Moneyhub research shows cash savings fell by 24.5% over last year

The latest proprietary insight from Moneyhub, the market-leading data and payments platform’s Financial Wellness Tracker, reveals that consumer cash savings fell by 24.5% in the 12 months to August 2024.

Be the first to comment

External

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

This coincides with an individual’s capacity to save without making any changes to their overall spending behaviour, falling by 5.5% over the same period.

Indeed, consumers' non-discretionary spending needs (e.g. mortgage/rent, utilities and groceries) rose by 2.6% over the last 12 months, likely prompting the drop in their discretionary spend of 1.6% over the year.

Moneyhub’s Financial Wellness tracker, released each month, tracks consumer spending and saving trends across five key indices; savings, savings capacity, spending on essentials, discretionary spending, and debt to income ratios. 

Commenting on the monthly findings, Samantha Seaton, CEO, Moneyhub, said: “While inflation has dropped and costs are beginning to ease back to a semblance of normality, it’s clear that the cost of living crisis lingers on for a vast swathe of the population. The fact that an individual’s capacity to save without making significant lifestyle changes continues to dwindle is worrying. Especially with many fixed-rate mortgages still to rise by quite some over the next year.

“Access to cash when it’s most needed provides consumers with a sense of financial security that supports their overall well-being. Businesses that are able to provide their customers a full view of their financial worlds; all incomings, outgoings, savings and investments, in a single place via platforms such as Moneyhub, will help individuals take stock and make more informed choices and build buy-in and loyalty.This consent-driven data will also enable businesses to offer more personalised products and services that ultimately better benefit their customers.”

Sponsored [Webinar] AI in Banking: Building Compliant and Safe Enterprise AI at Scale

Comments: (0)

[Webinar] AI in Banking: Building Compliant and Safe Enterprise AI at ScaleFinextra Promoted[Webinar] AI in Banking: Building Compliant and Safe Enterprise AI at Scale