Key facts
- Half of UK consumers surveyed said they are “obsessed” with
checking their banking apps and balances, according to new FIS
research.
- Eight in 10 UK consumers are utilising financial apps - online
banking and mobile wallets being the most common.
- Mobile banking is the top reason for respondents’ loyalty to
their primary bank across all generations surveyed.
Global financial technology leader FIS® (NYSE: FIS) has
conducted new research showing that widespread financial anxiety
among UK consumers has led to a phenomenon known as 'financial
doomscrolling’ - a term describing the excessive monitoring of
account balances and banking apps.
Amid a period of political and economic uncertainty, 51% of the
consumers surveyed said they are “obsessed” with checking their
financial apps, with 63% of Generation Z (18-27-year-olds) and 64%
of Millennials (28-42-year-olds) experiencing this habit.
The new research by FIS involved a survey of more than 2,000
consumers from across the UK and explored how different generations
– from Generation Z to Baby Boomers – are thinking about their
finances, as well as the tools they use to manage them across the
money lifecycle.
The survey showed that financial concern is rife among UK
consumers, with 58% of respondents feeling “worse off” than 12
months ago, 35% struggling to save, and 75% unable to meet their
financial goals due to inflation and the rising cost of living.
Rob Hudson, Head of International Banking and Payments at FIS
commented: “The UK’s cost of living crisis, spiking inflation and
high interest rates have pushed consumers into survival mode. Our
research suggests this is manifesting in ‘doomscrolling’ and an
obsession with monitoring financial apps, as people ponder how best
to put their money to work.”
Widespread financial anxiety has led to an “obsession” with
monitoring banking apps and balances.
Overall, 51% of consumers said they are “obsessed” with checking
their financial apps and this is particularly true of younger
consumers, with nearly two-thirds of Gen Z and Millennials
admitting to the obsession (63% and 64% respectively). Just as
‘doomscrolling’ describes the excessive consumption of negative
material online, this data suggests the same is happening when it
comes to regularly and repeatedly viewing financial
information.
Tied to this trend, 45% of consumers in the UK say they think
about their money and financial situation on a daily basis –
typically around five times a day - while 37% check their current
account balance daily.
When asked why they are thinking about their money so
frequently, 41% said they are worried about their financial
situation, while 47% are thinking about how to improve it.
Mobile apps are the driving force behind consumers’ loyalty
to their bank.
Despite expressing a sense of financial doom and gloom, over
two-thirds of UK consumers surveyed (68%) said they are extremely
or very satisfied with their primary bank. More than three quarters
(77%) of respondents are not likely to switch their primary bank in
the next year, rising to 87% for the Baby Boomer generation.
In a clear shift away from brick-and-mortar banking, over 8 in
10 people surveyed are utilising financial apps – online banking
and mobile wallets being the most common – and most consumers are
unfazed by bank branch closures, with 79% claiming they have seen
little to no impact.
Strikingly, mobile banking is the top reason for every
generation’s loyalty to their primary bank. Overall, 56% of
consumers listed mobile banking capabilities as a benefit of being
a customer with their primary bank, rising to 63% for Gen Z.
Rob Hudson of FIS commented: “Mobile banking and financial apps
have proven essential to customer satisfaction and loyalty – and
they have a crucial role to play in informing, educating and
offering choice to consumers.”
“Younger generations in particular want their financial
experiences to be as intuitive as scrolling through social media.
Financial service providers have an opportunity to unlock value for
consumers by embracing technology throughout the money lifecycle,
while using their trusted relationships to help customers move away
from doomscrolling and towards financial freedom,” he added.
Cost-of-living pressures and financial pessimism persist, as
consumers strive to make ends meet.
The survey confirms that many UK consumers have struggled to
save money in the past 12 months amid the cost-of-living crisis.
Four in 10 respondents said they do not have funds to cover three
months of living expenses and 35% have less than £500 in savings.
Generation X are the least likely generation to have savings, with
27% revealing they have none whatsoever.
Some UK consumers are relying on credit, with 33% admitting to
over £1,000 of credit card debt.
Generally, more than half of the UK consumers surveyed feel
worse off now than they did a year ago and the outlook is
pessimistic; 33% believe their situation will remain the same over
the course of the next 12 months, and 40% feel their situation will
worsen.
Consumers are abandoning traditional financial goals and
embracing ‘loud budgeting’ in efforts to live within their
means.
The research also suggests that openly discussing one’s
financial situation is no longer considered taboo. The most common
financial goal in the last 12 months was “saying no” to unnecessary
spending, as 48% of consumers embrace ‘loud budgeting’ – a trend in
which individuals vocalise what they can and can’t afford, and
therefore hold themselves publicly accountable to living within
their means.
In the survey, 61% of all UK consumers said they feel
comfortable talking about their finances with family and friends.
This sentiment increased to 67% of Gen Z, who appear in favour of a
more open dialogue around money.
About the Research
FIS’ survey was conducted by Savanta in April-May 2024. The
research explores how the UK’s collective financial mindset has
evolved following a period of economic uncertainty, as well as the
role of financial technology and the impact to banks and financial
service providers.
The UK data is based on a representative sample of 2,008 adult
consumers across the UK, spanning Generation Z (18-27), Millennials
(28-42), Generation X (43-58) and Baby Boomers (59+).
About FIS
FIS is a financial technology company providing solutions to
financial institutions, businesses, and developers. We unlock
financial technology to the world across the money lifecycle
underpinning the world’s financial system. Our people are
dedicated to advancing the way the world pays, banks and invests,
by helping our clients to confidently run, grow, and protect their
businesses. Our expertise comes from decades of experience
helping financial institutions and businesses of all sizes adapt to
meet the needs of their customers by harnessing where reliability
meets innovation in financial technology. Headquartered in
Jacksonville, Florida, FIS is a member of the Fortune 500® and the
Standard & Poor’s 500® Index. To learn more, visit
FISglobal.com. Follow FIS on LinkedIn, Facebook and
X.
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version on businesswire.com: https://www.businesswire.com/news/home/20240626894657/en/
For More Information Kim Snider, 904.438.6278 Senior Vice
President FIS Global Marketing and Communications
kim.snider@fisglobal.com
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