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UK Consumers and Financial Management Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Consumers and Financial Management market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

What you need to know

Financial management is a discipline that must be learned, but is not typically taught, leaving people to pick habits up here and there. Parents are a significant influence, but it can sometimes feel confusing and complicated when advice comes from a broad range of sources, particularly for young people.

Open Banking represents a huge opportunity for product providers to position themselves as more supportive than perhaps they have been in the past, and for app providers to build an excellent affinity with their users. Product providers which choose to offer Open Banking apps could be in a strong position to secure future business in a much more fluid market for financial products.

This Report covers how people manage their finances today, with a review of the types of financial management tools offered and the range of influences that act on people as their financial literacy develops. Mintel’s exclusive consumer research explores people’s financial confidence and their attitudes towards financial management in general.

Expert analysis from a specialist in the field

Written by Patrick Ross, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Open Banking is on the cusp of full implementation, and the financial management landscape feels ripe for a shake-up. That said, many are still comfortable using spreadsheets or paper-based methods, while financial confidence is being undermined by a lack of formal financial education. Providers can step in to provide support that is sorely needed. Patrick Ross
Senior Financial Services Analyst

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Table of contents

  1. Overview

    • What you need to know
    • Executive Summary

        • The market
          • Many young people have never dealt with a higher interest rate environment
            • Figure 1: Annual average Bank of England base rate, FY 1975-Q1 2018
          • Companies and brands
            • Banks, challengers, and PFM apps set out their stalls for Open Banking
              • The consumer
                • Nine in ten people rate themselves as financially confident
                  • Figure 2: Confidence in managing finances, February 2018
                • Insurance products draw the only stand-out switching rates
                  • Figure 3: Product switching behaviour, February 2018
                • Parents are most likely to have an influence on financial management
                  • Figure 4: Influences on financial management, February 2018
                • Online and in-branch banking are the dominant management techniques
                  • Figure 5: Tools and services used to manage finances, February 2018
                • Free information sources favoured due to accessibility
                  • Figure 6: Sources of financial management information, February 2018
                • Gap in financial education at school prompts strong feeling
                  • Figure 7: Attitudes towards financial management, by generation, February 2018
                • What we think
                • Issues and Insights

                  • Providers can succeed where schools and universities fall short
                    • The facts
                      • The implications
                        • Cash infrastructure still holds an important place in financial management
                          • The facts
                            • The implications
                            • The Market – What You Need to Know

                              • Interest rates expected to rise further and Open Banking stalls
                              • Recent Developments

                                • Big banks delay Open Banking implementation as challengers push on
                                  • First interest rate rise in almost a decade sparks speculation
                                    • Figure 8: Annual average Bank of England base rate, FY 1975-Q1 2018
                                  • Link has proposed a reduction of interchange fees charged to banks
                                  • Companies and Brands – What You Need to Know

                                    • Banks, challengers, and PFM apps jostle for position
                                    • Company Strategies

                                      • Traditional banks and building societies
                                        • High street banks return to the advice market
                                          • First Direct launches Artha app in partnership with Bud
                                            • Digital challenger banks
                                              • Starling Bank presses ahead with marketplace concept
                                                • Tandem follows Harrods Bank buy with Pariti purchase
                                                  • Personal financial management (PFM) apps
                                                    • Emma makes a move into the payments space
                                                      • Yolt gathers up a strong share of users in first six months
                                                        • Bean looks to grow with help with recurring payments
                                                        • The Consumer – What You Need to Know

                                                          • Nine in ten people rate themselves as financially confident
                                                            • Motivation and confidence drive higher switching of general insurance products
                                                              • Parents are most likely to have an influence on financial management
                                                                • Online and in-branch banking are the dominant management techniques
                                                                  • Free information sources favoured due to accessibility
                                                                    • Gap in financial education at school prompts strong feeling
                                                                    • Confidence in Managing Finances

                                                                      • Nine in ten people rate themselves as financially confident
                                                                        • Figure 9: Confidence in managing finances, February 2018
                                                                      • The confident and the unconfident: who are they?
                                                                        • The confident
                                                                          • The unconfident
                                                                            • Figure 10: Confidence in managing finances, by age and gender, February 2018
                                                                        • Product Ownership and Switching

                                                                          • Insurance products draw the only stand-out switching rates
                                                                            • Figure 11: Product ownership and switching behaviour, February 2018
                                                                            • Figure 12: Proportion of product owners who have switched in the past 5 years, February 2018
                                                                          • Higher earners are more likely to have switched
                                                                            • Figure 13: People who have switched any product in the past 5 years, by gross annual household income, February 2018
                                                                          • Confidence and switching are positively correlated
                                                                            • Figure 14: Confidence in managing finances, by product switching behaviour, February 2018
                                                                        • Influences on Financial Management

                                                                          • Parents are most likely to have an influence on financial management
                                                                              • Figure 15: Influences on financial management, February 2018
                                                                            • Banks and friends come in a distant second
                                                                              • Schools and universities are at the bottom of the pile
                                                                                • Younger people more likely to feel influenced across the board
                                                                                  • Figure 16: Influences on financial management, by age and gender, February 2018
                                                                              • Financial Management Tools and Services

                                                                                • Online and in-branch banking are the dominant management techniques
                                                                                    • Figure 17: Tools and services used to manage finances, February 2018
                                                                                    • Figure 18: Number of tools/services used to manage finances, February 2018
                                                                                  • PFM apps struggle to rival spreadsheet management
                                                                                      • Figure 19: Tools and services used to manage finances, by generation, February 2018
                                                                                  • Sources of Financial Management Information

                                                                                    • Free information sources favoured due to accessibility
                                                                                        • Figure 20: Sources of financial management information, February 2018
                                                                                        • Figure 21: Number of sources of financial management information used, February 2018
                                                                                      • 25-34s extend voucher and deal website use into financial services
                                                                                        • Figure 22: Sources of financial management information, by age, February 2018
                                                                                    • Attitudes towards Financial Management

                                                                                      • Gap in financial education at school prompts strong feeling
                                                                                          • Figure 23: Attitudes towards financial management, February 2018
                                                                                        • A fifth of Millennials say it’s too late to make changes to financial management
                                                                                          • Figure 24: Attitudes towards financial management, by generation, February 2018
                                                                                        • Robo-advice could help empower the financially unconfident
                                                                                          • Figure 25: Interest in receiving automated online financial advice tailored to personal situation, by confidence in managing finances, February 2018
                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                          • Abbreviations
                                                                                            • Consumer research methodology