Fintech Klarna Survey Reveals that UK Consumers are Less Inclined to Invest Money

Recent data from Fintech firm Klarna, an international retail bank, payments, and shopping service, indicates that UK consumers are saving a larger share of their earnings every month when compared to their global peers. However, UK consumers are also less interested in investing their funds at this time.

Klarna’s Money Management pulse, carried out across 11 different countries, reveals that the United Kingdom’s clients are saving the most, putting aside around 14% of their earnings every month, an amount that is more than any other nation except Australia and currently on an upward trend.

UK consumers (on average) save around £311 per month, which is 10% greater than what they had been saving at the start of last year, for an approximate total of £16 billion. The most commonly-cited reasons for savings are to be able to go on a vacation (37%), putting funds away for retirement (34%), and working on home improvements (27%).

Although UK consumers show a greater preference for putting their funds in savings accounts, they are also a lot less interested in investing, with merely 3 in 10 (29%) doing so against the international average of 4 in 10 (37%).

Meanwhile, 9 in 10 (86%) Brits put their funds into a savings account, and among those who do actually invest, stocks are mentioned as the most popular investment asset in the United Kingdom, with 7 in 10 (67%) choosing this type of investment, followed up by mutual funds (34%) and then bonds (34%).

Viveka Söderbäck Consumer trend expert at Klarna stated:

“As volatility in the stock market has increased over the past few months, Brits have possibly become more cautious with their money, saving at a higher rate. After over two years of uncertainty over traveling, it’s perhaps not surprising that one of the main reasons for savings is to go on vacation, followed by putting away pension money.”

As noted in the update, the insights from Klarna’s consumer research, carried out with assistance from Nepa, covered 11 different nations (the US, UK, Australia, Germany, Austria, the Netherlands, Belgium, France, Sweden, Norway, and Finland). The research is carried out on a quarterly basis, and includes a minimum of 1,000 respondents in every country per quarter.

In total, over 18,000 consumers (out of which 1,648 were from the United Kingdom) took part in the research during Q4 2021 (from October to December). The sample sizes are nationally representative, naturally including Klarna clients as well as non-Klarna customers, and have reportedly been chosen by research firm Nepa.



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