Research commissioned by UBank uncovers almost half of Australians regularly dip into their savings, even when they have a clear savings goal.
UBank, Australia’s leading digital-only bank, has today released research revealing that almost half of Australians dip into their savings regularly, despite having a sizable savings goal they’re working towards.
The research found that 48% of Australians say that they often pull money from their savings account, with 11% of people doing so weekly.
Only 1 in 5 admit to dipping into their savings for an emergency.
The latest data uncovers an emerging trend when it comes to the savings habits of Australia as the country moves into what is traditionally one of the highest spending periods of the year – Christmas.
The tendency to double dip isn’t from lack of having a concrete long-term goal with the research finding 62% of Aussies are saving for big ticket items like an overseas holiday or a new car. And 3/4 of these people are among those who dip into their savings weekly.
Despite these big ambitions, only 11% of Australians have a strict budget in place.
“We are heading into a time of year that sees increased financial pressures for many. From gifts to holidays to hosting Christmas get togethers, Australians are challenged with opening their pockets more than ever. For all those prone to double dipping, we are encouraging people not to lose sight of their long-term financial goals,” said Lee Hatton, CEO at UBank.
“We need to make the process simpler and easier for people no matter what you’re saving for, whether you are buying your first home or planning on taking a holiday overseas. It all starts with the tools available when you’re trying to save”, said Hatton.
The research also found that 69% of Australians have at least 1 credit card with an average debt of $3,272.
“Our focus is on disrupting traditional banking and liberating the experience for our customers, arming them with the tools they need to keep on track and achieve their future savings goals”, explained Hatton.
“With a new look banking app, consistent low rates and no fees, we want to encourage people to regain control so they can enjoy more financial freedom.”
This week, UBank launches a new look iOS app with a streamlined look and feel and new features including tools to track your savings, the ability to save your favourite transactions and more easily identify merchants you’ve shopped with.
This update will also lay the foundation for UBank to fast track new solutions to consumers in the future.
In July this year, UBank revealed a first-of-its-kind neuromarketing experiment. It was commissioned in conjunction with Dr Phil Harris, a neuroscience expert at Nuro Pty Ltd and honorary fellow at the University of Melbourne, to understand what prompts Australians to save.
The insights gained from this experiment, as well as the data released today, are helping shape an AI-led savings application slated for release early next year.
This new technology, that UBank believes to be an Australian first, will help customers manage their daily spending habits in real time to help them achieve their goals.
Research is from a June 2017 report conducted on behalf of UBank by Galaxy research with more than 1,000 Australians.