Banks 'not doing enough' on cost of living, survey suggests

Banks are 'not doing enough' to address the cost-of-living challenges that many consumers face, a new survey has suggested

Nearly a third of consumers say their bank isn't doing enough to support them with the cost of living, according to research from UK-based financial services company Chetwood Financial.

Over half of respondents say they are finding it difficult to save money due to the high cost of living, while a vast majority (70%) are checking their banking apps more regularly as a result of the current economy.

Chetwood surveyed over 2,000 UK adults. The results highlight how important it is for banks and fintechs to support their customers with their personal finances – for example, by launching new money saving tools or budgeting features within their app. Only 44% of respondents say they have visited their high-street bank branch in the past 12 months, further emphasising the importance of getting digital right.

Among the survey's other findings, younger generations appear to be feeling financial stress more keenly: 52% of 18-34-year-olds report feeling overwhelmed by their budgeting and household finances. And more than four in 10 (41%) have already dipped into their life savings to help make ends meet.

Consumers 'generally dissatisfied' with level of support

Andy Mielczarek, CEO and Founder of Chetwood Financial, says: "With inflation still sitting close to 40-year highs and energy costs rising sharply in the UK, Britons are facing some of the most difficult financial circumstances in years. In response to these challenges, many are embracing the digital revolution, seeking new methods to bolster their financial management and spending power. The resulting change in consumer behaviour has been palpable.

"Our research suggests that consumers are generally dissatisfied with the level of support from established banks and their existing providers. In many cases, they are seeking newer alternatives that offer competitive rates, cash incentives and better technology. With more and more bank branches shutting their door each year, the smaller, tech-first brands are impressing most of all. Often, these brands are better equipped than high-street banks to provide tailored guidance, smart solutions and product innovations that help make their customers better off."

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