UK, 13th February 2020: Analysis of StepChange Debt Charity’s clientele has disclosed new insights regarding the financial behaviour of people making steps towards debt recovery.
A study conducted by Experian revealed that 88% are very engaged with the online world, however a significant 40%, are unlikely to be managing their finances digitally. StepChange Debt Charity has recognised the potential of the latest online tools that may facilitate individuals build financial resilience and get over their previous debt problems.
The majority of the people surveyed were found to be online enthusiasts. Mainly from lower income households, they’re active social media users and are probably high users of digital entertainment services, like gaming and video streaming websites, however a lot less likely to interact with FinTech tools – along with online banking services.
Age was identified to be the largest influencer of digital engagement. 14% of StepChange Debt Charity clientele were those with young families. Of all the groups, these were the ones who were found to be the most likely to employ the use of online banking, as well as digital cash management tools.
In comparison, around 12% of clientele were found to be older individuals and retirees. This group is the least likely to use online financial management tools and don’t have very much interest in accessing these services digitally.
Digital money-management tools are able to facilitate individuals in difficulty, to avoid wasting money and gain a framework for money management, which may facilitate them to avoid or perhaps reduce the impact a financial crisis could have.
Experian and StepChange Debt Charity will continue to work alongside each other to offer even more insights, building more understanding of ever ongoing challenges, and look upon potential solutions of how clientele can gain higher autonomy of their finances. The charity is close to launching a brand-new online hub to assist individuals with persistent credit card debt.
Although it is not claimed that online tools can solve the nation’s debt problems, they are able to assist, and there is also a potential for an array of new services which can better engage people who are financially insecure.
Seeing as most people who find themselves in debt, are in this situation because of a change in their circumstances, helping those to manage their money and also build financial resilience, means they are much more likely to be in a position where they are able to weather tougher times if and when they occur.
It would also be easy to assume that we are all using digital technology in the same way and at the same consumption rate. However, we’ve discovered that this simply isn’t the case.
FinTech tools are changing the way that many of us are managing our money. However, it is apparent from our findings that a considerable amount of individuals looking for assistance with debt issues, are reluctant to use online financial tools, this will pose interesting challenges for the debt advice society and sector at large.