International Personal Finance (IPF), a leading international provider of consumer credit in growth markets, has announced the findings of the second ‘Financial Wellbeing and Inclusion Report’, carried out by YouGov, a leading international, full service online market research agency.
The report found that whilst half (48%) of IPF’s customers across Europe and Mexico think their national economies will deteriorate over the next 12 months, nearly one in three (29%) foresee economic stability and 39% expect their own household finances will improve. This optimism is driven by a perception of an improvement in the employment markets; either by a change of a job, or an increased income. Mexicans are the most optimistic about their household finances with over half (55%) saying things will improve in the next 12 months. Poland and Czech Republic saw the biggest increase in household optimism against the same period six months ago.
John Mitra, Group Corporate Affairs Director of IPF, commented: “The results of the latest Financial Wellbeing and Inclusion Report provide further insight into the financial wellbeing of many of our customers. It is encouraging that there is increased optimism around household finances and people are generally more positive than just six months ago about how their national economies will perform.
“This research tells us our customers make considered decisions and central to this is the degree of confidence they have about the level and stability of their household income. As a result, we know we can continue to responsibly service this often underserved segment of society and make a positive difference to their lives.”
The report also found that the high cost of living remained the number one concern for half (50%) of IPF’s customers across Europe and Mexico. This was followed by concerns over unemployment (21%) and neighbourhood crime (11%). In Mexico, however, fear of neighbourhood crime was the principle concern for a third of people (34%). In addition, noticeably more people in Mexico are worried about neighbourhood crime and the cost of living compared to the results of the previous survey (up from 28% to 34% and from 13% to 22%, respectively). Out of all the countries surveyed, people in Hungary were the most concerned (80%) by the high cost of living.
When the cost of living was investigated further, the main reason was found to be the increase in the cost of food (33%). This was particularly true for customers from Slovakia (43%), Hungary (39%) and Poland (38%). In Romania, however, nearly half (44%) said increased utility costs were principally to blame.
To counter these concerns, IPF customers (77%) have continued to spend cautiously reducing expenditure on socialising (70%), consumer goods (68%) and holidays (63%). Disappointingly some customers have also cut back on buying quality food (38%) and heating (29%). Spending on education and healthcare are the areas least affected by tighter consumer spending.
John Mitra added: “It is clear that many household budgets are under continued pressure and they have reduced their spending accordingly. It is worth noting that spending cuts are done mainly on luxuries rather than essentials, which shows that many of our customers are reasonable and rational in their decisions.”
The second IPF Financial Wellbeing and Inclusion Report is available here.
Further information
Contact Nick Jones, Head of Communications, International Personal Finance
+44 (0) 113 285 6815
