NEWS
Cost of living crisis pushes debts to highest ever level and increases adoption of online banking
The reliance on credit during the cost-of-living crisis for millions of people across the UK and Europe has been laid bare in a new report , with nearly a quarter of adults ( 23 %) admitting their debt levels have never been so high .
The report from CRIF , European provider of digital transformation services , shows that one in four ( 23 %) Europeans state the cost-of-living crisis has increased their debt levels to the highest they ’ ve ever been . In the UK specifically , similar proportions of young ( 18 – 34 ) and middle-aged adults ( 35 – 54 ) said their level of personal debt was higher than ever ( 26 % and 23 % respectively ). Overall , a fifth ( 20 %) of young and middle-aged adults in the UK are now borrowing more money , saying it has become a normal part of helping them get by .
However , particularly among young adults , Europe has seen significant adoption of digital banking services to better manage their finances . More than half ( 56 %) of young adults in Europe said they would now manage their finances online or through an app more than they previously did .
Crucially , more than four in ten ( 45 %) young Brits said they would be happy to share more of their financial data – for example via open banking – if it helped them keep track of spending , save more easily and help with credit or loans applications .
Sara Costantini , Regional Director for the UK & Ireland at CRIF said : “ With many facing higher levels of debt than they ’ ve ever experienced before , Europeans are embracing innovations in digital banking to better understand and manage their finances , with younger adults in the UK among those leading the way .”
Demand for subscriptions defies cost of living crisis with consumers reluctant to cancel
Despite rising living costs , consumers are reluctant to cancel their subscriptions , instead opting to upgrade or pause contracts , reveals research from Minna Technologies .
Minna Technologies ’, the global subscription management service embedded in banking and fintech apps , inaugural Subscription Economy : Business Barometer report shows that consumers remain much more likely to upgrade their subscriptions rather than cancel . Previous research indicates that 86 % of subscribers would consider accepting a new offer on their subscriptions rather than cancelling .
Each month , 25 % of users change their subscription with two thirds ( 65 %) of subscribers opting for account upgrades .
The research also shows that almost three quarters ( 72 %) of users would rather pause their subscriptions than cancel . Currently , 61 % of subscription companies offer users this option while a further third ( 33 %) plan to introduce this functionality in the next 12 months . Minna Technologies explains that although upgrades are the most common change , providers recognise that the flexibility of being able to pause accounts is becoming increasingly important amidst rising living costs .
This subscription flexibility is also reflected in the half of subscription companies planning to invest in AI technology or API integrations with partners in a bid to maximise the opportunity for growth , gain a competitive edge and attract and retain subscribers .
Amanda Mesler , Chair and CEO of Minna Technologies , says : “ As subscription businesses face global macroeconomic challenges and evolving subscriber behaviour , demands and regulations , the ability to constantly adapt to the ever-changing landscape is vital .” www . intelligentfin . tech
11