A survey conducted by the Current Account Switch Service has found that the cost of living continues to impact the financial decisions of UK consumers, with dining out the most popular cutback amid the crisis.
The survey of over 2,000 participants revealed other major areas of changes to spending habits as: delaying big purchases (48%), reduced spending on clothes (44%) and holidays (43%) and switching from shopping at a preferred supermarket (38%).
The findings form part of a trend that found that almost three quarters (73%) of consumers now base the decision of switching to a new product or service on price benefits, largely outweighing the decision to change because of convenience (37%).
The search for improved value is being mirrored in the personal finance space with just under half of those surveyed (45%) admitting they would change their current account, should there be a financial incentive available from another provider. A number of banks and building societies offer a variety of rewards to incentivise consumers to switch, including deals on financial products or cashback and the data showed that over half (51%) of consumers would change their provider if they were offered an instant cash reward.
When looking at current accounts, Gen Z (age 20-26) were found to be the age group most likely to switch providers after conducting thorough research and sourcing better quality. However, it was their millennial counterparts that were noticeably more likely to have their decision to switch swayed by the offer of an instant cash reward.
The Current Account Switch Service helps people to change their bank account easily. Its guarantee means a new bank will switch payments and transfer a balance, and an old bank will take care of closing the old account. Over 9 million current accounts have been switched so far and nearly 50 banks and building societies are already part of the service.
It is not just current accounts that the British public have been considering switching. Despite ongoing changes to the property market, the poll found that more than a quarter (27%) of consumers would like to change their house as a priority in a wider list of lifestyle aspects. Unlike with current accounts, those looking to move to pastures anew cited that a change of personal circumstances would kickstart their moving process (44%), instead of cheaper prices or fees (35%).
However, the results show that consumers are far more willing to make serious changes like this than they are minor lifestyle changes, such as changing their hair. In fact, almost a quarter (23%) of people shared that they had held on to their hairstyle for too long, with the comfort blanket of familiarity being the reason that over half (52%) hadn’t braved a new style.
John Dentry, product owner at Pay.UK, commented: “The cost-of-living crisis is showing a change in how consumers are managing their money, and it’s not surprising to see that cash incentives being offered by a number of banks and building societies are prompting them to kickstart the switch to a new current account provider.
Through the Current Account Switch Service, people are able to benefit from a service that’s free to use and handles their move from one account provider to another in seven days and is guaranteed. This takes the stress out of switching and means people could be benefiting from these switching bonuses as well as improved online banking services and tools that help them better track their spending at a time when it matters most.”
