Data insights from Moneyhub reveal consumer cash savings fell by 24.5% in the 12 months to August
Tracker showed that savings capacity also fell by 5.5% over the same period, while consumers’ non-discretionary spending needs rose by 2.6%
The latest proprietary insight from Moneyhub, the market-leading data and payments platform’s Financial Wellness Tracker, reveals that consumer cash savings fell by 24.5% in the 12 months to August 2024.
This coincides with an individual’s capacity to save without making any changes to their overall spending behaviour, falling by 5.5% over the same period.
Indeed, consumers' non-discretionary spending needs (e.g. mortgage/rent, utilities and groceries) rose by 2.6% over the last 12 months, likely prompting the drop in their discretionary spend of 1.6% over the year.
Moneyhub’s Financial Wellness tracker, released each month, tracks consumer spending and saving trends across five key indices; savings, savings capacity, spending on essentials, discretionary spending, and debt to income ratios. For the full tracker click here
Commenting on the monthly findings, Samantha Seaton, CEO, Moneyhub, said: “While inflation has dropped and costs are beginning to ease back to a semblance of normality, it’s clear that the cost of living crisis lingers on for a vast swathe of the population. The fact that an individual’s capacity to save without making significant lifestyle changes continues to dwindle is worrying. Especially with many fixed-rate mortgages still to rise by quite some over the next year.
“ Access to cash when it’s most needed provides consumers with a sense of financial security that supports their overall well-being. Businesses that are able to provide their customers a full view of their financial worlds; all incomings, outgoings, savings and investments, in a single place via platforms such as Moneyhub, will help individuals take stock and make more informed choices and build buy-in and loyalty.This consent-driven data will also enable businesses to offer more personalised products and services that ultimately better benefit their customers.”
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Notes to editors
Contacts
Sam Munton - Senior Account Manager, Teamspirit (Moneyhub PR Agency)
M: 07919228097
Ella Ewen - Account Manager, Teamspirit (Moneyhub PR Agency)
M: 07840721297
Sam Peploe - Account Executive, Teamspirit (Moneyhub PR Agency)
M: 07810512006
Methodology
The index tracks the last 12 months rolling average of the data drawn from individuals that use Moneyhub’s platform.
About Moneyhub
Moneyhub is a data, intelligence, and payments company which develops ISO 27001 certified software for Open Banking, Open Finance, and Open Data applications. Its FCA-regulated Open Data platform enables companies to quickly and easily transform data into personalised digital experiences and initiate payments. Its APIs and fully customisable platform provide data aggregation, insights, notification nudges, and payment systems. As a result, clients have the consent-driven data and analytics they need to create super-personalised offers, products, and services. Hundreds of organisations, spanning finance to media and retail, rely on Moneyhub’s award-winning technology.
For more information, please visit www.moneyhub.com.