The UK Managing Household Finances Market Report identifies the impact of inflation on consumers’ spending patterns, consumer confidence and priorities when managing household finances.
Soaring rates of inflation and the increase to the energy cap are having a significant impact on consumers managing household finances. The ongoing conflict in Ukraine is likely to exacerbate inflationary pressure, with further supply chain issues and rising fuel prices. While many households say their finances are ok in the short term, the key issue will be the longevity of continued increases in living costs. With some consumers already struggling, financial providers will need to provide additional support.
While households can cut back in some areas and adjust spending patterns regarding travel, leisure and entertainment, for many, there will be little room for manoeuvre. Those already limiting energy usage and shopping at the cheapest supermarket for groceries will need additional financial support. Some will be forced to increase their borrowing, and there is a risk of households struggling to cover housing costs or defaulting on existing lines of credit.
As with the pandemic, the cost-of-living crisis could be a driver of change in consumer habits. Open Banking has been relatively slow in adoption, mainly due to a lack of awareness. There is no better time for banks and aggregators to highlight the benefits and launch innovative new tools to help consumers find cost savings and the most appropriate financial products.
To discover more about the UK Managing Household Finances Market Report 2022, read our UK Personal Pensions Market Report 2022, or take a look at our Financial Services Market Research Reports.
Brands: Barclays, HSBC, Lloyds, NatWest, Santander, Klarna, Laybuy, Clearpay, Zinia, Shawbrook, Keebo, Koody, Kalgera, ClearScore, Tesco, Iceland, Motatos.
This report, written by Adrian Reynolds, a leading analyst in the finance sector, delivers in-depth commentary and analysis to highlight current trends in the market and add expert context to the numbers.
With unprecedented inflationary pressure and soaring energy bills, managing finances could prove a difficult task for many households. Although many can withstand the rising cost of living in the short term, the key issue will be how long price increases go on. If financial services providers can boost awareness, the cost-of-living crisis could become a driver in the adoption of Open Banking platforms as consumers become more prepared to trade financial data for cost savings.”
Adrian Reynolds
Senior Analyst – Financial Services
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