Last month, the Competition and Markets Authority (CMA) published their findings on the competitiveness of retail banking services in the UK. Investigating current accounts in particular, they reported that customers could save an average of £70 a year by switching their accounts.
Resistance to change
Today’s findings from YouGov have shown that customers are highly resistant to switching accounts from high street banks, with only 18% saying they would bank with alternative providers and challenger banks. The CMA also found that 79% of current account holders have not even looked to see if there was a better deal elsewhere in the past year.
Information overload
Data, information and the choices available to consumers have never been greater. But it seems that, even though the public is disillusioned with the banks, it has been slow to take advantage of the options available. This could be for a number of reasons: a lack of understanding, limited practical guidance or simply just not enough time to fully assess all the alternatives and their relative benefits. Actively managing finances seems like a hassle. Consumers feel overloaded with information.
Information is power
However, information is power. Consumers should continue reading and exploring new avenues to improve their financial well-being. At a time of historically low interest rates and volatility in many investment markets, the savvy investor would be wise to keep reading, learning and shopping around for better returns.
We would advise to start with what you know – tangible, physical investments that are easy to understand. For us, at Wellesley, this is property. As the market continues to grow and the economy improves, we are always looking for new partners to invest with into bricks and mortar in the UK. The potential returns speak for themselves and the risks, such as they are, are not difficult to understand.
Financial responsibility
Today, financial apathy is the equivalent to losing money. Consumers need to take responsibility for their own finances and start by pursuing the opportunities they know the most about and with which they feel most comfortable. Data and information do not have to be a burden. In fact, they are the very tools to greater financial autonomy. For simple and straightforward investment options, why not explore The Wellesley Way?