Digital banking boosts saving among 18-24 yr-olds

Category: Savings
Author: Tim Leonard
Date: 13/05/2016

The advent of online and mobile banking has made it easier and quicker to get to grips with our bank balance, and it seems as though it's also had a positive impact on the savings habits of the younger generation, who have been the most enthusiastic recipients of the new technology.

Easier to save

Halifax's Generation Save Report, which analyses the savings habits of those aged 18 to 24, clearly shows that digital banking is having a positive effect on young people's attitude to saving money: 81% of respondents who use online banking, and 82% of those who use mobile banking apps, stated that having such easy access to their bank account makes it easier to save. Around three in five of digital banking users also said it made them more likely to move money into their savings account and that it increased their awareness of how much they have stashed away.

Clearly, the younger generation are switched on when it comes to realising the benefits of digital banking and saving, but other age groups are falling behind. Those aged over-55 were found to be the least responsive, with only one in four of those who use digital banking saying that it makes them more inclined to move money into their savings.

Giles Martin, head of Halifax Savings, commented: "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 at the front of their minds. 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."

However, the love affair with digital banking can have its drawbacks - according to the research, younger savers could be missing out on more competitive savings rates due to their preference of having all their accounts in one place. Overall, 63% of savers have a savings account with a different provider to their main current account, but this drops to just 37% for those aged 18 to 24. This probably stems from the ease of being able to access both a bank account and a savings account in the same place and via the same banking app, but while this certainly makes things simpler, it means that the money saved may not be working as hard as it could be.

Make your savings work

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