Young doesn’t mean naive when it comes to managing money

HSBC research reveals that more young Britons (18-24 years old) are aware of their bank balance than any other demographic, with almost 9 out of 10 (88%) claiming that they are able to recall the state of their finances either exactly or to within £100. This age group are also the biggest users of mobile banking apps to stay on top of their finances - dispelling a common view that they are less likely to be on top of their money with 86% checking their balance on their phone.

The online research from YouGov for HSBC suggests a link between customers using mobile apps and PC/laptops for digital banking and financial awareness. After 18-24 years-olds, people aged 55+ are the demographic most likely to recall their bank balance exactly, or within £100 (83%). They are also more likely to use online banking via personal computers to keep track of their money (57%).

The use of digital banking is at an all-time high, with 60% of HSBC UK customers banking digitally in April 2020, an 8% rise on the same period last year. Digital transactions now account for over 90% of all transactions.

George Charalambous, HSBC UK’s Head of Digital Product, said: “There is a clear link between people using digital tools, such as mobile or online banking, and being able to recall their bank balance. Being financially self-aware is the first step to long-term financial fitness.

“The common misconception is that young people bury their head in the sand when it comes to keeping track of their finances, but because they are often more digitally engaged they appear to be more on top of their bank balance. Interestingly, people aged 55 and over are most likely to use online banking via their personal computers, and the group second most likely to be aware of their financial situation.

“Whatever your age, once you’ve got a grasp of the money you’ve got coming in and going out, you can start budgeting and saving – and digital tools can help you do that too.”

Digital banking is best for the everyday

People in the UK have fully embraced technology to help them carry out basic banking activities. Tasks such as paying a bill, or cancelling a standing order, which a few years ago might have necessitated queuing in a banking hall, can now be performed instantly through mobile or online banking.

Upturn in usage of digital banking tools during COVID-19

HSBC UK has seen an increase in digital activity during the COVID-19 crisis, with many people returning to digital banking, or using it for the first time.

• 60% of HSBC UK’s customers were digitally active in April 2020, up 8% year-on-year
• Digital transactions now account for over 90% of all transactions
• The number of online banking customers cancelling a standing order in March increased by 100% from its monthly average
• The number of online banking customers cancelling a Direct Debit in March increased by 70% from its monthly average
• Customers digitally deposited over a third (34%) more cheques every day than the average in April
• Usage of ‘Balance After Bills’ (a tool in the HSBC mobile banking app which allows customer to see their projected account balance after regular bills are taken into account) has increased more than 20% since the lockdown
• Over 75% of HSBC UK’s digitally active customers aged 18-25 use the app monthly

HSBC UK has a dedicated coronavirus hub, which is regularly updated with frequently asked questions and supporting information.

Notes:

1. The research for HSBC was carried out by YouGov between 1st - 2nd April 2020
2. Total sample size was 2057 adults
3. The survey was carried out online
4. The figures have been weighted and are representative of all UK adults (aged 18+)