- Almost half of 18-30 year olds (49%) in the UK, equivalent to 5.4 million people, do not have a savings account
- A further 59% have money left in their current accounts at the end of the month which they could be putting into a savings account or ISA
- Digital banking provider Intelligent Environments urges UK banks and building societies to do more to help young people save by implementing automatic transfers and personalised savings goals features
Almost half of 18-30 year olds in the UK (49%), equivalent to 5.4 million young people, do not have a savings account, despite over half having money left in their current accounts at the end of each month. As a result, the leading financial services software provider is calling on UK banks and building societies to help younger customers save by providing personalised savings goal features and automatically transferring surplus current account credit into a savings account or ISA.
“75% of bank customers we surveyed would like to see such a system introduced,” commented David Webber, Managing Director at Intelligent Environments. “It would give any bank introducing this technology a significant advantage over their rivals. Plus, the good news is the technology needed to automatically transfer money between current and savings accounts could be introduced very quickly.”
By using analytics to predict customers’ spending habits and identify large impending payments, Intelligent Environments believes banks can help their customers save more and ensure there is always a current account buffer to cover unexpected payments. Additionally, banks can predict when a customer’s rent or mortgage payment is due before it takes place, and ensure there are enough funds in their current account.
“As the advent of predictive technology such as Apple’s Siri and Microsoft Cortana becomes an integral part of consumers’ lives, it’s now time for financial services providers to capitalise on this intelligent processing power” added David Webber.
In light of the research findings, Intelligent Environments is urging UK banks and building societies to help young customers better manage their finances and savings by implementing predictive intelligence and adding personalised savings goal features to digital banking apps. This will enable customers to set specific savings goals and timeframes in which to achieve them and then track progress as they save.
This follows a submission by the BBA to the Treasury last month to “Support Savers”, in which ministers were urged to simplify the ISA regime and introduce a new work-based account to encourage millions of employees to build-up a nest egg as they earn.
David Webber explained: “Consumers are more likely to save if they can readily visualise the outcome. By personalising a savings aim and setting it over an achievable timeline, goals become more realistic. It is more compelling to save for the next “Ski Trip” or “New Kitchen” than have it lumped into one generic account.”
In line with this research and campaign, Intelligent Environments and The Digital Banking Club is organised a webinar for financial industry on “Personal Financial Management (PFM): a key weapon in banking loyalty wars?” The discussion explored optimising personal financial management tools and the essential elements for financial services providers.