New research from GoCardless, a provider of direct bank payments, reveals high potential demand for Variable Recurring Payments (VRPs) as UK consumers clamour for better ways to manage their money, with convenience and ease at the top of their wish lists.
Half of consumers say they would use new technology that automatically moves their money from one account to another with a higher interest rate (53 per cent) and to pay their debts (50 per cent). Many would appreciate quick and easy tools: over a quarter (28 per cent) indicate they are “too busy” and often lack the time to think about budgeting or managing their money.
The findings come just weeks before the CMA’s ‘sweeping’ deadline for VRPs, with banks like NatWest already gearing up for the industry-wide rollout. The desire to gain greater control over their finances also comes as consumers are being stung by the worst rate of inflation in 40 years.
Against this backdrop, the research reveals that 57 per cent are struggling to save due to the rising cost of living, with more than four in 10 (45 per cent) Brits planning on experimenting with new ways to save or make money over the next 12 months. Younger consumers may require even more support: 30 per cent of Gen Z and Millennials say they find it difficult to budget and manage their money every month, rising to 34 per cent of women in these cohorts.
Duncan Barrigan, Chief Product Officer and Chief Growth Officer at GoCardless, said: “With the cost of living crisis continuing to put the squeeze on personal finances, VRPs couldn’t come soon enough. The research shows clear demand for easy-to-use technology that automatically helps people clear their debts and build their savings. This will be a lot easier after VRPs are introduced. We hope everyone in the financial ecosystem recognises the consumer need for this new technology, and continues to work towards a fast rollout of VRPs.”