One in four Brits financially vulnerable amid cost-of-living crisis
Nearly a quarter of Brits are financially vulnerable, of which 20 per cent have already missed a monthly mortgage or rent payment, new research has found.
A survey from open banking firm Tink found that 23 per cent of respondents said their income no longer covers their essential spending. Of these, 56 per cent said the situation will worsen as they expect their discretionary income to fall over the next 12 months.
Meanwhile, 43 per cent of this group, identified as financially vulnerable, said they would like to learn more about managing their finances, while 58 per cent believe banks should make financial services more universally accessible.
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And 51 per cent think banks should provide financial support to customers during the cost-of-living crisis.
Furthermore, 45 per cent of those deemed financially vulnerable would switch to another bank for a better deal. 37 per cent would switch if another bank provided them with the financial support they needed at this time.
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“It is clear there is an appetite for more support from banks amongst those experiencing financial distress,” said Tasha Chouhan, UK & IE banking lead at Tink.
“Open banking has a vital role to play here – with data driven financial services giving financial institutions an opportunity to identify struggling customers and provide tailored support and interventions to assist them.
“Not only can this make a meaningful difference to people who are bearing the brunt of the cost-of-living crisis, it also helps financial institutions to meet enhanced regulatory requirements around protection of financially vulnerable customers.”
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