Worryingly, over 90% of British consumers believe they are uneducated about personal finance and nearly half (47%) of them are looking to banks to help them, research shows.
Consumers in the UK are willing to seek help from banks despite 24% believing they have been misled by financial advice from them before.
This revelation comes from a new study commissioned by Pepper, the digital challenger bank from Israelâ€™s Bank Leumi. In the â€˜Banksâ€™ Role in Modern Societyâ€™ report, it claims 67% of Britons feel they are not well-equipped to make financial decisions for themselves and 68% also stated they are not financially observant.
The lack of financial literacy is quite high among young women in the UK, with only 28% agreeing they are well equipped to making good financial decisions.
Pepper CEO Michal Kissos Hertzog said, â€œConsumers want their bank to be much more than just a safe house for cash; they want more help with their money â€“ just like they donâ€™t use Spotify as their music storage only, they want to discover new artists through customised data.
â€œThe UKâ€™s financial literacy gap is preventing many Brits from making the best possible financial decisions and digital banks have a real opportunity to empower consumers to make better money choices.
â€œWeâ€™ve started to see this initiative with money management apps that provide personalised spending breakdowns, helping customers be better aware of how they are spending their hard-earned cash. With a flexible digital core, thereâ€™s no reason why traditional banks cannot provide such services and more, enabling customers to take charge of their finances.â€
The low levels of financial education are impacting how many consumers interact with investing. The report found 72% of consumers do not invest in stocks and shares or an investment fund, and 18% stated they did not even know how to.
Commenting on the findings Louise Hill, co-founder and COO, gohenry, the pocket money card and app for families, said: “The research results are clear â€“ adults want access to a similar service that we offer to 6-18-year-olds. Good money management is a vital life skill that, like most life skills, is best taught when young. We have a unique opportunity to use tech for good and teach the skills that can help the next generation of adults avoid the stress that comes with a lack of financial education.”
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