Report: Bank Customers’ Financial Condition Deteriorates as Inflation Persists
September 6, 2022
A growing number of bank customers say inflation is taking a toll on their finances, including those classified as financially healthy, according to the most recent monthly survey data from research firm J.D. Power. The company polled 4,000 retail bank customers in June and found that 70% said prices are increasing faster than their incomes, up from 61% earlier this year. The largest month-over-month increase was among respondents classified as financially healthy, the firm said.
Bank customers also expressed low levels of confidence in their ability to handle inflation, although the ratio of healthy to unhealthy customers remained relatively unchanged, J.D. Power said. At the same time, a growing number of customers are leaning more heavily on credit cards even though higher balances will affect their credit ratings.
“Customers whose financial health is stressed are most likely to agree that their credit score helps with more than getting a loan/borrowing money (75%) and, to that end, 41% of customers have a personal goal to improve their credit score in the next 12 months. That includes half of the vulnerable population and 48% of those under age 40,” the firm said. Read more.