Brits could save GBP 24.5 bln yearly via digital financial management tools
UK consumers using digital financial management tools save an average of GBP 4,451 annually, with 7.6 million users collectively gaining GBP 3.384 billion per year. If all UK adults adopted these tools, an additional GBP 24.5 billion could be added to consumer wallets annually. This is according to new research released by Tink.
Improving financial health during cost of living crisis
Tink’s research comes at a time when an estimated three quarters (75%) of consumers surveyed across the UK say they are mindful about what they are buying because the cost of goods is too high.
When asked about personal finance goals for 2024, almost half of consumers surveyed said they wanted to build savings pots (49%). More than a quarter surveyed want to cut off unnecessary expenses (27%) or build an emergency fund (26%).
It is no surprise therefore that consumers are using the money saved through digital financial management tools to work towards these personal finance goals. Over a third (39%) of those surveyed used the extra funds to increase their savings contributions and almost one in four (23%) paid down their debt. This suggests a clear link between using these services and improved financial health.
Digital financial management tools build engagement and loyalty for banks
Banks looking for a competitive edge can capitalise on clear consumer demand for digital financial management tools. Half of consumers (50%) surveyed would like their banking app to help them track spending on subscriptions, and over a third (37%) would like their bank to give them better visibility over their finances.
The survey also suggests that some consumers are more likely to consider switching banks to gain access to better support and tools to help them manage their finances. Over a third (36%) of respondents say they would switch to another bank if it provided them with tailored support to meet their financial goals. A similar number (32%) would switch to another bank if it provided them with tools to track and manage their spending.
As well as driving loyalty and engagement, respondents from a separate Tink survey of banking executives reported additional benefits from providing these services. Almost half (46%) of banks offering digital financial management tools reported seeing increased ‘top of wallet’ behaviour in consumers – such as greater card usage and higher payment volumes.
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