Research Reveals Consumer Finances Stabilising but Highlights Need for Finance Providers to Prepare for Next Phase
The latest research from global information and insights provider TransUnion suggests that consumers who have weathered the initial shock of COVID-19 are feeling more financially stable, but those experiencing financial difficulties face some challenging months ahead.
In its latest report, which marks almost six months since UK lockdown and social distancing measures were first imposed, TransUnion’s Financial Hardship Study* found the number of households negatively impacted financially at its lowest (53%) since March, and those not yet impacted but expecting to be in future (13%) at less than half of what it was when lockdown began (28%). However, the number impacted that are struggling to pay bills remains almost as high as it was at the start of the pandemic (70% in March versus 68% at the end of August) with utility bills (39%), credit card payments (37%) and rent (27%) remaining the areas of most concern. Of those expecting to be unable to pay, almost half (47%) think that will happen within one to three months.
TransUnion’s TrueVision is one of the tools that finance providers are turning to as they seek a nuanced and comprehensive picture of the individual’s financial status. Incorporating up to 72 months of account history, it uses extensive data attributes and proprietary algorithms to create a powerful picture that provides insights into the consumer’s spending trends and behaviour, as well as their ability to absorb financial shock.
Source: TransUnion UK Press Release