International Study Finds Irish Are Now The Second Most Financially Stressed After Greeks

Digital bank N26 is releasing the results of an international study aimed at uncovering consumer feelings towards their finances against the economic turmoil caused by COVID-19.

The online study of 10,106 consumers across 13 countries (Europe and US) was carried out by Sapio Research and included 1,002 Irish consumers. It revealed that Irish consumers are now the second most concerned by their financial situation in Europe. 42% of Irish consumers stated finances as a top concern, a close second only to their own health (43%).

The study showed that financial anxiety was higher only in Greece with 56% of Greek consumers stating finances as their major concern. The countries with the lowest levels of financial anxiety at present are Germany (31%) and Italy (30%).

The study reported that as many as 73% of Irish consumers also feel sad, overwhelmed, nervous, worried, under pressure about their finances. This is in stark contrast to 16% who would use adjectives like “happy”, “relieved” or “assured” to describe their feelings towards their financial situation. The survey highlighted that the 45-54 age bracket are the most concerned about finances 51%, versus 30% of 18-24-year-olds.

Today, N26 is launching The Big Banking Chat, an open discussion online where people can ask their banking questions, get answers and share tips and advice. Digital bank, N26, headquartered in Germany with more than 100,000 Irish customers has decided to run this initiative because of how frustrated people are feeling towards their bank for not using simple language and answering simple banking questions.

In view of the current climate of economic concern, N26 feels traditional banks have forgotten to put customers first by truly offering guidance and transparency. As an example, on average Irish consumers often need to wait several working days to get a response from their branch on simple queries.

This new global campaign from N26 will seek to create the world’s largest online discussion about banking, opening up the conversation and answering consumers’ burning questions with a view to alleviating uncertainty and worry.

The Big Banking Chat will be hosted on social media and will offer tips and guidance on personal finance to help Irish people better navigate the current financial turmoil. Experts from N26 and trusted endorsers of N26 will be on hand giving Irish consumers a chance to ask about any aspect of consumer banking.

Sarunas Legeckas, General Manager for Ireland, N26, commented on the study: “The fact that Irish consumers are so financially stressed comes as no major surprise. This week, as banks here and elsewhere report challenging results for Q1, it is all too reminiscent of the last crisis for many.

The results of our survey also show that German consumers are among the least stressed. German consumers get comparatively better value from their banks. N26, a fully licensed bank by the European Central Bank, is already helping more than 100,000 Irish people discover a new way to bank.”

“Our youngest customer is 18, our eldest, 90. It is amazing how quickly Irish people have flocked to N26. Ireland has grown exponentially. Irish people want banking to be simple, easy to understand and yet informed by the most trusted regulator in Europe.

Technology has transformed and simplified every aspect of our lives, so why not banking? We have launched the Big Banking Chat as an ongoing discussion with Irish and other European consumers who feel frustrated by their banking experience and who have questions that they are not getting immediate and transparent answers on, he concluded”.

The study showed that Irish people also feel uncomfortable with banking jargon. 40% said they wouldn’t be able to explain what Accrued Interest was, closely followed by Annual Percentage Rate (34%) and Fixed-Rate Mortgage (33%). The products and phrases they were most confident about were bank statements, with 84% saying they could explain what this was to a novice, followed by an account holder (79%) and a savings account (82%).

Concerning personal finances in the current climate, 55% of Irish people currently have long-term saving plans. Of those, 39% say they are saving against the backdrop of financial uncertainty, while 25% are more hopeful of a return to normality, putting their savings towards a post-Covid holiday.

Finally, the survey revealed that the current lockdown is providing more opportunity for consumers to save. On average, since the implementations of self-isolation restrictions, Irish consumers report saving €164 per month, comparatively less than in other European markets (Belgium: €212, Netherlands: €178, Italy: €186, Spain: €182 and France: €172). Irish consumers will be able to use the Big Banking Chat to access expert tips on personal finance and can access more information on a dedicated N26 landing page, via the hashtag #BigBankingChat and on Facebook.