Consumer Duty Statistics

46% of people using credit cards who paid a late payment fee had the charge refunded

Why not?

Use Moneyhub to invite those people who use credit cards who also incur late payment fees to connect their bank and other credit card accounts to access our ‘best day to pay’ insight?

How it works: Moneyhub’s categorisation engine and transaction analysis identify the day (or days) on which a user is most likely to be able to pay, based on available cash flow.

Better outcomes: Time the collection of direct debits to coincide with the best day to pay, or trigger a nudge reminder just at the right time, perhaps with an account to account payment attached?

47% of those people using credit cards who pay interest on their cards also held money in savings or investments that exceeded the outstanding balance on the card

Why not?

Use Moneyhub to identify those people who use credit cards who also have adequate emergency funds and spare savings and encourage them to repay their credit card?

How it works: Moneyhub’s income detection identifies people with sufficient savings (i.e. 3 months’ net salary). Moneyhub can also identify both the cost of credit and the value of interest earned on savings.

Better outcomes: Helping consumers understand the real cost of servicing debt can increase financial resilience by helping them repay their debts faster. Firms can avoid the risk of harm from product misuse by demonstrating that short term credit is only ever used for short term borrowing.

People using Moneyhub typically have 1.43 months net income held in instant access savings

Why not?

Use Moneyhub to create and track progress toward an Emergency Cash Fund?

How it works: Moneyhub’s transaction analysis distinguishes between discretionary and non-discretionary spending to power our Emergency Cash Builder feature. Consumers can set a goal to identify and set aside cash that can be saved and track progress towards the goal.

Better outcomes: Because Moneyhub ‘sits above’ a consumer’s bank and savings accounts to detect total income and expenditure in real time it can help those consumers with low, volatile, or unusual incomes to set aside money when it is right to do so. A nudge, with a request to sweep funds embedded in it, puts the user in control compared to setting up a regular direct debit or standing order.

29% of instant access savings accounts with a balance above £10,000 did not have a single withdrawal over a two year period

Why not?

Use Moneyhub to identify consumers for whom longer term investing might be appropriate and invite them for a review?

How it works: Moneyhub’s Categorisation Engine, Affordability Dashboard and Nudges provide a powerful ‘always-on’ financial CRM system. Insights about a consumers income, expenditure, assets and liabilities power a personalised ‘health check’ or ‘financial MOT’ as the basis for onward journeys.

Better outcomes: Using your customer’s own data can help them understand when, and why, it might be right for them to consider alternative investments to protect their savings from being eroded by inflation. Moneyhub’s data can demonstrate you’ve correctly assessed eligibility and suitability for a range of saving and investment products.

11% of people using Moneyhub had a direct debit or standing order reversed due to insufficient funds in their account

Of those who had a payment reversed:
68% did not have an arranged overdraft
58% had money in savings accounts that could have prevented the reversal

Why not?

Use Moneyhub to embed new product offers or fee generating services in existing customer journeys?

How it works: Moneyhub’s regular transaction analysis identifies upcoming payments and, based on forecast cashflow, predicts the consumer’s ability to cover a direct debit. Overlay our affordability check to see if they’re good for credit, or check for alternative sources of funds in other accounts or even other banks.

Better outcomes: Offering solutions to people who might struggle, either through hardship or oversight, helps consumers avoid penalty charges and pay for the things they need. Build trust in your brand by suggesting your customer reschedule their direct debits, or offer credit at the point it’s needed, or develop new service fees such as an ‘emergency, account-to-account transfer’ for which you might charge a fee.

25% of BNPL users over a 2 month period also spent more than 30 days overdrawn in excess of 90% of their agreed overdraft limit

Of these users, their spending on BNPL repayments was, on average, 12% of total expenditure

Why not?

Use Moneyhub to help people with multiple lines of credit pay the right amount at the right time to avoid unnecessary fees and charges?

How it works: Moneyhub detects when BNPL repayments are due and can issue a ‘nudge’ reminder in advance. Embedding an ‘account to account payment’ instruction in the nudge means the consumer can make the payment there and then.

Better outcomes: Helping your customers avoid unnecessary fees and charges is good for consumers, good for lenders and provides evidence to the FCA that you’ve embedded data driven outcomes in your business. Money saved can be put to good use, for example opening a savings account to increase resilience.