A recent study by Tink has highlighted substantial financial benefits for UK consumers using digital financial management tools.
Amidst the rising cost of living, these tools have become crucial in aiding consumers to better manage their finances, potentially adding a significant £24.5bn to consumer wallets annually.
According to Tink’s research, approximately 7.6 million Brits currently use digital financial management tools, resulting in an individual financial gain of roughly £37.08 monthly, equating to about £445 annually. If extended to every UK citizen over the age of sixteen, the collective benefit could soar to £24.5bn annually.
During a period marked by heightened awareness of expenditures due to high goods prices, 75% of surveyed consumers expressed a keenness to monitor spending. Financial priorities have shifted towards building savings, with 49% aiming to increase their savings pots, while others focus on cutting unnecessary expenses (27%) and establishing emergency funds (26%).
The implementation of digital financial management tools not only supports personal financial goals but also enhances consumer engagement and loyalty for banks. Many users, representing half of the surveyed group, seek features in their banking apps that track subscription spending and provide greater financial transparency. Furthermore, about 36% of respondents would consider switching banks for better financial management support.
Banks that offer these tools have noted increased ‘top of wallet’ behavior, leading to higher card usage and payment volumes, according to Tink’s survey of banking executives. Tink’s UK&I Banking & Lending Director, Jack Spiers, emphasized the material impact of financial management tools on consumers’ financial and overall well-being, ranging from reduced stress to heightened happiness.
The survey underscores a significant demand among consumers for digital solutions that can enhance their financial insight and control. This trend presents an opportunity for banks to differentiate themselves in a competitive market by offering tailored financial tools that meet evolving consumer needs.
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