·       Incomes among 18–30-year-olds have outpaced inflation, but housing is taking a bigger slice of the budget

·       Fewer young consumers can afford mortgages: 6% of under-30s hold a mortgage in 2026, down from 10% in 2019.

Consumers under 30 years old are the future of UK lending: they’re a healthy economy’s most promising main source of growth and, as a group, are launching their careers and taking on broader financial responsibilities. They also serve as a crucial litmus test of whether financial education, financial opportunity and quality of life in the UK are improving.

These are among the findings of TransUnion’s new study, “Lending to Key Growth Segments: The Shifting Credit Preferences and Behaviours of Under 30s”, which was presented at its annual 2026 UK Summit.

The study compared consumers aged 18–30 from 2019 to 2026 and assessed their evolving financial needs, financial behaviours, credit preferences and access to credit. It set out to assess whether younger consumers are financially better or worse off now than before the pandemic and the more recent inflation shock, and how their borrowing behaviours and credit preferences are changing.

“Much of what we think we know about how younger consumers manage money and use credit was formed years ago, and their behaviour has changed considerably since. Views that held true in years past may no longer reflect today's under-30s, many of whom are in a strong financial position and managing their finances responsibly,” said James O’Donnell, director of research and consulting at TransUnion.

“Correcting these misconceptions is essential to enabling appropriate access to credit, which, alongside healthy management of personal finances, serves as a fundamental catalyst for financial empowerment, supporting everyday purchasing and enabling significant life milestones such as owning a car or home ownership.

“Furthermore, lenders can implement underwriting model enhancements with affordability trended data to more accurately assess risk among these borrowers,” he added.

Are Under-30s Financially Better or Worse Off Now Than They Were Pre-Pandemic?

To understand how younger consumers’ financial position has changed, the study assessed under-30s’ income and whether it has kept pace with rising prices. The consumer financial picture is more positive than many might expect. According to TransUnion’s consumer credit data, median take-home pay among 18–30-year-olds rose from £1,759 a month in Q1 2019 to £2,600 in Q1 2026, an increase of 48%. Over the same period, household prices (CPIH) rose by 31%.

Based on this analysis, under-30s’ income hasn’t just kept up with inflation; it has outpaced it. These gains have also reached every income level, while the lowest quartile of young earners has seen the biggest proportional increase, with take-home pay up 55%.

A rise in income hasn’t removed the pressure from young consumers though, and this is most evident in housing. Among younger consumers paying rent, rent payment in Q1 2026 used 52% of their income, up from 40% in the early stages of the interest rate hikes (Q1 2022). For those with a mortgage, payments took 49% of income on average in Q1 2026, up from 39% in Q1 2022. Both have eased slightly since 2025, when mortgage payments took 53% of income and rental took 55%, but remain well above 2022 levels.

Chart 1: Monthly Rent and Mortgage Payments as a Share of Post-Tax Income, 18–30-year-olds

Note: This chart uses take-home pay (post-tax income) which is why the pressure appears more pronounced than if it were measured against gross income.

Source: TransUnion UK consumer credit data

Higher incomes also don’t mean that younger consumers are not in tight financial situations: around one in nine younger consumers (11.6%) have estimated monthly expenditure greater than their income. Lenders can track early risk signals among these consumers to ensure responsible access to credit. A weakening jobs market is adding to that pressure, with ONS figures showing unemployment among 18–24-year-olds rising to 14.4% in July, up from 11.6% this time last year.[1]

The TransUnion study shows that this financial pressure has not pushed younger consumers to excessively rely on credit to bridge the cost gap. Average unsecured debt per young borrower has risen since Q1 2023, when it was £4,545, but at £4,658 it remains below the £4,749 recorded in Q1 2019. With income growing much faster than borrowing, that debt equalled around 1.8 months of take-home pay in Q1 2026, down from 2.7 months in Q1 2019

Chart 2: Average Unsecured Debt per 18–30-Year-Old Borrower, in Months of Take-Home Pay

Source: TransUnion UK consumer credit data

Based on a consistent scoring methodology, average credit scores are also higher than in 2019 at every age from 18 to 30, with a difference of more than 30 points among consumers older than 21 across the cohorts. This is a further sign that housing pressure isn’t spilling over into how younger consumers manage credit or their overall creditworthiness.

Measured on these aspects, the study concluded that under-30 consumers are not worse off than before the pandemic. They earn significantly more in real terms, despite rising costs, and their unsecured debt load is lighter relative to income. Mortgage and housing costs are the exception to this trend, and a cooling jobs market for the youngest workers is a newer risk to watch, but so far neither is translating into heavier reliance on unsecured debt.

“Younger consumers are often portrayed as a generation in financial trouble, and when it comes to housing costs, that pressure is very real,” said O’Donnell. “But that pressure isn’t showing up in how they borrow. Their income has outpaced prices, and their debt burden is lighter relative to income than before the pandemic. Lenders should leverage these insights to enable broader and responsible access to eligible younger borrowers, which can lead to deeper lifetime relationships.”

How Do Younger Consumers’ Credit Preferences Compare to Their Pre-Pandemic Peers?

Younger consumers use credit differently now compared to their 2019 counterparts, as they use a noticeably different mix of credit, with most of the growth seen in flexible products linked to everyday spending.

Almost one in five (18%) used buy now, pay later (BNPL) in the six months prior to January 2026, up from 4% in 2019. BNPL’s rise hasn’t come at the expense of credit cards, though. The share of younger consumers holding a card has risen from 32% to 35% over the same period. New card openings have also reached historically high levels. Under-30s opened 750,000 new credit cards in Q1 2026, nearly double the 404,000 in Q1 2019, marking a significant increase in credit uptake and access among younger consumers.

Chart 3: Share of 18–30-Year-Olds Holding Credit Cards or BNPL

Source: TransUnion UK consumer credit data

The change in the use of high-cost short-term credit (HCSTC) is just as striking, and arguably more encouraging: fewer younger consumers are using HCSTC, which is generally the most expensive form of credit. The share with an unarranged overdraft has halved, from 6% to 3%, and the share that hold products like payday loans has fallen from 4% to under 1%.

Tighter regulator standards are likely behind this shift, along with more widespread credit education and financial awareness among today’s younger consumers, and greater access to lower-cost alternatives, as shared by consumers in TransUnion’s quarterly Consumer Pulse Studies. Combined with stronger incomes, these changes leave younger consumers far less exposed to credit that is often costlier and harder to manage.

Chart 4: Share of 18–30-Year-Olds Holding HCSTC or Unarranged Overdrafts

Source: TransUnion UK consumer credit data

Mortgages tell a less encouraging story. Among under 30s (18 to 29 year olds), the average proportion of consumers holding a mortgage was just 6% down from 10% in 2019. However, by the age of 30 more consumers have taken on a mortgage (15% in 2026), but that too has fallen drastically from 23% of 30-year-olds in 2019. Higher interest rates have made mortgages more expensive and, because eligibility criteria are designed to protect consumers, rising rates mean fewer younger consumers qualify for a mortgage, whether they want one or not. With housing already taking around half of income for those paying rent or a mortgage, the route to home ownership is clearly more challenging for this cohort.

“This isn’t a generation borrowing recklessly and, with incomes seeing strong growth, they’re not borrowing to make ends meet either. Our Consumer Pulse Studies reveal a more financially aware generation that is borrowing differently and generally more responsibly,” said O’Donnell. “They’re moving towards flexible credit linked to everyday spending and away from the most expensive forms of borrowing. That’s partly down to changing economic circumstances and partly down to greater awareness. Lenders that understand these new habits and build relationships early will be best placed to support younger consumers as they work towards bigger milestones, while building long-term loyal relationships.

Notes:

¹ ONS A01: Summary of labour market statistics

Brickk, a UK based rent reward and credit building platform, has announced a partnership with TransUnion, a global information and insights company and one of the UK’s leading credit reference agencies.

The partnership will enable Brickk to report renters' monthly rent payments directly to TransUnion. The agreement further enhances the reporting of rent payment data to TransUnion and the service is now live for Brickk members nationwide.

The partnership means Brickk members will see their rent payments reflected in their TransUnion credit profile, helping to build a verified credit history through a payment they are already making every month.

With over four million households living in privatly rented homes across the UK¹, rent is the single largest monthly financial commitment for millions of households. Yet for many renters, these payments have gone unrecognised by the financial system leaving them unable to demonstrate the same financial responsibility that mortgage holders build automatically through their repayments.

What sets Brickk apart is its tangible rewards programme that is paired with credit reporting. For £4.99 per month, members receive access to a discounted gift card marketplace spanning 1,000+ brands alongside credit reference agency reporting. This dual benefit means renters see an immediate reduction in everyday costs while building long-term financial resilience. To access the service, renters sign up, then connect their bank via Open Banking and give consent for their rent to be reported - they can withdraw at anytime. At sign-up renters are told that their data goes to credit reference agencies and that missed payments can affect their credit rating.

Brickk operates a B2C and B2B2C distribution model, partnering with property operators and employers to make rent reporting available to renters at the point of tenancy, reducing friction and embedding financial wellbeing support where renters need it most.

TransUnion’s chief product officer, Kelli Fielding, said: “Recent research conducted by TransUnion² showed that renters often have levels of financial resilience that might be going unrecognised. Just over 75% of renters consistently report that they will have no trouble handling their bills and loan payment obligations, and just under 70% expressed that they were either optimistic or relatively calm regarding their financial outlook for the year ahead. With this in mind, Brickk’s proposition is a timely and significant contribution to financial inclusion, that can help renters with access to credit products, such as mortgages and loans – for this reason, we’re delighted to be working with Brickk.”

Tina M and Naveli A, Co-Founders of Brickk, said: "Renters have been invisible to the financial system for too long. Paying rent on time, month after month, is one of the clearest demonstrations of financial responsibility, and it should count. Our partnership with TransUnion means that for millions of UK renters, that commitment will finally be recognised. Combined with our rewards marketplace, Brickk gives renters something no one else does: a better financial future and real savings today."

Brickk is available nationwide at www.brickk.co.uk

Notes:

1. English Housing Survey, 2026

2. The research quoted is TransUnion’s Q2 2026 Consumer Pulse Study, based on a survey of 1,000 adults in the UK. The Q2 2026 survey was conducted by TransUnion in partnership with third party research provider, Dynata.

“BNPL coming under FCA regulation is a welcome step in the long journey to bring the industry into alignment with broader consumer protections already in-place across other credit products. It is undoubtedly a positive development that will benefit consumers.

“In many respects, consumers are already reaping the benefits of these changes, with BNPL leaders having pre-emptively introduced many of the protections into their processes well in advance of the regulation coming into effect.

“We were particularly pleased to see clearer obligations for BNPL lenders to establish that consumers can afford the credit they’re seeking. This has proven to be a crucial protection, with TransUnion research showing that 42% of consumers saying affordability checks would make them feel safer when using BNPL products. Many consumers report that they already take a cautious approach and over two thirds (67%) carefully consider affordability before taking out a BNPL agreement. However, nearly one in five (18%) simply assume that they can manage it later. 

“We’re also pleased to see greater transparency around the credit product obligations the consumer is entering into – and the expansion of support mechanisms for consumers when difficulties arise. Of those support mechanisms, perhaps the most important is the greater recourse for independent escalation for complaints via the Financial Ombudsman Service (FOS).”

Notes:

Unless otherwise stated, all figures are from TransUnion’s Affordability study, based on a survey of 2,000 adults in the UK. The survey was conducted between 16-19 June 2026 by TransUnion in partnership with third party research provider, OnePoll.  

Ahead of the new regulation, TransUnion research is challenging BNPL stereotypes. Findings from the global information and insights provider show BNPL adoption now extends comfortably to consumers in their mid-40s, beyond the established younger user base. 

A TransUnion consumer survey found that 18% of UK adults said they currently have a loan with a BNPL provider. When broken down into generational usage, 27% of Millennials said they have an active BNPL loan, compared to 25% of Gen Z consumers.  

Across generations, BNPL has emerged as the second most popular form of short-term credit. When asked what their preferred form of short-term credit is, 21% of all consumers in the survey said BNPL, trailing only credit cards at 51%. Notably, Millennials exhibit the highest reported BNPL usage, with 45% saying they have had a BNPL loan at some point, outpacing Gen Z at 39% and Gen X at 37%, and significantly higher than Baby Boomers at 15%. 

TransUnion’s research shows BNPL usage appears to be maturing, reflecting a longer-term shift in attitudes as it continues to establish itself as an everyday payment product. Looking ahead, approximately one-third of both Millennials (34%) and Gen Z (32%) plan to get a BNPL loan within the next 12 months.  

Madhu Kejriwal, chief executive officer of TransUnion UK and Europe commented: “Widespread BNPL usage shows it has moved beyond the early adopters to become an increasingly embedded part of the credit landscape. While younger consumers were quick to lead the way, we’re now seeing Millennials more consistently integrate BNPL into everyday financial management. 

“As the market evolves, the priority for the industry is ensuring these solutions support long-term financial wellbeing while meeting consumers changing expectations. As an early mover in incorporating BNPL data into credit reporting, TransUnion remains committed to helping consumers manage their finances, while keeping payment behaviour visible and borrowing accessible and affordable.” 

James O'Donnell, TransUnion's director of research and consulting, added: “This survey demonstrates that BNPL continues to mature. Its widespread adoption shows its appeal to a broader spectrum of age groups. This also highlights the importance of the forthcoming BNPL regulation when the Financial Conduct Authority (FCA) will start regulating the industry from July 15, with the aim of reducing the risk of harm to consumers, while enabling the market to continue to innovate and grow sustainably.” 

TransUnion was the first credit reference agency in the UK to begin accepting BNPL information into credit files and has continued to work with providers to support the upcoming regulatory changes. TransUnion provides proportionate solutions and services that manage risk and preserve the customer buying experience.  

Now increasingly part of the mainstream consumer credit mix, it’s important for consumers to understand some key points for responsible BNPL use: 

• Check the repayments: make sure you are familiar with how much you need to repay and when payments will be due – missed payments can hurt your credit file.
• Consider which credit product best suits your needs: it may be that a 0% credit card is better for your purchase or better suited to your lifestyle. You should generally consider how BNPL fits into your wider financial picture.
• Avoid taking too many plans at once: because BNPL is easy to use and often interest free, it can be tempting to take on several plans at once. Try not to overstretch yourself with too many BNPL agreements at one time as this can make repayments harder to manage.
• Regularly monitoring your credit report can be a helpful step in understanding your financial standing. You can request a copy of your statutory TransUnion credit report for free through the TransUnion website, or access it for free via  Credit Karma, MoneySuperMarket Credit Monitor, or TotallyMoney and a wide variety of banking apps, including NatWest, Lloyds and Halifax.
• Lending partners preparing for upcoming FCA regulation can take action now by connecting with their TransUnion account manager or visiting our website to explore how BNPL data and affordability solutions can be implemented today. 

Notes:

Unless otherwise stated, all figures are from TransUnion’s Consumer Pulse study, based on a survey of 1,000 adults in the UK. The Q1 2026 survey was conducted between 10-21 February 2026 by TransUnion in partnership with third party research provider, Dynata.  

Generations are defined in this research as follows: Gen Z, 18-29 years old; Millennials, 30-45 years old; Gen X, 46-61 years old; and Baby Boomers, age 62 and above. 

The information in this release is intended for journalists and media professionals only. The information should not be construed as a financial promotion under the Financial Conduct Authority's (FCA) Handbook of rules and Guidance.  

TransUnion UK, a global information and insights company and an industry leader in affordability and income assessment solutions, has today announced the launch of Modelled Income Assessment. The new capability sits within TransUnion’s  Affordability Report, which is designed to help lenders make affordability decisions more confidently. 

TransUnion’s most recent Consumer Pulse Q1 2026 survey found that 38% of UK adults stated their income had changed over the last three monthsⁱ. As household finances continue to face sustained pressure and consumer income patterns grow increasingly volatile, lenders need fast, reliable income insights when traditional salary data is limited. TransUnion’s new Modelled Income solution addresses this by estimating net monthly income at configurable confidence thresholds to enable proportional affordability checks, rather than attempting to generate a precise pound-value prediction. Modelled Income returns an income estimate at a client-agreed custom thresholds, allowing lenders to tailor the output to their own risk appetite.  

Kelli Fielding, chief product officer at TransUnion in the UK, said: “The way people earn and manage money has fundamentally shifted. Incomes are more volatile, data gaps are more common, and lenders are under growing pressure to evidence affordability decisions. Modelled Income provides lenders with a dependable, data-driven proxy that fills critical gaps in affordability strategies, without adding friction for consumers or compliance risk for lenders. At TransUnion, Information for Good is at the heart of what we do, our new Modelled Income solution supports this mission by helping to reduce over indebtedness and improve access to affordable credit, whilst protecting consumers from taking on products they may not be able to afford.” 

The solution addresses client demand for friction right alternatives to manual verification or alternatives such as Open Banking. As such, it delivers an estimate of an individual’s net monthly income using advanced machine learning to support proportional affordability assessments in real time. 

Clare Hollis, director of credit at TransUnion in the UK, added: “Expectations around affordability assessments continue to rise as regulation, such as Consumer Duty, demands richer affordability data, clear evidence of fair outcomes, earlier identification of vulnerability, and support for customers showing signs of financial stress. Modelled Income is designed to sit within strong model risk management frameworks and address regulatory pressure for fairness and appropriate consumer outcomes, while helping lenders streamline onboarding and reduce unnecessary friction in the customer journey.” 

Modelled Income will be made available within TransUnion’s current Affordability Report. It is available to clients across lending, buy now pay later, retail finance, captive motor finance and payments verticals.  

To find out more about Modelled Income and TransUnion’s wider affordability capabilities, visit the TransUnion website.

Notes:

ⁱ TransUnion’s Consumer Pulse study, which is based on the survey of 1,000 adults in the UK, conducted February 2026

Madhu Kejriwal, CEO and Regional President of TransUnion UK & Europe, said: “This year’s Summit has been an inspiring opportunity to bring together leaders across industries to explore how we can build greater trust throughout the consumer journey. By engaging on challenges and sharing solutions that empower both businesses and consumers, we’re advancing our mission of using Information for Good and helping create an economy that’s transparent, inclusive and built on confidence.”

Three of the key takeaways from the event were:

1.     Trust is the defining currency of the digital economy

As consumers navigate new technologies, increasing risks and evolving expectations, organisations must deliver seamless and secure experiences with transparency embedded into every step of the customer journey. With the FCA’s Consumer Duty now fully in force, financial organisations are facing higher standards of fairness, transparency and accountability, while forthcoming reforms to the Consumer Credit Act and oversight of buy now, pay later products signal a broader shift toward regulation that prioritises the consumer experience.

By harnessing data and insights, each consumer can be reliably represented in the marketplace and businesses can make accurate, data-driven decisions.

2.     Data will drive financial inclusion

Financial exclusion remains a significant challenge, but with Consumer Duty, and updated Financial Ombudsman Service guidance, financial organisations have the opportunity to reach consumers who’ve traditionally been underserved. TransUnion’s latest Consumer Pulse study found that three-quarters (75%) of consumers believe that it’s important to have access to credit, yet just over half (58%) believe they have sufficient access to these products.ⁱ

By combining richer data with regulatory clarity, consumers can better understand and manage their financial health, while making access to credit fairer.

3.     Safeguard against fraud while upholding customer experience

With the financial services industry losing nearly £1.2 billion to fraud in 2024,ⁱⁱ fraud continues to be a major area of concern as new, sophisticated scams rapidly emerge. TransUnion research reveals that seven in ten UK adults (70%) have received a scam message from what appeared to be a trusted source, with over half (56%) believing the attempt used artificial intelligence, such as fake voices or images, to make it more convincing.ⁱⁱⁱ

Businesses must balance the demands of stopping fraud in real-time while maintaining friction-right experiences for consumers. By leveraging fraud analytics to identify suspicious behaviours using risk insights, device information and behavioural analytics, businesses can stop fraud in real-time, without disrupting the user experience for legitimate customers.

Commenting on the takeaways from the summit, James O’Donnell, Director of Research & Consulting at TransUnion UK, said: “We’ve seen a renewed sense of optimism this year. Despite economic uncertainty, businesses are embracing data-led innovation and putting trust at the centre of their strategies. With better insights, smarter analytics and a focus on inclusion, the industry is building a financial ecosystem that’s resilient, transparent and built for long-term growth.”

To learn more about TransUnion’s products and solutions, visit www.transunion.co.uk

Notes:

i TransUnion’s Q2 2025 Consumer Pulse survey of 1,000 adults was conducted between 5 and 9 May 2025 in partnership with Dynata

ii UK Finance’s Annual Fraud Report 2025

iii Research commissioned by TransUnion and conducted in June 2025 by YouGov. The figures are from a nationally representative sample of 2,180 UK adults aged 18+

●      For families, one in five parents (20%) are planning to use credit to fully or partly cover their trip 

●      Younger consumers are most credit-reliant for trips abroad, with 14% of 18-24s paying for their entire holiday with credit

With UK Holidaymakers heading on their summer breaks, new research from global insights company TransUnion reveals that one in 10 (10%) UK adults will pay for their 2025 summer holiday entirely using credit – including credit cards and Buy Now, Pay Later (BNPL). Meanwhile, 7% are using credit to partly fund their 2025 summer getaway.

In fact, 2% of UK adults admit they’re still paying off their 2024 summer break, while another 2% didn’t borrow for last year’s trip but now say they wish they had.

Madhu Kejriwal, CEO of TransUnion in the UK and Europe, said: “These findings highlight the growing role of short-term credit in making holiday plans a reality. Clearly, responsible credit use can help consumers to afford or spread the cost of life moments, like holidays. However, consumers should be aware of the risks of longer-term financial pressure and ensure they only make credit arrangements than they can afford to repay.”

With household budgets currently under strain and the average cost of a holiday for a family of four standing at £3,628^[1], many families are relying on credit to cover the cost of their trip. TransUnion’s research found that one in five parents (20%) are planning to pay for their 2025 summer holiday either entirely or partly with credit. 

As younger consumers face financial pressure due to cost-of-living pressures, 18-24-year-olds are the most likely age group to turn to credit or BNPL for their 2025 summer holiday, with 14% planning to fund their trip this way. 

Londoners are the most likely to use credit to entirely fund their 2025 summer holidays, with 17% planning to do so – more than four times the rate in Wales, where just 4% expect to rely on borrowing. This trend reflects the higher cost of living in the capital, where rising costs and everyday expenses are putting added pressure on household budgets. Northern Ireland (14%) follows closely behind London, while 10% of respondents in Scotland, the Midlands and Southern England say they’ll use credit to pay entirely for their holiday.

TransUnion shares tips for holidaymakers using credit:

●      Read your credit agreement carefully before booking a holiday – Check the terms and conditions of your credit agreement or BNPL loan thoroughly, including repayment deadlines and any late payment fees. Missed or late payments, even on small amounts, can be reported to credit reference agencies and negatively impact your credit report, potentially affecting your ability to borrow in the future.

●      Keep an eye on all credit purchases – Credit for flights, accommodation, and extras can quickly add up when planning a holiday. Keep a clear record of how much credit you’ve taken on and set reminders or enable automatic payments to avoid missed repayments and additional fees.

●      Monitor your credit report regularly – Keeping an eye on your credit report can help you stay in control of your borrowing and understand your financial standing before and after a holiday. You can check your TransUnion credit report and score for free through providers such as Credit Karma, MoneySuperMarket, or TotallyMoney, or get your free statutory credit report directly from TransUnion. Many high street banks and lenders also offer free access through their apps or websites.

●      Don’t ignore bills if you're struggling – If you find yourself struggling to pay off holiday-related debt, don’t ignore bills or letters about money you owe. Contact your lender for support or seek free, confidential advice from independent charities such as StepChange Debt Charity or National Debtline.

NOTES 

^[1] NimbleFins – Average Cost of a Holiday Abroad 2025

“As clarity around buy now, pay later (BNPL) regulation is provided, we welcome the introduction of clear legislation for a payment method now regularly used by millions. With adoption growing across all age groups, legislation is a positive and timely step to ensure consumers receive the same protections they enjoy with other regulated credit products. 

“TransUnion led the way as the first UK credit reference agency to include BNPL data in consumer credit files – consequently we are in a strong position to share insight and expertise on what this means for consumers and BNPL providers alike.

“Guided by our commitment to using ‘Information for Good’, we’ve worked to support both consumer protection and responsible lending, helping finance providers ensure payment plans are affordable and sustainable. 

“Based on our close collaboration with key clients, we believe that the vast majority of BNPL providers are committed to good customer outcomes, so our aspiration is that these regulations provide a useful lens to clarify any pending doubts.

“By promoting transparency, preventing unaffordable borrowing, and providing consumers with rights when issues arise, BNPL legislation will play a vital role in driving financial inclusion and broadening access to credit.”

According to the FCA, financially vulnerable consumers are susceptible to harm, due to their personal circumstances, including poor health, life changes like new caring responsibilities, or difficulty handling financial or emotional stress.ⁱⁱ In fact, the data from TransUnion shows the impact of money worries on mental wellbeing, with nearly seven in 10 (68%) financially vulnerable people feeling stressed when dealing with their finances.

James Robinson, managing director of consumer interactive at TransUnion in the UK, said: “With the economic climate looking like it could remain uncertain throughout 2025, many people in the UK are turning to borrowing to help manage their money and make ends meet. With a fifth of UK adults considering themselves to be financially vulnerable, responsible lending is critical. Access to credit products tailored to their needs can empower financially vulnerable consumers to avoid unmanageable debt and build financial resilience.”

The cost of living remains high, with inflation still above the Bank of England’s 2% target. In this climate, more than a quarter (26%) of UK adults are relying on credit cards to meet shortfalls in their monthly finances, while 16% dip into their overdrafts.

Meanwhile, 15% of UK adults borrow money from friends and family in order to be able to afford their monthly expenses, whilst over one in 10 (12%) turn to Buy Now, Pay Later (BNPL) services. Overall, one in 10 (10%) adults report that they wouldn’t be able to maintain their current lifestyle without credit or financing options.

Indeed, this reality was reflected in TransUnion’s Q4 2024 Consumer Pulse data, where since the previous quarter, consumer optimism has dropped a whopping 9% among middle income families (those earning between £30,000 - £79,999), falling from 57% who were optimistic about their household finances over the next 12 months to 48%. Low income families (those earning under £30,000 annually) remain the least optimistic, with only 37% stating they are optimistic about their household finances over the next 12 months, highlighting the continued strain on more financially vulnerable households.

However, many more struggle to consistently access credit, with 9% indicating having been turned down within the last 12 months. 35-44-year-olds (18%) were the most likely age demographic to have a credit application rejected.

The most common reason people said they were turned down for when looking to borrow money, is a low credit score (33%) – a demonstration of the importance of understanding and regularly monitoring your credit report.

One probable factor affecting credit scores is that almost one in five adults (19%) admitted to finding it hard to keep track of their monthly payment commitments across all of the financial products they use. Meanwhile, a quarter (25%) of UK adults reported that their provider didn’t believe they could afford to repay their debt, or that they had borrowed too much already.

James Robinson continues: “It is crucial that financially vulnerable customers are offered care and support to make informed credit decisions and improve their financial wellbeing. As part of our mission to use information for good, we leverage vulnerability and affordability insights, enabling lenders to provide access to lower-cost credit and preventing borrowers from falling into problem debt.”

TransUnion’s commitment to ‘Information for Good’ drives financial inclusion through responsible lending to ensure each consumer is reliably and safely represented in the marketplace. As part of this commitment, TransUnion announced that they were the first CRA to partner with the Vulnerability Registration Service, giving their clients access to an independent register of vulnerable individuals, helping them to identify vulnerabilities and make informed decisions in alignment with regulatory guidance.

To learn more about TransUnion’s affordability offerings, visit our Affordability Report here.

Notes:

ⁱ Consumer price inflation, UK - Office for National Statistics

ⁱⁱ Financial Conduct Authority (FCA)

LexisNexis Risk Solutions delivers high-volume, real-time data into hundreds of millions of U.K. insurance transactions a day via the LexisNexis® Informed Quotes platform. The business currently streamlines TransUnion data into approximately 20 U.K. insurance providers, including three of the U.K.’s top insurers.

When delivered into the insurance workflow via LexisNexis Risk Solutions, TransUnion’s comprehensive view of a consumer’s income and affordability can help insurance providers manage portfolio risks whilst enabling quicker, more informed decisions to help support new customers.

·       TransUnion’s Affordability Report helps insurance providers to assess the most appropriate premium payment option and interest rate for the individual based on their current financial situation. This enables providers to offer suitable payment options at speed, as part of the quote process, helping consumers to select, secure and pay for insurance in a way that is affordable.

·       By offering insurance providers seamless access to TransUnion’s Affordability Report at the point of quote, LexisNexis Risk Solutions is assisting them in providing consumers with access to affordable premium payment options, as a streamlined part of their shopping and buying experience.

As many households face ongoing challenges due to the cost-of-living crisisⁱ, the additional insights on affordability at the point of quote will help the insurance market help their customers while also supporting Consumer Duty obligations.

Kelli Fielding, chief product officer at TransUnion in the UK, said: “Affordability is a particular focus for many insurers at the moment. There is an ongoing squeeze on consumer finances, and almost half (46%) of households indicate their income is currently struggling to keep up with inflation.ⁱⁱ So, it's essential for insurance providers to better understand their customers’ financial situations. This means offering products tailored to their individual needs to support more sustainable and responsible decisions. By distributing TransUnion’s enhanced Affordability Report, along with TrueVision® Public and TrueVision, LexisNexis Risk Solutions can help its insurer clients build trust and strengthen both existing and new customer relationships.”

Louise Johnson, director of product management, insurance, U.K. and Ireland, at LexisNexis Risk Solutions, said: “Our insurance customers have been benefitting from streamlined access to TrueVision® via LexisNexis Informed Quotes since 2022. Expanding our relationship with TransUnion will help the insurance industry provide consumers the cover they need with the premium paid in a way they can afford, by offering crucial insight over premium affordability data. The value of this insight has become all the more pertinent now that the ABI has set out its Premium Finance Principlesⁱⁱⁱ and BIBA publishes its own Premium Finance Guide for Brokers^iv. The fact that these insights can be accessed alongside risk data on the individual at the point of quote, essentially means insurance providers can offer consumers more personalised policies, premiums and payment options.”

Notes:

ⁱ 43% of respondents strongly disagree or disagree with the statement ‘My household income is keeping up with the rate of inflation’. Data comes from TransUnion’s Q3 Consumer Pulse research, conducted among 1,000 respondents in September 2024.

ⁱⁱ 43% of respondents strongly disagree or disagree with the statement ‘My household income is keeping up with the rate of inflation’. Data comes from TransUnion’s Q3 Consumer Pulse research, conducted among 1,000 respondents in September 2024.

ⁱⁱⁱ https://www.abi.org.uk/news/news-articles/2024/4/abi-takes-action-on-motor-premium-finance/

^iv https://www.biba.org.uk/press-releases/new-guidance-to-help-brokers-show-fair-value-in-premium-finance-arrangements/

Kelli Fielding, chief product officer at TransUnion in the UK, said: “Trended Affordability is the biggest development in affordability reporting in recent years, setting a new standard for financial decision-making and reinforcing our continued investment in innovation. As the first to provide trended data on affordability that delivers a more robust view of a consumer’s affordability position, we’re enabling our clients to stay ahead in the market by making more accurate assessments of affordability, whilst mitigating risk.” 

The enhanced Affordability Report combines trended and traditional credit and affordability data to create a new set of trended algorithms and a Trended Affordability Score. By predicting a consumer’s future affordability position, the feature typically delivers an uplift in applications accepted whilst maintaining the same bad rate. 

Clare Hollis, director of core credit at TransUnion in the UK, commented: “By providing more precise affordability predictions and improving subsequent credit risk performance, Trended Affordability adds significant value to client decisioning. With many of the new trended attributes outperforming existing affordability reporting, we can deliver more accurate assessments for our clients as well as enhance outcomes for consumers. The use of trended data not only sets a new industry standard but also reinforces TransUnion’s position as a market leader in affordability assessment, helping to protect consumers and support financial resilience in navigating economic uncertainties.” 

To learn more about TransUnion’s affordability offerings, visit our Affordability Report here.

The National Credit Awards recognise remarkable achievements in the UK credit space, honouring outstanding professionals and firms which contribute towards raising the standards within the credit arena.

This year, TransUnion was named Credit Information Provider of the Year for its achievements in several areas, including promoting credit education through its CreditView solution, supporting businesses and consumers in the current economic climate with its enhanced Affordability Report and Affordability Screening, as well as helping identify and reduce fraud with TruValidate.

“We’re honoured to have received this recognition, which is a testament to our mission of using information for good to support businesses and consumers through the current challenging economic conditions,” said Kelli Fielding, chief product officer at TransUnion in the UK. “This award highlights our commitment and quick action in helping lenders to have better insights into the consumer’s financial position to enable more informed decisions, whilst equipping consumers with the tools to improve their financial wellbeing.”

TransUnion was also highly commended in the Innovation Award, attributed to the company’s guidance for finance providers on the credit reporting aspects of the Mortgage Charter relief scheme, as well as using enhanced data and insights to support businesses as they address the requirements of the new Consumer Duty regulation from the Financial Conduct Authority (FCA).  

To find out more about TransUnion’s product and solutions, visit the website.

The new Consumer Duty regulation from the Financial Conduct Authority (FCA) requires firms within the financial services sector to prioritise customer needs and empower them to make informed financial decisions.  

TransUnion's report expands on four key areas of focus: 

- Products and services outcome – firms will need to revisit their existing offerings to ensure they are fit for purpose. 

- Price and value outcome – firms must reassess their pricing and the value their products provide to consumers.

- Consumer understanding outcome – a firm’s communications should support consumers and enable them to make informed decisions. 

- Consumer support outcome – firms must ensure they are able to offer support that meets consumers’ needs throughout the relationship.

Sharing his views on the importance of Consumer Duty, CEO of TransUnion in the UK, Satrajit "Satty" Saha said: "Whilst firms will no doubt already have been working hard to achieve positive outcomes for their customers, this added regulatory focus will help reinforce just how pivotal it is that the consumer is at the heart of everything we’re doing in financial services. 

“The long-term financial wellbeing of consumers is crucial, not only for their own prosperity, but also for the success and sustainability of the economy. It’s imperative the industry proactively embraces conversations surrounding financial wellbeing, treating it with the same importance as mental and emotional wellness.”  

In its spring 2023 survey, the FCA found that 64% of firms expect to be fully compliant with the new regulation by the 31 Julyⁱ, indicating that many companies are still in the process of amending their offering and will still need ongoing support. The report delves into practical strategies, with data and insights at their core, to help ensure compliance, now and in the long-term. 

TransUnion has prepared its own readiness plan to align with the new regulatory requirements and stands ready to assist businesses with resources and tailored solutions during this transformative phase. 

"Thriving in the Age of Consumer Duty: Strategies for Success" is available for download now: https://www.transunion.co.uk/lp/thriving-in-the-age-of-consumer-duty 

Notes:

ⁱ The FCA – Consumer Duty firm survey results – Spring 2023 (released June 2023)

The leading personal credit platform and API – which is co-owned by Quint Group and TransUnion – empowers credit providers to deliver highly personalised credit offers to consumers via comparison websites and other third parties.  

Adding credit cards to the products supported by the platform will allow new and existing credit providers to leverage the power and flexibility of Monevo’s platform to host and distribute their credit card products.   

Adapting Monevo’s market-leading credit decisioning capabilities has been a crucial part of this development and has driven further integration with global insights and information provider TransUnion. New attributes will be available to providers, including TransUnion’s trended TrueVision data and affordability insights. 

Dawn Wood, UK territory director at Monevo, said: “Launching credit cards feels like a natural progression for Monevo. It’s a great opportunity for our existing credit providers to widen their avenues of distribution with us, whilst also allowing new clients to take advantage of Monevo’s products and services for the first time. Partners can also increase their offering and develop new relationships with more consumers.”  

Kelli Fielding, managing director of consumer interactive at TransUnion in the UK, said: "It’s important that consumers have access to credit that’s right for their needs and our latest research shows that of those planning to take out finance in the year ahead, credit cards are the most popular choice, cited by 48%.ⁱ By supporting Monevo, we’re helping consumers find appropriately tailored pre-approved credit offers, in line with their individual financial situation.”  

The new TransUnion data insights will give lenders a more detailed, accurate picture of an individual’s financial behaviour over a period of time, helping to ensure consumers are only taking on what they can manage responsibly whilst also supporting finance providers in reducing risk and enhancing customer relationships.  

Greg Cox, co-founder and CEO of Monevo & Quint Group, added: “Monevo has always been committed to creating fintech that ultimately improves consumers' access to the right credit. Adding credit cards to our platform allows us to continue to deliver on our purpose of improving access to credit for consumers globally while addressing a huge market opportunity that I have no doubt will fuel further exciting growth over the next year.” 

Monevo’s platform is already used by over 150 lenders and banks globally to manage, optimise and grow distribution of personal loans, auto loans and other credit products via third party comparison websites and financial apps. 

Notes: 

ⁱ TransUnion Consumer Pulse Q3 2022, based on the survey of 1,005 adults from 19 Aug.–29 Aug., 2022 

TransUnion’s Open Banking data,[i] summarised in the Consumer Credit 2022 white paper, shows that financial institutions have been experiencing the highest volume of Open Banking transactions, caused in part by banking becoming more digitised during the pandemic.

Shail Deep, chief product officer at TransUnion in the UK, commented: “We know that the main drivers behind Open Banking usage are the ease and convenience of automated processes (51%) and the fact that it is quicker to get a decision on finance applications (51%). Meanwhile, 47% of Open Banking users are motivated by not having to dig out old bank statements to open accounts.[ii]

“But Open Banking isn’t a standalone technology. It forms part of the consumer journey, and what UK consumers care most about is its role in providing a faster and friction-right experience, whether providers go out of their way to label it as Open Banking or not.”

Awareness of Open Banking among UK consumers is healthy, with nearly seven in 10 (68%) saying they have heard of it when given a definition of the technology, and one in six among these (17%) saying they have used Open Banking in the past. Gen Z consumers are the most positive about Open Banking, with 42% saying they’ve used it previously and a further 32% saying they haven’t used it yet but would be willing to do so.

Despite increased adoption, there are still challenges among a minority of the population, given that one in five (21%) adults say whilst they know what Open Banking is, they aren’t willing to consent to it.

Getting consumers to try Open Banking for themselves is a key step to tackling this hesitation. Once people use Open Banking, they are overwhelmingly likely to be positive about the experience and of those who have used it in the past, 93% would be likely to use it again in future.[ii]

Open Banking helps finance providers to verify applicants who may not have a credit history, or who might have trouble getting credit altogether by enabling a more detailed view of their current finances. The technology can also facilitate solutions that help consumers manage their money and adjust spending habits to better cope with inflationary and cost of living pressures.

Andy Piggott, director of core credit at TransUnion in the UK, added: “Our research shows that the cost of living crisis makes it harder for people in the UK to improve their financial position. That said, swifter and smarter income verification processes can help to navigate the storm. The TransUnion Open Banking Platform makes it easy to authenticate and onboard consumers in an intuitive and secure environment through a seamless screen flow. It helps people to share their financial data to get access to sustainable and affordable credit products that are right for them.”

Find out more about TransUnion’s Open Banking Platform which utilises detailed transactional data and robust categorisation to enable better consumer lending journeys here.

Read the Consumer Credit 2022 white paper from TransUnion here.

 Notes:

[i] TransUnion’s Open Banking data, 2020-2021

[ii] TransUnion Consumer Credit 2022, based on research conducted among 2,000 UK consumers, aged 18 and over, January 2022

A flagship event for the credit and financial services industry, the Credit Awards celebrates best-in-class performance, rewarding innovation and industry-shaping solutions, with TransUnion’s win affirming its status as a leading UK credit reference agency.  

Satrajit “Satty” Saha, CEO of TransUnion in the UK commented: “We’re delighted to receive this award for the second year running. Credit information is at the core of our offering, helping us derive insights to support both businesses and consumers, aligned with our commitment to using Information for Good.

“From our pioneering work in the buy now, pay later space, to helping credit providers and consumers navigating economic uncertainty, this award attests to the crucial role that data and insights play. I want to thank our dedicated colleagues for their drive and enthusiasm – this accolade is a reflection of all their hard work.”

The award hailed TransUnion’s achievements in several areas including:

• Being the first UK credit reference agency to accept buy now, pay later data into credit reports, having developed new credit search types and industry guidance
• Market leading affordability and ID verification solutions that use credit information to support a wide range of business sectors
• Client satisfaction which saw a huge increase in 2021, with TransUnion supporting businesses and consumers through the many changes the pandemic brought
• Credit education, acknowledging the work TransUnion has done to help consumers better understand their credit information and how it’s used

“Data is at the heart of all our solutions which is why this award means so much to us,” said Shail Deep, chief product officer of TransUnion in the UK. “We harness the power of information to help deliver the right outcomes for consumers and we’re delighted that the judges called out how this is reflected with buy now, pay later, where we’re driving change by bringing new data into consumer credit reports.”

Kelli Fielding, managing director of consumer interactive of TransUnion in the UK added: “This is a fantastic achievement! We’re committed to helping consumers better understand their credit information so they can build their credit score if need be, improving access to finance. We’re really proud that our efforts have been recognised in this way.”

TransUnion offers specialist services in fraud, identity and risk management, automated decisioning and demographics, supporting organisations across sectors including finance, retail, telecommunications, utilities, gaming, government and insurance.

The Credit Awards recognise and celebrate innovation and best practice across the UK credit and financial services industry and the win was based on TransUnion’s work supporting both businesses and consumers.  

Satrajit “Satty” Saha, CEO of TransUnion in the UK commented: “It’s an honour to receive this award. Credit information is absolutely pivotal to us and the services we provide. By ensuring that each consumer is reliably represented in the marketplace, we make trust possible between businesses and consumers,  and we’re really proud of what we’ve achieved as a business, and in particular how we responded through the challenges of the pandemic.  

“I’m grateful to all our colleagues, both here in the UK and globally, for their hard work and expertise in supporting our clients and consumers throughout this period. It’s great to see our efforts recognised  with such a key industry accolade and a fantastic end to the year for us.”  

The award celebrates TransUnion’s achievements in several areas including: 

• Educating and empowering consumers to take control of their credit report and score  

The judges recognised that TransUnion has helped millions of people with credit repair and educated UK consumers on their credit information and how it’s used in financial decisions. Collaborations with the likes of NatWest, NewDay and Incuto have provided consumers with easy access to their credit score and the information they need to improve it.  

• Preventing fraud and verifying identity 

Earlier this year, TransUnion streamlined its fraud prevention and identity verification under TruValidate, a global solution which delivers a comprehensive view of each consumer by linking proprietary data, personal data, device identifiers and online behaviours. From helping UK businesses to reduce financial losses due to fraud, to enabling them to confidently identify genuine consumers, the win recognised the impact of this service across a variety of business sectors. 

• Supporting businesses and protecting consumers  

By providing innovative, tailored solutions, TransUnion helps businesses meet changing customer needs and new regulation. One example that was recognised by the judges in the Credit Awards is its Affordability Solution for Gaming, designed to boost consumer protection in gambling, which is used by many leading gaming operators. Using individual-level financial data and industry-recognised scores, built by TransUnion, it helps inform fair and responsible decisions and protect players from gambling-related harm.  

Shail Deep, chief product officer of TransUnion in the UK added: “As an information and insights provider, our clients rely on accurate data so we’re thrilled to have been recognised in this way as Credit Information Provider of the Year. This data is central to many of our innovative products and solutions and as we look to the year ahead, we look forward to continuing to support our customers, and in turn the consumers they serve.”

TransUnion is committed to using Information for Good® and offers specialist services in fraud, identity and risk management, automated decisioning and demographics, supporting organisations across a wide variety of sectors including finance, retail, telecommunications, utilities, gaming, government and insurance. 

Most commonly, this was due to being furloughed (14%), experiencing a reduction in salary (11%), losing a job (11%) or newly receiving benefits (11%).

Colin Wallace, director of insurance at TransUnion in the UK, said: “As lockdown lifts, we’re continuing to see a polarised financial picture amongst UK consumers, with optimism in some quarters contrasted with a significant minority still struggling to pay bills and seeing their income change regularly. For the insurance industry, this uncertainty is making it more important to obtain a holistic picture of an individual’s financial situation, in order to help insurers make informed risk assessments and drive longer lifetime value.”

How COVID-19 has impacted the insurance sector

The financial uncertainty that the pandemic has brought means that for insurers, traditional data sources may be flagging customers as low risk when they are actually struggling with income shock or taking payment holidays elsewhere. According to TransUnion’s ongoing study, which has been tracking the financial impact of the pandemic, one in five (20%) UK households say they expect to be unable to keep up with at least one of their current bills or loan payments.

Of those, 9% will be unable to cover car insurance costs, while 7% say that they will not be able to pay their home insurance. And with the courts having been shut, county court judgements (CCJs) may have been delayed, meaning some signs of risk may not be visible to insurers unless they are able to use additional data sources.

At the other end of the scale, some potential customers being flagged as high risk may have seen their fortunes improve due to decreased cost of living during lockdown. In fact, 16% say that they paid down debt faster in recent months^ii_.

Price walking and profitable growth

This instability comes at a complicated time for the insurance sector. The implementation of impending price walking regulation from the Financial Conduct Authority is likely to make footprint growth more expensive, with stricter controls on incentives and price cuts offered to new versus existing customers. A data-led understanding of the quote pool will be key to identifying where there are opportunities for growth.

This and other ‘fair value’ considerations for instalment customers – such as making it easier to cancel auto-renewal on contracts – have the potential to reduce revenues unless offset elsewhere. Targeted risk selection may have a bigger role to play in ensuring new customers offer greater value to insurers in the long-term, and that potential problems are minimised by reducing the number of customers that will be likely to either default or consistently shop around.

Colin Wallace continues: “The current regulatory picture – combined with COVID-19 uncertainty – makes it harder to offset the cost of attracting business. In response, insurers will be rebuilding their risk models with greater power and precision as a priority. It will be key for the sector to use precise data and insights to aid them in targeting customers appropriately and confidently offering more instalment finance options.”

Supporting financially vulnerable customers

There is also greater regulatory pressure to ensure affordability checks are performed on all instalment customers. Balancing this requirement alongside making the right commercial decisions means insurers will need to work harder to cater for credit histories that are improving or declining over time – calculating for example, whether customers are long-term vulnerable or have suffered only a short-term income shock.

Globally, there are signs that an uneven economic recovery has affected insurance behaviours. Recent research from TransUnion in the US found a fifth of consumers went from being fully insured to being under or uninsured during the COVID-19 pandemicⁱⁱⁱ.

To find out more about how TransUnion can support insurers visit: transunion.co.uk/industry/insurance.

Notes

Unless otherwise stated, all figures relate to TransUnion’s Consumer Pulse study, based on research conducted among 1,027 adults between 2-3 June 2021.

“The extension of the stamp duty holiday is a likely factor behind the increase in net mortgage borrowing, which bounced back to £6.6bn in May, up from £3bn the previous month. The stamp duty holiday was extended from 31 March to 30 June, meaning buyers pay no stamp duty on the first £500,000 of a residential property purchase, as long as it’s completed before the end of June. This is seemingly driving an increase in activity as that date draws near. After that, the relief will be tapered until 30 September, meaning a residential property bought for up to £250,000 will be exempt from the tax until that date, which may help sustain activity over the next few months.

“Consumers have made significant repayments on credit throughout the pandemic, but in May they borrowed more than they paid off for the first time since August last year, with net borrowing at £0.3bn. This is likely due to a combination of factors, with some households spending more as lockdowns ease whilst others are simply struggling to continue paying down debt.

“Our own research showed that whilst 35% of consumers had been able to increase their savingsⁱ through the pandemic, 32% of UK households are currently negatively financially impacted, according to our latest Consumer Pulse Studyⁱⁱ. This polarising impact of COVID-19 is likely to come into sharper focus as financial accommodations come to an end over the coming months, so it’s essential that finance providers have the best possible data and insights at their disposal. Having a comprehensive understanding of an individual’s financial situation will support lenders in making informed decisions about affordability, and in creating tailored customer support plans as we navigate our way forward on the road to recovery.”

Notes:

New developments are wide-ranging, with improved analytics capabilities and a streamlined screen journey which includes anti-money laundering (AML) checks. These checks must be conducted as part of the Open Banking process, and are additional to the AML checks that the finance providers themselves must perform.

Shail Deep, chief product officer at TransUnion in the UK commented: “The ongoing instability resulting from COVID-19 may well drive greater adoption of Open Banking as finance providers seek to have the most up-to-date assessment of a person’s financial standing. As UK households adapt to changing financial circumstances, with four out of 10 (39%) worried about paying billsⁱ, it’s essential that lenders are getting the most accurate picture possible so they can assess affordability. TransUnion Open Banking offers a highly-detailed view of a person’s financial data, giving lenders a more comprehensive picture.”

Since it was introduced in 2018, finance providers have been adopting Open Banking and today over 40 UK current account and credit card providers are sharing financial data in this way. Continuous improvements in infrastructure have seen API response times reduced to less than a second, whilst in April 2020 there were over 400 million successful API calls made in totalⁱⁱ. As more finance providers offer the service, consumer adoption is also increasing and according to PWC, 64% of adults are expected to be using it by 2022ⁱⁱⁱ.

Shail Deep continues: “Consumers are becoming increasingly aware of the importance of their financial standing when it comes to credit assessments. This is particularly true in the current climate, with our study of UK consumers showing that six out of 10^iv feel it’s important to monitor their credit during the ongoing pandemic. Open Banking puts the consumer in the driving seat when it comes to sharing their financial information, and makes applying for credit quick and straightforward, since the lender has all the information needed.”

TransUnion’s purpose-built Open Banking solution can be integrated into an existing web journey or provided as a standalone product, and can be tailored to meet the needs of different finance providers and their existing infrastructure.

In recent months, TransUnion has seen growing demand from various business sectors, and is already working with one of the UK’s leading high street banks, as well as a range of other lenders.

David Firth, head of Open Banking for TransUnion in the UK said: “The granularity of the detail available with Open Banking gives lenders greater confidence assessing creditworthiness. This can be particularly useful for those with a thin credit file – individuals who may not have much credit history, yet may not pose a credit risk. Open Banking gives full visibility into financial behaviour; opening up access to credit for some that may have previously found it difficult to access mainstream finance.

“With COVID-19 putting pressure on personal finances, Open Banking can help lenders to offer suitable products, taking into account rapidly-changing circumstances, and support consumers in accessing the credit they need. Given the growth we were already seeing prior to this, we envisage that we’ll continue to see increasing adoption by both finance providers and their customers, as we navigate these challenging times.”

Visit TransUnion’s website to find out more about its Open Banking services to businesses.

Notes

i TransUnion’s Financial Hardship Study, commencing 23 March and incorporating a weekly survey of 1000 UK consumers: based on average taken from 23 March to 1 June 2020

ii OpenBanking.org.net 

iii Report by PwC/Open Data Institute Future of Open Banking Report 06/18 https://www.pwc.co.uk/industries/financial-services/insights/seize-open-banking-opportunity.html

iv TransUnion’s Financial Hardship Study, survey of 1,007 UK consumers conducted 1 June 2020

Whilst the gaming sector is experiencing a significant impact as a result of the COVID-19 pandemic, with major events and sports fixtures cancelled in light of social distancing, it is as important as ever to ensure consumers are not spending more than they can afford, particularly given the current uncertainty.

Central to the partnership will be BetVictor’s implementation of TransUnion’s ground-breaking Affordability Solution for Gaming – a suite of tools designed to boost consumer protection in gambling.

The new solution uses individual-level financial data and industry-recognised scores built by TransUnion, along with sociodemographic and property data. Combined, this can provide BetVictor with a much deeper understanding and more holistic view of its customers' affordability levels. The helps to inform fair and responsible decisions and protect players from gambling-related harm.

Adam Hancox, head of gaming at TransUnion in the UK and Europe commented: “TransUnion is delighted to support BetVictor in ensuring responsible gaming through smarter decision-making. Designed specifically for the iGaming market, our new Affordability Solution for Gaming uses cutting-edge modelling and analytics to provide a holistic view of the customer. By generating an assessment and assigning a rating, it will help BetVictor to identify the financial stress and potential vulnerability of players at any point in the customer journey.

”Using granular-level, real-time data, TransUnion’s tool will provide BetVictor with the most up-to-date view of its players, helping to inform fair, responsible decisions whilst also complying with industry regulations and providing a clear audit trail.”

BetVictor’s chief legal and compliance officer Rob Smith added: "BetVictor’s vision is to add excitement to sports and casino by providing a safe environment to enjoy gambling responsibly. We are serious about keeping the customer safer, and integrating TransUnion's tool is a further data source that can help us understand our customers and build a more accurate customer profile, especially when it comes to a customer’s affordability.

"We've looked at a number of solutions over the past six months and TransUnion’s Affordability Solution for Gaming was the only one that provides qualified information from a wide variety of data sources that can help develop our customer profiles. This allows us to make customer assessments at scale and we’re extremely pleased with our continued partnership with TransUnion."

This contrasts with research commissioned just before the outbreak for TransUnion’s Consumer Credit 2020 report, where 60% of consumers** had stated they had the ability to withstand a financial shock – highlighting that the pandemic is affecting even those that may have previously considered themselves to be protected from this kind of uncertainty.

The latest study shows that 70% of those consumers who feel they are impacted are concerned about paying their bills, and say on average they will be short nearly £600 in the near future. Much of this can likely be attributed to the fact that 39% of those impacted have had their working hours reduced, and the research shows that the impact is being felt across all ages, regions, ethnicity and income levels.

Will North, director of core credit at TransUnion in the UK noted: “These figures give a stark picture of the immediate aftermath of the financial shock we’ve seen following COVID-19, with an indication of some difficult times ahead for businesses as consumers struggle to make ends meet. It’s more important than ever that credit providers have strategies in place to help them assess a customer’s financial standing and to be able to identify quickly those that may be struggling, so they can offer support if needed.”

In the UK, 59% of survey respondents indicated that their household income has been impacted – the same as in the US. However, of those who said they were not currently feeling the pinch, 28% feel it will be impacted negatively in the future.

In addition:

• 37% of UK respondents say they will delay purchasing a holiday, and 14% were planning on postponing a home purchase
• Of those worried about their ability to pay bills and loans, 59% believe they will be impacted within a month, whilst 34% state they will see this impact between one and three months’ time
• Looking at UK residents who feel they are impacted financially, and are concerned about their ability to pay bills and loan repayments:
  • They note utility bills (46%), rent payments (44%) and credit card bills (35%) are the key bills they will not be able to pay
  • This subgroup feel, on average, they will be £598.50 short when trying to pay their bills
  • To help pay the bills, 35% will dip into savings, and 26% will seek to borrow from a friend or family member. 23% do not know how they will pay their bills or loan repayments.

Acting responsibly, 36% of the consumers impacted financially and concerned about their ability to pay bills have reached out to companies they have accounts with to discuss payment options, but of those who reached out, 46% say the companies have not provided guidance on what their payment options are.

North continues: “It’s really important that there is a dialogue between businesses and their customers at this time of uncertainty. With credit markets in flux, it’s incumbent on lenders and those in positions of trust when it comes to finances to reach out and help customers understand their total credit commitments and broader financial position, offering advice and guidance where appropriate to help them get through this difficult time.”

TransUnion is working with organisations across both the public and private sectors to support them with the challenges they’re facing and will be providing regular insights into the impact COVID-19 is having on consumer finances.

*TransUnion’s consumer research study of 1,095 UK adults conducted on 23 – 24 March 2020. Updates to the pulse research will occur weekly, including insights from various TransUnion leaders about the impact of the COVID-19 pandemic.

**Nationally-representative survey of 2000 consumers, carried out November 2019