility
- Gap in financial education at school prompts strong feeling
Confidence in Managing Finances
-
- Nine in ten people rate themselves as financially confident
-
- Figure 9: Confidence in managing finances, February 2018
- The confident and the unconfident: who are they?
- The confident
- The unconfident
-
- Figure 10: Confidence in managing finances, by age and gender, February 2018
Product Ownership and Switching
-
- Insurance products draw the only stand-out switching rates
-
- Figure 11: Product ownership and switching behaviour, February 2018
- Figure 12: Proportion of product owners who have switched in the past 5 years, February 2018
- Higher earners are more likely to have switched
-
- Figure 13: People who have switched any product in the past 5 years, by gross annual household income, February 2018
- Confidence and switching are positively correlated
-
- Figure 14: Confidence in managing finances, by product switching behaviour, February 2018
Influences on Financial Management
-
- Parents are most likely to have an influence on financial management
-
- Figure 15: Influences on financial management, February 2018
- Banks and friends come in a distant second
- Schools and universities are at the bottom of the pile
- Younger people more likely to feel influenced across the board
-
- Figure 16: Influences on financial management, by age and gender, February 2018
Financial Management Tools and Services
-
- Online and in-branch banking are the dominant management techniques
-
- Figure 17: Tools and services used to manage finances, February 2018
-
- Figure 18: Number of tools/services used to manage finances, February 2018
- PFM apps struggle to rival spreadsheet management
-
- Figure 19: Tools and services used to manage finances, by generation, February 2018
Sources of Financial Management Information
-
- Free information sources favoured due to accessibility
-
- Figure 20: Sources of financial management information, February 2018
-
- Figure 21: Number of sources of financial management information used, February 2018
- 25-34s extend voucher and deal website use into financial services
-
- Figure 22: Sources of financial management information, by age, February 2018
Attitudes towards Financial Management
-
- Gap in financial education at school prompts strong feeling
-
- Figure 23: Attitudes towards financial management, February 2018
- A fifth of Millennials say it’s too late to make changes to financial management
-
- Figure 24: Attitudes towards financial management, by generation, February 2018
- Robo-advice could help empower the financially unconfident
-
- Figure 25: Interest in receiving automated online financial advice tailored to personal situation, by confidence in managing finances, February 2018
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Back to top