The need for businesses to prioritise financial education in 2024

This last year has certainly been challenging for everyone with inflation and rising interest rates eroding households’ disposable monthly income. As we look ahead, while there have been some positive economic indicators, the next twelve months will likely see continued challenging times. This means it’s never been more important to help drive consumer awareness and education about managing finances – and empowering people’s financial health to meet their goals.

That importance is clearly a priority for businesses as well, which is very welcome, but one that perhaps is not being fully met. In our survey of more than 500 British businesses to mark CAW, nearly 60% admitted they could be doing more to educate their customers on how to better manage their finances.

Financial health isn’t just related to money management. Improving access to services and preventing fraud and financial crime are also areas businesses are making a priority to support their customer’s financial health. Three-quarters of businesses are concerned about the impact fraud and financial security could have on their operations, while more than half (54%) agree that the industry could again do more to educate them on the potential risks and dangers of financial crime.

However, the survey also revealed potential complacency. Some 23% said they didn’t need to invest more in their fraud prevention systems as they had already done so. This potentially leaves them vulnerable to new and sophisticated fraud attacks, especially ones created via artificial intelligence.

Meanwhile, following the introduction of Consumer Duty, 59% said they are considering, or committing to, new investment to help vulnerable customers and those with support needs access their services in a more accessible way, boosting financial inclusion.

With Consumer Duty obligating firms to provide better communication methods and to better identify potential vulnerable customers, it’s a positive sign that so many businesses are taking the new regulations seriously.

Among the reasons cited for not making progress in these areas, businesses cited a lack of budget, lack of internal resources, or not having the right technology in place. 

It’s clear that businesses need to think about how best they can invest in new technology and drive innovation, helping them to protect their customers – and their business’s reputation – from fraud and improve access to their services and by extension financial inclusion. Overcoming these barriers will be crucial to build further success and help people take control of their finances.

On top of this, education and awareness remain paramount. By providing the right information we can ensure that people can feel empowered to make the right choices about their finances and navigate difficult times.