Credit Mismanagement: Britons demand banks do more to help manage personal credit
• Research shows that almost half (46%) of UK consumers want more help from their bank to manage their credit profile
• One in five Britons plan to take more steps to manage their credit profile in the future
• One in four worried about availability of credit
New research commissioned by Affinion International reveals a concerning picture of Britons’ understanding of credit management. The leading global provider of customer loyalty and engagement products discovered that only 20 per cent of the British public know their credit score, half (49.9%) admitted not knowing what to do if there was an error on their credit report and almost 80% don’t know the length of time that personal information is held on their credit profile.
Alongside the low level of awareness about managing their credit profile, one in four Britons – rising to 40% of 25-34 years olds – are concerned about being able to access credit, despite the economy’s recovery over recent years.
The study, compiled in partnership with research specialists Conlumino, found that while a large majority of Britons (88%) know what a credit profile is and have reasonable understanding of what a credit report is, consumers lack understanding on how best to act on the information to improve their credit status and would greatly value more help and assistance from their bank. This lack of consumer knowledge means usage is infrequent with only 25% of people having looked at their credit report in the last year.
The research reveals there is a considerable appetite from consumers to know more about managing their credit profile. Despite 68% of people surveyed not currently taking any measures to manage their credit profile one in five (20.7%) intend to do more in the future. Almost half (45%) of more than 2,000 people surveyed said it would be helpful to know the steps they can take to manage and improve their credit rating, with 46% thinking their bank should do more to help, rising to 55% amongst 25-44 year olds.
“The results show that Brits want banks to do more to help them understand and improve their credit profile,” said Giles Desforges, Affinion International’s Senior Vice President Northern Europe. “The demand from consumers is clear to see, as nearly half welcome more guidance with understanding different elements of their credit profile. Our company philosophy is all about providing the best tools to empower informed decision making for customers. The research shows there’s a clear opportunity for banks and financial organisations that are prepared to engage and provide more help to their customers. ”
About the research
The report entitled Credit Management & Data Security was compiled using a combination of consumer research, secondary research and market forecasts. Consumer research was based on a survey conducted with a UK nationally representative poll of 2,002 consumers interviewed during August 2014.
About Affinion International
Affinion International, a division of Affinion Group, provides a wide range of protection and lifestyle products that offer value to consumers whilst building additional revenue streams and increased customer-to-brand loyalty and engagement for its partners. The division is made of more than 1,200 employees and offers services in 17 countries throughout Europe, Africa and South America. Over the past 15 years, Affinion International has built an impressive client base that includes 13 of the top 20 EU banks and many of Europe’s premier brands in travel and retail. For more information, visit www.affinioninternational.co.uk
Conlumino is a retail research agency and consulting firm, focusing on all aspects of retailing and consumer behaviour. They work with many of the world’s leading retailers, property firms and those in the financial sector to help them maximize success through developing a thorough understanding of the sector and its likely future performance. They also work with many retail suppliers, from manufacturers to professional services firms.