In 2017, the Financial Conduct Authority released the latest version of its Financial Lives Survey. Based on over 13,000 interviews, within this blog post we’ve pulled out some of the key takeouts.
At Quo Money we’re always looking to understand the needs, wants and desires of our customers, by understanding and respecting our customers we can ensure that we are setting the right priorities and creating products that people love.
We find reports like the FCA‘s Financial Lives Survey extremely valuable in giving an insight into the financial lives of UK consumers. Whilst there are lots of interesting blog posts out there giving insights, they often are based on relatively small samples and as such are subject to selection bias.
Conversely, the Financial Lives Survey, repeated bi-yearly, is according to the FCA “representative of UK adults – the financial products they hold today, their attitudes, and their experiences of dealing with these products and services and the firms who provide them”. The conclusions from this report are highly influential, helping the FCA shape the regulation it sets with a view to protecting customers.
From reading the report, there were a number of findings that we hope Quo Money can address, these are:
- It was found that 42% of UK adults are not confident in the UK financial services industry, it seems that people trust banks t0 hold their money, but not to take their advice. We hope that the rise of challenger banks and the rise of fintech will empower consumers to feel more in control and re-build their trust in financial services.
- It was found that 42% of UK adults are dissatisfied with their finances, wanting to achieve more. We hope that with our daily nudges and long term active plan will help people change behaviours and putting them back in control.
- There are 1.3 million people in the UK with no bank account, classified as “unbanked”. These consumers are typically aged between 18-24 years old, based in urban locations and unemployed.
- It was found that 50% of the UK adult population demonstrate attributes of potential vulnerability. With 7.4 million adults classified as being over-indebted, believing “their household could continue to cover living expenses for under a week if they lost their main source of income”.
Quo Money aims to provide people with simple, actionable advice to increase their financial capability and give them the headspace to plan ahead. By using education to change behaviour, we create a more empowered customer, one more able to reach their potential and perform at their peak. Unfortunately, this is not how the world works and many people remain stuck serving the short term.
We’re always on the look out for informed consumer insight, if you know of any great reports, please don’t hesitate to share!