January 26th, 2017 | Andrew Hagger | News

Research from Equifax, the consumer and business insights expert, reveals that 90% of Brits have not heard of the Open Banking initiative, with 45% of respondents then going on to say that they are not likely to use Open Banking when it becomes available.

When asked about sharing personal data through Open Banking, 60% said they would not consent to this. Consumers’ concerns about data being shared included security (67%), and that third parties would be able to contact them (62%).

25-34 year olds are most accepting of the scheme, with 41% stating they are likely to use Open Banking (compared to 27% nationally). In this age group, 35% are also likely to consent to their personal data being shared (compared to 24% nationally).

The research found a lack of understanding when it comes to declaring information, with 43% stating they were not aware that the data they share with banks (e.g. if they have a mortgage or require a loan) can have a direct impact on the products that banks offer to them.

Respondents of the survey do however recognise the positives of Open Banking and would find the following tools important if they were made available through the initiative:

• The ability to better monitor across their bank accounts to help protect against fraud (64%)
• The ability to compare current accounts offerings from different banks (53%)
• The ability to better monitor their spending or debt and see accounts all in one place (51%)
• The ability to access lenders offering better terms for financial products (50%)

Jake Ranson, Banking & Financial Institutions Director at Equifax UK, said: “The implementation of Open Banking is quickly progressing and the start of this year will see personal customer transaction data available on a read-only basis. There is not much time till the Open Banking Standard’s full scope, including business, customer and transactional data is complete.

“It’s concerning that such a high number of the population are unaware of Open Banking, something the industry needs to remedy for all parties to reap the full benefits.  Not only will the initiative transform the customer banking experience by enabling consumers to compare and save on current accounts, it will also help them look for mortgages more easily and access better terms for loans.

“More needs to be done to educate customers of how they can personally gain from Open Banking. By working with customers to help them better understand how it works, banks can help their customers realise the advantages, especially when searching for the most suitable financial products for their individual needs.”

January 26th, 2017 | Andrew Hagger | News

The latest figures for the Current Account Switch Service published this week show that over 3.5m (3,520,190) successful switches have taken place since the service launched in 2013.

During the last 12 months (1 January 2016 to 31 December 2016), a total of 1.01 million switches were completed, with 208,387 switches recorded in the last quarter alone (October – December 2016)

And, following the launch of a new multi-million pound media campaign, November 2016 saw awareness levels of the Current Account Switch Service reach a record high of 78 per cent –representing an increase of 20 percentage points since launch.

The final quarter of 2016 also saw Bacs appoint Jo Kenrick as the first independent chair of the Current Account Switch Service Executive Committee. The move fulfilled one of the undertakings set out by the Competition and Markets Authority (CMA), following its investigation into the personal current account market.

January 26th, 2017 | Andrew Hagger | News

New research by Onbuy.com/gb has analysed data conducted by AXA Insurance to establish which cities are most at risk of debt in 2017 – with Brighton,Cardiff and Newcastle struggling the most.

Onbuy.com/gb looked to assess and evaluate how long cities will take to repay their debts – with Belfast taking the longest at 6.5 weeks and Cardiff taking the least amount of time at 4.8 weeks.

A spokesperson from StepChange Debt Charity exclusively told Onbuy: The first half of 2016 was the busiest six months we have ever seen at StepChange Debt Charity and more than 300,000 people contacted us for debt advice. Almost 60,000 of those people came to us in January, which is always our busiest time.

If someone is struggling with debt, it’s important that they first write down everything they owe and to whom. Next, they should look at everything they have coming in and going out and draw up a realistic budget that they’re able to keep to. Lastly, we would urge anyone who is worried about their debts to take free, independent debt advice as soon as they can.”

January 16th, 2017 | Andrew Hagger | News

By Emma Huntington, Managing Director of Zurich FutureYou

1. Keep on track by getting organised

With so many bills to pay each month, it can be stressful keeping up with how much is coming in and out of your account. You can keep up-to-date by creating a spreadsheet. Having a document that lists everything in one place will also help you to spot where you can make cutbacks. If you’re unsure about how to get started then there are many tools available online to help.

2. Save your money and cash in your loyalty points

Most retailers have loyalty schemes to reward customers and keep them coming back to stores. You can collect points when you buy in-store, which you can then use as a discount when you purchase again. Most businesses offer the scheme, from supermarkets to high street coffee shops, and making use of these can make a real difference to what’s left in your back pocket.

3. Keep on-the-ball with your direct debits

Do you monitor your account and direct debit outgoings? If not, you’re not alone. Millions wrongly let money drip from their bank accounts for things they don’t really want, such as an unused gym membership. Make sure you’re keeping track and cancelling subscriptions or membership you no longer want or use.

4. Make the most of free activities

Going out with family and friends can often drain your bank balance, but there’s lots of free activities to do all over the country, from museums to park runs to going to a gallery. Try and encourage your friends to also save by offering to host a dinner party that you can alternate between the groups. To make it more of a challenge you could set a budget for the dinner too.

5. Make the most of tax efficient savings

Saving for the long term, can appear daunting, , but if you don’t get on top of it now, you could be missing out on free money as the government essentially gives you money every time you pay in. For example, if you’re 30 and start saving the equivalent of just £10 a week more into your pension now, by the time you’re 65 you’ll have £48,400 more stashed away (equivalent to £20,400 after inflation) – and that’s before you factor in any added employer contribution you unlock. In addition, each year we also all have over £15,000 worth of tax free savings capacity in ISAs which can often offer attractive returns

January 16th, 2017 | Andrew Hagger | News

A quarter of all card transactions are now made via contactless, new figures from The UK Cards Association show.

325 million purchases were made using contactless debit and credit cards in November 2016, accounting for 25 per cent of all card payments in the month.

The rise in contactless payments led to a record £2.9 billion being spent using the technology in November. This is an increase of 184 per cent from a year ago when contactless spending passed £1 billion in a month for the first time.

There are now 101.8 million contactless debit and credit cards in circulation in the UK. Nine in 10 (88 per cent) contactless transactions are made using a debit card, a higher proportion than for card payments overall (78 per cent).

Richard Koch, Head of Policy at The UK Cards Association, said:

“With 125 taps every second in the UK, it’s clear that people are opting for contactless when they are at the till. No longer is it just for the lunchtime sandwich, consumers are using their contactless cards wherever they go – for the grocery shop, in clothes stores, and, increasingly, for the commute too.”

The one in four milestone comes just three months after contactless reached a fifth of card transactions in August. In November 2015, 11 per cent of card transactions were contactless.

The average contactless transaction was £8.95 in November, up from £8.03 a year ago.

January 16th, 2017 | Andrew Hagger | News

The remortgaging rush is expected to continue in 2017, with almost a third (31%) of eligible homeowners planning to cash in on low interest rates. One in four of those plan to act now and remortgage in January. The potential savings they could be making, however, are being underestimated by nearly half, according to a new report from TSB.

According to the survey of 2,000 homeowners, the average saving they expected to make from remortgaging their property was estimated at £49 a month. This compares with an actual average of £96 per month, or £2,300 across the life of a two-year fixed term on a £100,000 mortgage.

A third of people are planning to remortgage in 2017, with the majority (88%) doing so to free up monthly income, lock in at a fixed rate to better manage their money, or take advantage of the low interest rate environment.

Ian Ramsden, Director of Mortgages at TSB, said “Mortgage payments are often the biggest outgoing for many households. By remortgaging, homeowners stand to save up to £96 per month on average, which can make a huge difference to family finances. It could mean being able to afford a family holiday, carry out much needed home renovations, or simply help ease the pressures on household finances each month.”

TSB, which has witnessed a 27.5 per cent increase in remortgage applications in 2016 compared to 2015, has launched its Stay Nation Britain report to explore the outlook for remortgaging in 2017.

January 12th, 2017 | Andrew Hagger | News

Forty per cent of UK savers have said they each plan to put aside more than £2,500 in 2017, research carried out by Charter Savings Bank has discovered.

The research found that those planning to put money away hope to save an average of £228 every month, a total of £2,736 over the course of the year.

The top three reasons people gave for putting money aside were for a holiday (18%), a deposit towards a new home (10%) and saving for retirement (9%).

A quarter of people said they were so committed to reaching their target that they planned to take on extra work to help them achieve their monthly target.

Paul Whitlock, Charter Savings Bank’s Director of Savings, said: “It’s encouraging that two-fifths of the UK adult population have a savings goal for 2017, but the fact remains that the majority have absolutely no target in mind.

“No matter how large or small, putting a target in place can be a huge motivation when it comes to regularly putting money aside. Knowing what you want to save for will also help determine the most appropriate type of savings account for your needs.”

January 12th, 2017 | Andrew Hagger | News

Nearly 34 million people in Britain (66% of adults) are planning overseas holiday escapes during 2017, according to new findings from Sainsbury’s Travel Insurance & Travel Money. The figures are almost identical to last year (67%), revealing a resilience in the overseas holiday market despite a significant fall in the value of sterling against the US dollar, euro and other popular currencies over the past year which increases the cost of holiday spending money for British tourists.

Three in four adults (75%) are planning a holiday in the UK in 2017 – the same figure as last year.

Twelve million ‘early bookers’, nearly one in four (23%) of those intending to book a holiday in the UK or abroad, planned to book their main holiday by the end of 2016. Another one in eight (12%) intends to book during January 2017.

Almost twice as many holidaymakers are confident that they will book independently, going direct to their chosen airline and accommodation providers, compared to those who say they will book through a travel agent (23% against 12%), the remainder being unsure as yet.

However, the findings reveal that many holidaymakers will leave their purchase of travel insurance until late in the day. Six per cent of holidaymakers say they will buy their travel insurance within the last week before going on holiday, a further one per cent will leave it until the day of departure, and thirteen per cent will buy it at some stage between booking the trip and the week before they go on holiday. Even more worryingly, almost one in five (18%) say they don’t intend to have travel insurance cover for their trip.

Sainsbury’s Bank is warning that most policies have some cancellation cover which starts on the date you purchase the cover rather than the date of travel, so a significant number of people who choose not to  buy cover when they book their trip will not be covered should they need to cancel their trip in the interim.

Alan Sanderson from Sainsbury’s Bank said:  “Whilst lots of holiday makers are early bookers who like to plan ahead so they have something to look forward to, our research shows that many of them don’t pay the same attention when it comes to travel insurance. Also if you’re booking independently rather than through a travel agent, make sure your policy provides good quality independent traveller cover as you may not benefit from protection under the ATOL scheme.”

Those planning on booking a holiday in 2017 say they will spend an average of £816 per person on the cost of the holiday alone, before add-ons and spending money.

Many holidaymakers are cost-conscious about their holiday. Seventeen per cent say they are worried about the costs but will go ahead anyway, and 16% are specifically choosing a UK holiday to keep the costs down. A further 15% intend to stick to a strict budget whilst away and 14% will go on the most budget-friendly holiday they can find.

January 12th, 2017 | Andrew Hagger | News

New research from Gocompare.com Money has found that, on average, people now manage over 30 accounts across all aspects of their lives, from online banking and shopping, to gym memberships and subscriptions for home entertainment.  And almost a third of us are stressed out by trying to keep track of them all.

The survey of 2,000 UK adults looked into how people manage their multiple contracts and accounts. Over a third (34%) confessed to using just a handful of passwords to cover everything while 54% said they have to resort to keeping a written note of their passwords and PINs. A quarter admitted to relying on the ‘Forgotten Password’ button to access their accounts.

The survey also revealed that:

• People spend on average two hours a week managing their personal affairs and trying to find and remember account details and passwords;
• 38% of those questioned said they have no system to keep track of their online personal affairs;
• 8% spend over five hours a week managing their contracts and accounts;
• 27% said they feel overwhelmed by the number of accounts and passwords they have to manage;
• 31% said they find it stressful having so many accounts, passwords and contracts;
• 21% of those surveyed felt like they’ve lost track of contracts and accounts;
• 28% likened managing their personal affairs to a full time job.

Matt Sanders, from Gocompare.com, said: “From our research it’s clear that many people feel that they are drowning under the weight of managing their personal and money-related affairs. While the move to online account management has made things like entertainment and banking much more accessible, it has significantly increased the number of accounts we all hold and the log-ins, passwords and monthly payments we have to remember.

“New technology has also presented a range of opportunities for cybercriminals – scamming people out of their personal details and money through increasingly sophisticated means. One in ten people who took part in our survey said that they had an online account hacked, while 12% said they had been a victim of a financial fraud. This means that it’s essential that you make the time to manage both your offline and online accounts to ensure that your personal data is safe and secure.”

Sanders continued: “There are some simple precautions you can take to protect against cybercriminals.  First off, always password or PIN protect your PC, smartphone, laptop and other mobile devices.  Choose strong passwords and PINs and avoid using the same ones for all your accounts and payment cards.  Never use same passwords for social media sites and online banking.  If you feel you must write down your passwords and PINs encrypt them so only you can understand them.  Always log-off when you complete an online transaction.

January 4th, 2017 | Andrew Hagger | News

Timing is everything when it comes to scoring the cheapest prices for flights and hotels in 2017, according to new analysis by travel search engine KAYAK.co.uk. By analysing data based on millions of searches, KAYAK has found that with a little planning, travellers can save huge amounts of money.

Booking and travelling to Brits favourite European and international destinations
The research has found that Brits can save up to 80% on flights to Europe and internationally by booking their airfares at the right time.

The best prices for mid-haul flights can generally be found just one or two months in advance. The biggest savings can be made when flying to the popular destination of Faro in Portugal, where flights are 80% cheaper when booked one month in advance compared to the worst time to book.

And similar savings can be made for other key destinations. Flights to Mallorca can be 75% cheaper when booked two months in advance compared to the worst time and flights to Tenerife and Rome, are 66% and 61% cheaper respectively when booked one month in advance. However, more forward planning is required for certain destinations to get the best deals. When it comes to the increasingly popular destination of Reykjavik for example, five months in advance is the best time to book, which offers savings of up to 61% with an average price of £69.

To get the best savings on flights to the most popular long-haul destinations, the best deals can also be found by waiting until nearer to the departure date. The research  found booking two to four months in advance of the departure date secures the best deals on the majority of destinations in the top 10.

For certain popular international locations huge savings can be made if Brits are prepared to wait until two months before departure to book. Orlando can be as much as 41% cheaper, for Los Angeles travellers can save up to 40% and for Bali the savings can go up to 45%.

Again, there are some exceptions. Holidaymakers aiming to visit New Zealand can secure the best price if they book a trip to Auckland seven months in advance, resulting in savings of up to 58%, when compared to the most expensive booking time.

Weekdays trump weekends as the best days to travel
The analysis of the best days of the week on which to travel answers the ‘when to fly’ question, showing that with a bit of flexibility and the right itinerary, the best flight prices can be secured. On all routes, both long and short, flying out in the middle of the week is the cheapest option. The best departure and return days generally fluctuate between Tuesday and Thursday.

Huge savings can be made – for example, flights to Mallorca departing on a Tuesday with return on Tuesday, can be up to 75% cheaper than those booked to depart on a Saturday with return on Wednesday. It is a similar story for Rome, where the savings are up to 72% for departure on Tuesday, returning Thursday compared to departing and returning on a Saturdays.