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The Current State of Consumer Finances

August 24, 2022 | 0 min read

We're not shocking anyone by drawing attention to the increased financial stress nationwide. Household debt recently topped $16 trillion, and inflation rates are rising. It's no wonder 47% of consumers agree that money is their primary source of stress, and only 46% of consumers agree that they feel confident about their financial future.

Sadly, it's not just debt and inflation causing financial stress, but also neglected savings and shaky retirement plans. So what can financial institutions and fintechs, do to help? New research from MX gives valuable insights into the current state of consumer finances

Forty percent of consumers surveyed believe their current financial situation has changed for the worse due to rising costs compared to last year. Half of the respondents also say they are saving less money today, while 32% say the amount of debt they owe has increased. Across generations, here’s the breakdown:

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In the face of today’s financial situation, less than half of respondents (46%)  agree that they feel confident about their financial future. At the same time, 50% of respondents agree that thinking about money makes them anxious. And, nearly half (47%) agree that money is their primary source of stress. 

Financial institutions and fintechs have an opportunity to support consumers during challenging times by offering personalized recommendations, insights, and products. In fact, our previous research showed that 70% of respondents expect their financial services providers to give them personalized notifications and insights. At the same time, 63% want their financial services providers to proactively help them better manage their finances. 

Empowering financial wellness could not only help alleviate the stress and anxiety many consumers feel about money, but it can increase customer satisfaction and loyalty — creating positive outcomes for both consumers and businesses. Financial providers that adopt principles of Open Finance can make a real difference in the financial health of their consumers and ultimately, drive brand loyalty.

 

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Consumer Money Matters: Debt on the Rise, Savings on the Decline

Read the full report based on responses from 1,000 American adults that highlights consumer money habits and behaviors, including financial stress, spending and saving, and how they leverage mobile banking apps.