Are Consumers Ready to Trust AI?
September 27, 2024 | 2 min read
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The COVID-19 pandemic has left the nation in shock as government officials take action to limit travel, enforce bar and restaurant closures, and ban large gatherings of people. At a time when we’re all taking precautionary measures towards recovery, most people are feeling the economic effects. This attempt to flatten the curve by limiting the virus from spreading is leaving many Americans without jobs and unable to make ends meet financially. According to the American Payroll Association, today, more than 70% of Americans live paycheck to paycheck. Additionally, Bankrate reports that 3 in 10 have no emergency savings at all.
As people start to prioritize their savings and reassess their spending, we’re seeing a spike in digital trends. At a time when people are unable to visit physical branch locations, digital is the only alternative to keep them in the know about their finances. MX data shows a 50% increase in digital engagement with mobile banking apps since December. This makes sense considering banking is one of the most important parts of people’s lives, and perhaps, even more so right now.
MX survey data shows more than 70% of people say it's important to put money away for a rainy day or for unexpected expenses; however, fewer than half put away more than 10% of their monthly income. Even amongst Americans who do budget, more than 50% attribute going over their budget to monthly living expenses (e.g. mortgage, rent, utilities or auto loans), with 1 in 4 exceeding their budget primarily on entertainment and luxury items.
What’s more, our research shows, less than 20% of Millennials and 25% of Baby Boomers say they typically stay within their budget. And a staggering 50%of people attribute insufficient income as the single biggest impediment to increasing their savings, while 30% cite essential living expenses. There’s no denying that budgeting and keeping track of finances can be hard, but it’s surprising to see that nearly 60% of people say that their primary financial institution doesn't help them become financially stronger.
With things continuing to change, as we adjust to this new normal, it’s more important than ever before to have a clear plan for how to manage your finances and make the most of your money.
Regardless of where you are in your financial life, here are a few things you can do to work through the current crisis and set yourself up for better financial success in the future.
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