Digital bank N26 research Irish consumer spending

A new global study published today by digital bank N26 has found that 2020 was set to be a big year for Irish consumers, with 77% of the population (vs 67% globally) saying they had major purchases or life events planned.

However, as new challenges and priorities emerged with the Covid-19 crisis, over 80% here in Ireland were forced to cancel or postpone those plans.

So what were consumers planning? Topping the list of the Irish population was going on a big holiday abroad (37%), followed by buying a new car (24%), starting a new job (23%) closely followed by paying off debts (20%) and moving house (16%).

Digital bank N26- Irish spenders and their habits

The global study, which surveyed a nationally representative sample of 1,005 Irish consumers, showed that Irish people had saved an average of €1896.42 for plans that ended up having to be cancelled or postponed, with an average of €694.49 having been lost as a result of these changes.

Hardest hit were consumers in Belgium who lost €750.27 and the Netherlands €707.29. As a response, the majority (58%) of Irish consumers have now decided to keep the money they saved from cancelled plans in order to spend on the same plans in the future.

For those who are saving money for something else, the most popular plans are home improvements (28%) and paying off debt (23%). Two in five have made a new or unexpected purchase during the Covid-19 crisis (42%), with younger people more likely to do this.

Kelly McConville, Director Growth at N26, commented on the study: “

Our lives have been transformed since the start of the Covid-19 crisis and as major life plans have been cancelled or postponed, it’s left many of us feeling like life has been put on hold.

But as plans and our lives have changed, it’s interesting to see how people have adapted and developed new digital habits.

Particularly the uplift in using the card over cash and a shift towards mobile or online banking. It’s clear that people are starting to realise the benefits and increased flexibility of digital banking, and this is probably why so many are planning to continue these habits post-COVID.”

How Covid-19 has impacted Irish travel plans

The global study conducted by digital bank N26 also asked people about their feelings towards international travel. Nearly two-thirds of Irish consumers were planning to go abroad this year (64%).

However, only 10% of these said those plans were going ahead as scheduled. Why? A staggering 56% said they were worried about foreign travel starting up again.

The top concerns were that it would increase the number of Irish Covid-19 cases (56%), followed by worries for personal health or that of a loved one (44%) and concerns about getting locked down in a foreign country (32%).

As consumer sentiment towards foreign travel shifts, the research showed a clear trend towards people opting for staycations.

69% of the Irish said they were either considering or have already taken a staycation this year, with almost a third (29%) saying this was the first time they had been on this type of holiday.

Fear of travelling abroad and risking getting locked down abroad is the main reason for 52% of those taking a staycation for the first time.

So where are they going? The beach is the favourite destination for a staycation for most countries, with rural and mountainous destinations close runners-up. City breaks, however, are far less likely.

The research also shows that “somewhere rural” is the favourite destination for a staycation (29%) in Ireland, with the beach (25%) and Munster (22%) close runners-up. 19% of the Irish consider going to the mountains as their top destination.

City breaks, however, are less likely with just 16% of those in Ireland planning this kind of trip. 14% have planned a camping trip and 12% a trip to Leinster. 25% are staying in a self-contained or self-catered apartment rather than a hotel to avoid tourists.

Regionally, those in Ulster are most likely to go somewhere rural (36%) while those living in Connacht are least likely (21%).

A generational difference has been noticed, with 44% of the Irish Baby Boomers (55-64 years), 25% of the Silent Generation (65+ years), 29% of Generation X (45-54 years) as well as 27% of the Millenials (25-34-year-olds) saying they are going somewhere rural to avoid people, while 30% of Xennials (35-44 years) and 28% of the Gen Z (18-24 years) have planned a beach holiday.

Half of those, taking a staycation for the first time in Ireland, are doing so to avoid the risk of increasing Covid-19 cases in their home country (50%) or to avoid getting locked down abroad (52%).

A third of those who have gone on staycations before are driving there this year rather than getting public transport (32%).

In response to shifting global attitudes towards travel and how people are spending their money on major life plans, N26 is continuing its call for people to get involved in the world’s largest online banking discussion: the Big Banking Chat.

The global campaign seeks to surface people’s questions, concerns, and bugbears when it comes to their personal finances, and help provide answers and tips so that people can feel confident in managing their finances as we confront this new world reality.

Kelly McConville, Director Growth at N26, further commented on the campaign:

“The shift in consumer behaviour over the past few months in response to the Covid-19 crisis has had a big impact on the way we live, work, and spend our free time and money.

As attitudes continue to evolve, we can’t just watch from the sidelines. Banks – particularly digital banks that consumers are increasingly turning to – have to be agile in the face of change and continue to find better ways to put people back in control of their finances.

Digital bank N26 was built on a philosophy of simplicity, transparency, and accessibility to make lives easier for our customers.

The need for that has never been more clear and it’s exactly why we started, and are continuing, the conversation as part of the Big Banking Chat.”

More about Irish Tech News and Business Showcase here.
FYI the ROI for you is => Irish Tech News now gets over 1.5 million monthly views, and up to 900k monthly unique visitors, from over 160 countries. We have over 860,000 relevant followers on Twitter on our various accounts & were recently described as Ireland’s leading online tech news site and Ireland’s answer to TechCrunch, so we can offer you a good audience!

Since introducing desktop notifications a short time ago, which notify readers directly in their browser of new articles being published, over 50,000 people have now signed up to receive them ensuring they are instantly kept up to date on all our latest content. Desktop notifications offer a unique method of serving content directly to verified readers and bypass the issue of content getting lost in people’s crowded news feeds.

Drop us a line if you want to be featured, guest post, suggest a possible interview or just let us know what you would like to see more of in our future articles. We’re always open to new and interesting suggestions for informative and different articles.

Contact us, by email, twitter or whatever social media works for you and hopefully, we can share your story too and reach our global audience. We are agile, responsive, quick and talented, we look forward to working with you!

If you would like to have your company featured in the Irish Tech News Business Showcase, get in contact with us at [email protected] or on Twitter: @SimonCocking