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
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
Those large AFSLs are among the groups experiencing the most adviser growth, indicating they are ready to expand following a period of transition and stabilisation after the Hayne royal commission.
The industry can expect to see more partnerships in the retirement income space in the future, enabling firms to progress their innovation, according to a panel.
