Is Financial Avoidance Becoming a Norm?

MX’s latest consumer research touches on many topics ranging from financial management, financial apps, and expectations for financial providers. One of the most fascinating finds? Nearly 1 in every 4 consumers are actively avoiding their finances. 

The research shows 22% of consumers agree they avoid checking their finances if possible — while 33% of Gen Z and 28% of Millennials are living in this state of financial avoidance.  

So how can financial providers help consumers better manage their finances when they are avoiding them? Our research shows consumers want more from the financial institutions and fintechs they trust to help them manage their money. And, it starts with building tools that are intuitive and integrated. 

“Consumers are no longer satisfied with a hodgepodge of finance-related apps and disjointed money experiences,” says Jane Barratt, Chief Advocacy Officer and Head of Public Policy, MX. “But simply avoiding their finances is not the best alternative. Financial providers have an obligation and opportunity to help consumers achieve financial strength and lessen the stress of managing money.”

Combatting the Manual Burden of Money

MX’s survey of more than 1,000 U.S. adults found that while financial accounts are the most common method for tracking and managing finances, manual processes aren’t far behind. In fact, 24% of consumers use a spreadsheet or other manual processes to track their finances. 

And, for those tracking their finances through their financial accounts (37%), most consumers are likely only seeing their finances frame by frame. This means they are likely missing the bigger picture in some cases. Most alarmingly, 14% of consumers still say they don’t track their finances at all. 

Why are people turning to spreadsheets and manual processes? The majority say it is easier for them to understand (65%) and gives them better control over their finances (57%). Financial providers have a significant opportunity to lessen this manual burden for consumers by delivering on tools that take these reasons into account — make it easier for them to understand and control their spending. 

Using Consumer-Permissioned Data To Support a Better Experience 

To deliver on consumer needs, financial providers already have the answer at their fingertips — leveraging the data they have about consumers to create more personalized experiences. 

And, consumers are ready to share more data if it will deliver better experiences for them. Fifty-five percent of U.S. consumers agreed they would give their financial provider access to more of their data if they knew it would result in a better experience. 

Check out other key stats from this latest research in the infographic below. And, access the full report today for even more insights.