Today, we released the findings from our Q3 2023 Consumer Pulse Report, showing consumer interest in new embedded finance tools to navigate the cost of living crisis. The report, surveying 3,000 consumers in the US and the UK in partnership with Propeller Insights, details how mounting economic concerns are reshaping consumer spending patterns and driving interest in new technologies, including embedded finance solutions such as Accelerated Wage Access.
Recession fears spark reduction in discretionary spending
This report is the second of its kind where we have surveyed consumers to get a pulse check on how they’re adapting to the changing financial landscape. According to the survey, consumers are feeling the crunch as living costs continue to increase.
- 86% of consumers reported being concerned about an impending recession.
- 67% of consumers said they are changing their financial habits in order to cut spending.
- 67% reported that they are specifically reducing their discretionary spending, with that number highest amongst individuals above 65 years old, with 83% of them reducing discretionary spending.
Consumers are open to new financial technology
Embedded finance solutions that offer accelerated access to wages are also striking a chord with consumers. Over two-thirds of consumers (66%) said that if presented with a choice, they would sacrifice something important to them to get paid daily– the most popular being a year of takeout food (29%), social media access (27%), or haircuts (25%). The appeal for daily access to wages was highest in the US, with 21% of consumers saying they would give up an entire week of PTO, compared with 15% in the UK.
Amid rising concerns about the economy, consumers are ready for Generative AI tools. Our report reveals that 36% of consumers said they’d be interested in using Generative AI to manage their finances, with that number booming to over 50% for individuals younger than 50 years old. According to the report, consumers are most interested in using Generative AI to help them with their financial planning, including budgeting, investing and how to increase their savings.
The future of consumer finance
When it comes to brand loyalty, consumers reported the importance of the customer experience. Brand loyalty relies heavily on ensuring a seamless customer journey, from the start of the shopping experience to the checkout and payment process. Eighty-five percent of consumers think the checkout or payment experience is more important than a company’s corporate values or social positions when purchasing from a brand.
Read the full report here.
