Digital banking helping young people to save

Young people are using digital banking to help them to save, according to recent research conducted by Halifax.

Of the young people (18 to 24-year-olds) with savings accounts, 81 per cent using online baking and 82 per cent using mobile banking say that using these facilities helps them to save more.

In addition to this, around three in five said it makes them more likely to move money into their savings account (59 per cent online and 65 per cent mobile) and around four in five said it makes them more aware of their savings balance (80 per cent online and 84 per cent mobile).

This technology is being utilised much more heavily by younger generations, it seems. Halifax’s research showed that while 18 per cent of 18 to 24-year-olds find online banking beneficial to saving, just 58 per cent of over-55s are of the same opinion. This gap is even wider when it comes to mobile, with just 48 per cent finding it useful for reviewing bank accounts.

Giles Martin, head of Halifax Savings, said: “This research tells us that online and mobile banking is actually helping a lot of young people to save. It’s clear that having easy real-time access to their savings balance, whether in their pocket or on their PC, is keeping saving front of mind.

“This is great news if it means that young people are getting into good savings habits early in life, particularly at a time when reaching those key milestones like buying a first car or first home can feel out of reach for many.”

In fact, young people are tending to control all of their finances online, even when it comes to opening a new bank account. 74 per cent of 18 to 24-year-olds prefer this method for opening a bank account, while just 30 per cent of over-65s choose this option. In contrast, 60 per cent of this older age group prefer to go in-branch to open accounts.

Online banking is still much more popular than mobile banking though, with 85 per cent of people banking online, compared to just 41 per cent of people who use mobile.

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