Author: David Webber
Simplifying digital banking to ease the debt of generation z
According to our latest research, a quarter of 18-24 year olds in the UK are currently in debt. While it’s certainly no secret that young Britons struggle with their finances, it’s clear financial providers need to find new ways of helping to tackle the issue, with 44% of people saying going into debt is one of their biggest causes of stress.
However, our research also reveals there may be a simple solution: a single digital platform approach. Two thirds of respondents say that they would be better able to manage their spending if all their financial activity was available to view in one place.
Making digital banking more simple
Our digital lives are certainly becoming increasingly complex. In fact, according to password management company Dashlane, the average UK consumer has 118 online accounts. People now manage various financial activity online, from current accounts to utility bills. While being able to do so digitally definitely increases visibility, it’s clear that having to manage accounts across so many different digital platforms is overwhelming. It’s time for a new method.
The financial services industry has a key role to play here. By working more closely together, and being more open to sharing information, banks, creditors and debt collection companies can provide their customers with increased visibility and better, more joined-up experiences for customers.
Move over omnichannel banking?
A single digital platform, providing visibility of debt alongside current accounts and bills could make finances easier to manage. It’s not just young customers who would benefit from this approach. Spenders of all ages could benefit from a clear holistic view of their finances, mapping out utility bills, rent or mortgage payments, ongoing loans and debts in one place.
This is why it’s crucial that the industry adopt a new way of thinking when it comes to helping customers with money management. Big data capabilities present incredible opportunities and it’s time we took advantage of them. Now is the time for companies to collaborate, in order to help put Britons back in control of their financial situation and stop consumer debt spiralling further out of control.
We’re all living in the digital age, but what are banks doing to keep up? Read our opinion piece to find out more.