News & Views - Savantor

Spending in the recession

Friday, 16 November 2012

Whilst the UK’s double-dip recession has left many households with little in the way of disposable income it seems to be having other impacts on how we spend and manage our finances. One effect appears to be that people are just avoiding their card bills and bank statements. According to recent Barclays research, the UK is suffering what the bank calls "banxiety" which basically seems to be a fear of bills and statements. In fact, a survey of consumers suggests that 36% of those receiving paper statements and bills are putting off or refusing to open them, and nearly half (45%) are unable to say exactly how much money they have to their name. Apparently 18-to-24-year-olds are the worst offenders, with 55% admitting they are reluctant to open statements. While living in financial denial is never good, it obviously becomes particularly dangerous when it comes to payment cards. Particularly so if you have a card from Zebit who have launched a “prepaid” MasterCard (effectively a short term loan) with a 2012% APR and is encouraging people to go shopping.

The research showed that 30% admitted they have paid for a product or service without knowing if they have enough money or credit to make the payment. Women are slightly more guilty of this than men, with 33% of women having made payment purchase without checking their funds, compared with 28% of men. Given this background one might expect a modest Christmas would be on the cards for many UK households. But research from HSBC suggests the opposite is likely with nearly half of consumers not planning to cut back on their spending at all this festive season and a further 20% estimating a bigger spend this year than last. In fact, only 17% of adults expect to spend less celebrating at the end of 2012 than they did in 2011.

The bank's Christmas Spending Survey indicated that the average consumer intends to spend £526 celebrating Christmas, with £347 set aside for gifts and £179 for food, drink and entertainment. That's only slightly down from 2011, when average spending was £561. While the majority of this spending will be covered by regular income and savings, approximately one in five people anticipate borrowing from typically cards or overdrafts to cover the cost of this festive spend. While 77% of women say they will make attempts at being frugal, just 64% of men say they plan to do so. Men are also slightly more comfortable using a credit card to pay for gifts and food at Christmas, with 15% of men (compared with 11% of women) expecting to use credit and store cards. Hopefully the APR they will pay will be less than the Zebit card.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Issuer and Acquirer Transformation - Assessment and Mobilisation

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with a diverse team from across the bank and actively contribute. I am pleased to say that Savantor was able to deliver on our needs as well as being good people to do business with."

Lars Bostrom, Head of Cards - Nordea - Scandinavia

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Complex Multi-Country Migration

"This complex migration, undertaken simultaneously in Spain and Portugal, has been a complete success. Savantor has provided us with excellent support for over 3 years, both in the original business transformation programme and now this double migration. We value their open and honest approach to business, and of course the expertise that they bring."

Ricardo Gomez, Director, Operations & Technology - WiZink Bank – Spain & Portugal

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Commercial Card Migration

"Execution at its best. We're delighted that this project has been truly outstanding and received an award from 'The Banker'. Savantor provided crucial expertise that helped us keep all our promises in terms of delivery. The scheduling, planning and control regime throughout was excellent."

Chris Mason, Director - Commercial Cards EMEA - Citi - UK

Complex Cards Business Transformation

"This was a major business transformation that required us to build an excellent team made up of internal bank specialists, supported by external card business, technical and operations expertise. Savantor provided specialists from the local market and with international experience to fill a variety of important roles. The Savantor resourcing team are professional, reliable and good people to work with."

Ricardo Gomez, Director - Operations & Technology - WiZink Bank - Spain

Acquirer Specialist Support

"OP-Pohjola Group has used Savantors help in numerous different specialist projects differing from risk assessment to management tool creation to transaction analysis. We have been very satisfied by the quality of the service provided by Savantor's experts."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.