The news: Nearly half of UK consumers don’t know their credit scores, or how to improve them. But many are planning to borrow more to help with rising costs of living, according to a study from CRIF.
The study surveyed 7,000 consumers across France, Germany, Italy, the Czech Republic, Slovakia, and the UK in July 2022.
Key stats: Some of the most notable statistics from the study come from UK respondents, who are facing a cost of living crisis and rapidly rising interest rates.
Lack of knowledge: The study also found that one in 10 consumers has been denied credit since March 2020. Within that group,
A gap in the market: The lack of awareness around credit scores in the UK starkly contrasts with credit score knowledge in the US.
The big takeaway: Credit score awareness in the UK will grow in importance as prices continue to rise and UK consumers are forced to find new ways to make ends meet. According to another CRIF survey, 64% of UK consumers think banks and financial institutions aren’t doing enough to help their customers during difficult economic times. This is a huge opportunity for a bank or a fintech to step in and offer credit score educational resources to aid UK consumers in making better decisions when it comes to borrowing money.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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