One in three spend more than they earn
More than a third of Australians are spending more than they earn each month while 45 per cent are uncomfortable with their currently level of spending, Commonwealth Bank (CBA) data revealed.
Figures showed one in three spent more than they earned in four consecutive months in the last 12 months while 56 per cent said they would not have enough savings to handle a temporary loss of income.
A CommBank survey of 1,000 people conducted by independent research company, ACA Research showed 46 per cent believed they were not progressing towards their financial goals, while another survey of 3,000 respondents showed one in three Australian households would not be able to find $500 in an emergency.
In response, the bank said it was conducting experiments with app features including Savings Challenge, which was a comparison of a customer’s current transaction account spending against their average for the prior three months, and Savings Jar, which was a transaction account function that allowed users to set aside money for unexpected events by rounding up daily transactions.
Users would have access to their money in their transaction account as required.
Executive general manager of digital, Pete Steel said 73 per cent of Australians wanted banks to do more to understand their needs while 72 per cent wanted their bank to assist them with their finances.
The two apps were currently being trialled and would be available to select customers in an experimentation version of the bank’s app, called CommBank Lab apps.
AUTHOR
Malavika Santhebennur
Recommended for you
ASIC has launched court proceeding against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
