Bank Customers Are Managing Inflation Without Bank Tools

As customers adapt to higher prices, many are managing inflation without relying on banks’ personal financial management tools for support, according to a survey from JD Power.

The new survey found that the number of US bank customers who are financially healthy has remained steady at 31%, while 45% of customers fall into the vulnerable category.

Meanwhile, overall concern about inflation has declined, For the third consecutive month. fewer bank customers said that the cost of goods is outpacing their income.

In addition, 66% of customers reported they are struggling to keep up with the costs of goods, which is the lowest level this calendar year by far.

According to JD Power, this suggests that customers are finding ways to cope with higher prices. However, they are doing so without relying on banks’ personal financial management tools, as many don’t find them particularly useful.

Only 40% of customers said that they completely understand the data presented to them in their bank’s personal financial management tool. This leaves an interpretation gap for more than half of users, which widens as financial health status declines.

When asked specifically if personal financial management tools helped teach them about their money management behaviors, only 29% said these tools helped them completely understand their spending habits. This figure drops to 19% among vulnerable customers.

Customers also find these tools too passive, with only 39% saying their bank’s management service prompts them with advice to make an immediate change to their financial activity to improve their situation. Additionally, only 29% reported that the tools took action on their behalf, such as transferring money into their savings or setting up a proposed budget.