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.  

Research from TransUnion’s Q3 2025 Consumer Pulse survey shows that while the overwhelming majority (95%) of Gen Z believes that access to credit is important, many may already be feeling the strain of day-to-day financial commitments. Nearly four in 10 (38%) reported cutting back on discretionary spending, including dining out and entertainment, in the last three months.

When looking ahead, almost half of all UK consumers (47%) expect to spend more on essentials such as bills, utilities and credit repayments. Research suggests that Gen Z may also be the most concerned about future financial security as almost a quarter (23%) had saved more in emergency funds in the past three months.

James Robinson, TransUnion’s managing director of consumer interactive in the UK, said: “Younger generations can often be the most vulnerable as they begin to navigate the financial landscape. Becoming financially independent and taking on the responsibility of everyday expenditures for the first time can be overwhelming and confusing to many. This is why it is important for students, and young people more generally, to equip themselves with the knowledge and tools they need to understand their credit report and scores. This can help them to better understand their financial standing and help them make the right financial decisions.”

Despite already being vigilant with their spending, students who take out credit for the first time are unfortunately a high risk of fraud. More than half (55%) of Gen Z reported being targeted by fraud in the last three months, with 10% having fallen victim – much higher than any other generation, with the average rate being 5%. Phishing (fraudulent emails, websites or QR codes designed to steal data) is the most common threat, with 43% of  consumers having been targeted or fallen victim to a phishing scheme, this is followed by  vishing (fraudulent phone calls) with 40% and smishing (fake text messages) with 37% of consumers having been targeted or fallen victim.

As students take on financial responsibilities and start to build their credit profile, TransUnion has shared some tips on how to create positive credit habits early and be aware of potential fraud risks:

●      Pay bills on time

Whether it’s utilities, like water or electricity bills for a shared house or your phone contract, late or missed payments can harm your credit score, especially if your name is on the bill. Speak to your housemates about splitting household bills and who’s responsible for paying them, and set up reminders to avoid missing payments.

●      Don’t apply for lots of credit at once

Making multiple applications in a short space of time can lower your credit score. Check your credit score before applying to get a sense of what products you’re likely to be eligible for.

●      Budget and plan

If you live in halls, your college or university will usually take rent payments by direct debit each term, so make sure the money is there when that date comes around. A failed direct debit could incur charges with your bank, as well as impacting your credit score, and may be in breach of your rent contract as well.

●      Keep an eye on your credit score

Regular checks can help you track your financial health and spot any unusual activity, which could be a warning sign of potential fraud. You can check your TransUnion credit report for free via Credit Karma, Credit Monitor from MoneySuperMarket or TotallyMoney.

●      Don’t rely on your overdraft and credit limits

Although student loans won’t appear on your credit report, overdrafts, credit cards and personal loans will. Try to keep balances low or paid in full on credit cards and overdrafts, and be sure to make regular repayments.

●      Watch out for scams

Fraudsters may pose as banks, delivery companies, or even friends. Be cautious about things like “free” holidays or an unexpected refund – if it seems too good to be true, it probably is. Never click suspicious links – instead, contact the company directly using official contact details.

●      Report suspicious activity

If you think your details have been compromised, contact your bank immediately, consider freezing your accounts, and report the incident to Action Fraud.

Starting university is about more than lectures and late-night study sessions; it’s also about building the foundation for your future financial life. By taking steps now to manage your credit responsibly and protect yourself from fraud, you’ll be setting yourself up for success long after graduation.

Notes:

Unless otherwise stated, all figures are from TransUnion’s Consumer Pulse study, which is based on the survey of 1,000 adults in the UK, conducted between 17 July and 4 August 2025 by TransUnion in partnership with third-party research provider, Dynata.

Gen Z is defined in this research as adults aged 18-28 years old.

The awards, based on customer feedback, place the information and insights company as the UK’s industry leader of choice. TransUnion has retained the title of Credit Information Partner of the Year since 2021, this year clients highlighted TransUnion’s strengths in their customer-facing approach and credit education.

James Robinson, managing director of consumer interactive for TransUnion in the UK, commented: “We’re thrilled to have been named as Credit Information Partner of the Year for a fifth year. At TransUnion, information for good is at the heart of what we do; we’re committed to supporting our clients and the customers they serve to help improve financial wellbeing and better consumer’s understanding of their credit information. This award demonstrates the hard work of our teams. A huge thank you to all that voted for us and their continued support.”

Jacqueline Dewey, CEO of Smart Money People said: “A big congratulations to TransUnion UK for winning this award for the fifth year in a row. It’s great to see recognition for a team that’s helping so many people better understand their credit. Users really appreciate how clear and easy their credit reports are to navigate, and the helpful tips on where things can be improved make a real difference. TransUnion is there when it counts, giving people the information they need to take control of their financial journey. Well done to the whole team.”

The Consumer Credit Awards are run by Smart Money People to increase trust and transparency in financial services, by giving consumers and clients the chance to have their say. This year’s awards saw over 93,000 reviews left for the 16 categories across 18 weeks.

For more about TransUnion's services, visit www.transunion.co.uk

New data from TransUnion, a global information and insights company, has revealed that more than two in five (43%) UK consumers were optimistic about their household finances over the next 12 months. The figure is up from 41% in Q1 2025 and a significant increase from a low of 26% in Q3 2022, according to the data released as part of its Q2 2025 Consumer Pulse report. Gen Z showed the largest year-on-year (YoY) increase in financial optimism, up nine percentage points to 64%.

Yet, as household inflation unexpectedly jumped to 4.1% in the year to June,ⁱ 85% of UK adults ranked inflation for everyday goods among their top three financial concerns over the next six months. Interest rates (54%) were the second most cited concern, followed by recession fears (49%). Housing costs were also a key concern for 42% of consumers, with the impact strongest among Gen Z (61%) and Millennials (52%) who may be trying to get on the housing ladder.

James O’Donnell, Director of Research & Consulting at TransUnion in the UK, said: “Despite growing consumer optimism, the long shadow of high inflation and high interest rates continues to put pressure on consumer spending; this is exacerbated by a weakening jobs market and lower wage growth expectations. In today’s economic climate, access to responsible credit and effective credit education is more important than ever. Encouragingly, consumers are becoming more proactive, with a growing number regularly checking their credit reports. Gen Z, in particular, stands out; with nearly 90% reporting that they monitor their credit, reflecting both their awareness and the industry’s efforts to improve financial literacy. It’s promising to see this level of engagement, especially in challenging times.”

Despite signs of economic stabilisation, consumers remain cautious. While the proportion of consumers expecting to miss a current bill or loan payment dropped from 24% in Q2 2024 to 17%, essential spending pressures remain as almost half (49%) expect their bills and loan repayments to increase in the next three months. Potentially as a result, 47% of consumers have reduced discretionary spending – including dining out, travel and entertainment – in the past three months, with 41% planning to cut back further over the next three months.

Access to credit and lending products is crucial to build resilience, particularly as younger generations aim to reach financial milestones. Two in five Gen Z (43%) and Millennial (40%) consumers plan to apply for new credit or refinance existing credit in the next year, compared to only 18% of Gen X and 5% of Baby Boomers. The most common products among those planning to apply for new credit or refinance existing credit included credit cards (57%) – up from 49% a year ago – buy now, pay later services (26%) and personal loans (26%).

Yet, despite 97% of Gen Z and 93% of Millennials believing it’s important to have access to credit and lending products to achieve financial goals and high credit demand, only half of Gen Z (50%) and Millennials (52%) believe they have sufficient access to credit and lending products.

Credit monitoring also varies across generations, with Gen Z consumers (89%) most likely to monitor their credit reports. While 37% of all respondents believe credit monitoring is at least very important, this sentiment was strongest among Gen Z (58%).

For more information on the Consumer Pulse study findings, please visit the TransUnion website.

Notes:

Unless otherwise stated, all figures are from TransUnion’s Consumer Pulse study, which is based on the survey of 1,000 adults in the UK, conducted between 5 and 9 May 2025.

Generations are defined in this research as follows: Gen Z, 18-28 years old; Millennials, 29-44 years old; Gen X, 45-60 years old; and Baby Boomers, age 61 and above.

ⁱ https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate

The average credit card debt per borrower has climbed to £2,920ⁱⁱⁱ – according to the Consumer Credit Report 2025 from TransUnion, a global information and insights company.

With two-thirds (67%) of consumers feeling financially comfortable and 43% optimistic about their household finances over the next 12 months – up from 26% in 2022 – demand for credit is growing. Since 2022, the average credit card balance per borrower has grown by 15%.

James O’Donnell, Director of Research & Consulting at TransUnion in the UK, said: “We’re seeing encouraging signs of financial resilience and renewed consumer confidence, despite the economic challenges faced over the last few years. With the uplift in consumer optimism and the increase in credit demand, competition is increasing and lenders should leverage data and analytics to personalise credit offerings, deepen consumer trust, and drive innovation. Through a data-driven approach, lenders can build a more inclusive and resilient credit ecosystem for the future.”

The latest survey data reveals consumers are increasingly using credit to manage everyday spending and lifestyle expenses. The top uses for credit are groceries (31%) and retail (29%) alongside discretionary expenses, including dining out (24%), holidays (23%), and entertainment (19%).

While almost half (45%) prefer to use credit cards for short-term borrowing, the rapid expansion of Buy Now, Pay Later (BNPL) in the UK has led to this credit product now being used by 12% of consumers. The most common purchases using BNPL include discretionary spending like tech (35%), household appliances (32%), and furniture (26%). However, some consumers are spreading the cost of everyday essentials, such as groceries (10%), suggesting a reliance on short-term liquidity rather than convenience.

With competition intensifying within the credit market, customer loyalty has weakened. A third (33%) have switched lenders to secure better rates, and 60% of consumers seeking new credit have shopped around for new providers. However, service remains key: one in 10 (10%) value customer experience over rates, and 8% prefer to stick to a brand they already hold accounts with.

As consumer credit demand grows, so is credit awareness and education. Nearly two in five (39%) check their credit report at least once a month, most commonly to try to improve their credit score (38%), ensure accuracy (38%), and explore credit offers they might qualify for (17%).^iv

For more information on the Consumer Credit Report 2025, please visit the TransUnion website.

Notes:

Unless otherwise stated, all figures are from a nationally representative sample of 2,000 UK adults aged 18+. The data was commissioned by TransUnion and conducted in May 2025 by OnePoll Research.

ⁱ, ⁱⁱⁱ TransUnion Custom Analytics; Data Source: Bank of England, Money and Credit Database, Data published May 2025

ⁱⁱ, ^iiiV According to TransUnion’s Q1 2025 Consumer Pulse Survey

·       Baby Boomers are the most likely to apply for a new credit card, as 46% feel their income isn’t keeping up with inflation

·       34% of UK consumers are currently unaware of their credit score

New research by TransUnion, a global information and insights company has revealed that over the last 12 months, there has been an 8% increase in the number of UK consumers who said they have a credit card, yet a third say they don’t know their credit score.  

As inflation remains above the Bank of England’s 2% target, UK adults are even more concerned about the impact on the cost of everyday goods than they were at the peak of inflation in Q1 2024 – according to findings from TransUnion. TransUnion’s Q1 2025 Consumer Pulse Study found inflation for everyday goods is still by far the biggest household financial concern for the next six months at 56%, up six percentage points from the previous quarter and a percentage point from Q1 2024.   

Amid rising costs, nearly half (47%) of UK adults who said they plan to apply for new credit or to refinance existing credit in the next year, plan to apply for a new credit card, while 17% intend to request a credit limit increase for an existing card.  

James O’Donnell, director of research & consulting at TransUnion in the UK, said: “Even though inflation is significantly down from where it was at its peak, UK consumers are still feeling the squeeze. For many people, income hasn’t caught up with rising costs and as household price inflation climbs up to 3.7%,ⁱ turning to credit can help make ends meet. As economic uncertainty continues in 2025, businesses and financial institutions must ensure that consumers can access the appropriate credit products to manage their finances and build resilience, without falling into unmanageable debt.” 

The latest TransUnion Consumer Pulse Survey finds more than three-quarters (77%) of consumers believe that access to credit is important to achieving their financial goals – rising to 93% of Millennials and 97% of Gen Z. 

Credit card adoption is spread unevenly across generations. Across generations surveyed, Gen Z are the least likely to own a credit card, with only 40% saying they’d ever had one, compared to the most at over three in five (73%) of Gen X and Baby Boomers. In fact, 59% of Baby Boomers who said they plan to apply for new or refinance existing credit in the next year, report that they will apply for a new credit card in that time period (the most among generations), whereas less than half of Gen Z (47%) and Millennials (41%) aim to do so (the least).  

This divide may be driven by divergence in income growth. Almost half (46%) of Baby Boomers feel their household income isn’t keeping up with inflation, suggesting an increased reliance on credit usage. Meanwhile, a third (33%) of Millennials and nearly half (46%) of Gen Z believe their income is growing in line with inflation. 

With consumers increasingly applying for credit, many are checking their credit reports to try to improve their credit scores. Facing major financial milestones such as buying their first home, 47% of Millennials who said they monitor their credit, said they do so in order to improve their credit score – the highest of generations surveyed.  

Despite their crucial role in credit applications and access to financial products, over a third (34%) of UK consumers said they don’t know what their credit score is. This rises to 49% among Baby Boomers and 36% for Gen X, the highest among generations surveyed. In fact, less than a quarter (23%) of Baby Boomers who said they check their credit score are doing so to try to improve it, the lowest among generations surveyed. This is possibly due to their more established credit histories.  

Earlier this year, TransUnion released consumer research that showed one in five UK adults would consider themselves financially vulnerable. The same research found that 10% of UK adults report they wouldn’t be able to maintain their current lifestyle without credit or financing options, yet many still struggle to access credit with 9% indicating having been turned down within the last 12 months.ⁱⁱ 

TransUnion’s ebook Consumer Vulnerability: Help Improve Customer Outcomes with New Data Concepts, can help guide financial providers to understand ‘early warning’ indicators. This can help them to identify vulnerable consumers, what vulnerability means, and how consumers believe they are impacted by it. 

For more information on TransUnion’s insights and products, visit TransUnion’s website.  

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)

·       Two in five (40%) Gen Z consumers expect they will be unable to pay their current bills and loans in full compared to 10% of Baby Boomers

·       However, twice as many Gen Z (68%) consumers are optimistic about the future of their household finances in the next 12 months compared to Gen X (33%).

·       As housing costs continue to squeeze consumers, 57% of Millennials rank rent or mortgage as one of their top concerns, while only 24% of Baby Boomers feel the same.

Consumer optimism about household finances has fallen, according to data from TransUnion, a global information and insights company, released as part of its Q4 2024 UK Consumer Pulse report.

The latest survey data finds that just 44% of consumers are optimistic about their household finances in the next 12 months, dropping by two percentage points from the previous quarter. This bucks the trend of rising optimism since Q4 2023.

Financial pressures are affecting consumer attitudes to spending

James O’Donnell, Director of Research & Consulting at TransUnion in the UK, comments: “As household price inflation climbs back up to 3.2%, in conjunction with higher winter energy prices and a slowing jobs market, many consumers are feeling the squeeze and responding accordingly with their wallets. It’s not surprising that we’re seeing attitudes, credit behaviours and spending diverge between generations and income groups. It’s therefore crucial that businesses and financial institutions understand and adapt to the evolving financial landscape."

With inflation and cost-of-living pressures, not surprisingly, consumer spend intentions reflected those financial pressures with nearly half (43%) of respondents planning to decrease discretionary spending, including dining out, travel and entertainment, in the next 3 months.

The report found that price pressures are having a deeply uneven impact across generational lines. Two in five (40%) Gen Z consumers expect they will be unable to pay their current bills and loans in full, compared to 10% of Baby Boomers. Meanwhile, more than one in 10 (16%) Millennials said they increased their usage of available credit in the last three months to meet shortfalls in their finances.

Increasing housing costs are further driving the generational divide

The generational divide in financial health is partly driven by the increasing housing costs. While 57% of Millennials rank rent or mortgage as one of their top concerns, only 24% of Baby Boomers feel the same.

Despite these prevailing housing and price pressures, the Consumer Pulse Report shows that consumer optimism is somewhat skewed toward the younger generations. Twice as many Gen Z (68%) consumers are optimistic about the future of their household finances in the next 12 months compared to Gen X (33%).

This optimism divide may be driven by divergence in income growth; 51% of Gen Z and 36% of Millennials said their incomes are keeping up with the rate of inflation, compared to only 20% of Gen X. Gen Z was also the only generation that said they plan to increase discretionary spend more than they plan to decrease it over the next three months. Meanwhile, more than one in 10 (16%) Millennials have increased their usage of available credit in the last three months to meet shortfalls in their finances.

For more information about the Consumer Pulse study findings, please visit the TransUnion website.

Notes:

Unless otherwise stated, all figures are from TransUnion’s Consumer Pulse study, which is based on the survey of 1,000 adults in the UK, conducted between 25 September and 4 October 2024.

Generations are defined in this research as follows: Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby Boomers, age 59 and above.

Low- and middle-income earners are defined as consumers earning below £79,999 annually.

“TransUnion’s Q3 2024 Consumer Pulse survey revealed that 85% of consumers rank inflation as one of their top three concerns over the next three months. Many are continuing to feel the impacts of high borrowing costs, and this growing dependency on credit points to a need for support to promote financial resilience among UK households.

“As consumers continue to face uncertainty, responsible lending and data-driven decision-making are more essential than ever. Financial institutions must use up-to-date consumer insights to better understand borrowers’ financial health, supporting sustainable financial wellbeing amid ongoing economic challenges.”

Sam Welch, Chief Revenue Officer at TransUnion in the UK, said: “Bringing together industry leaders through expert-led sessions and tailored breakouts for different sectors, this year’s UK Summit drove a lot of interesting discussions around industry challenges and the outlook for growth as well as empowering and educating consumers. By leveraging robust data to help inform smarter decisions for growth, we at TransUnion are helping to create a financial landscape that's transparent, inclusive and built on trust.”

TransUnion hosted a series of panel discussions, breakout sessions and invited industry leaders to discuss some of the most pressing topics in the current financial services sector. Three of the key takeaways from the event were:

1.     Consumer optimism is bouncing back

The ongoing cost-of-living crisis remains front of mind for consumers even as inflation tapers-off. TransUnion’s Q3 2024 Consumer Pulse survey revealed that for 85% of consumers, inflation is one of their top three concerns over the next three months.

Yet, consumer sentiment has improved, driven by growing wages, particularly the National Minimum Wage. As attitudes to spending relax, 46% of consumers are optimistic about their household finances over the next twelve months.

As consumer optimism bounces back and the market becomes more competitive, lenders should foster deeper connections with existing customers by enhancing user experience and using consumer credit monitoring to help boost engagement.

2.       Safeguard against potential fraud without compromising customer experience

Third-party fraud continues to be a major area of concern as consumers increasingly fall prey to sophisticated attacks. Over the last 12 months, 2.4 million fraud incidents involved a monetary loss,ⁱ with 56% of third-party fraud transactions sitting with Gen Z and Millennials.ⁱⁱ

Businesses face the delicate balancing act of stopping fraud in real-time while also making it as simple as possible for their customers to transact with them. Nearly three-quarters (74%) of consumers want to be confident that their personal data will not be compromised, while over half (56%) look for an easy log-in authentication process. By leveraging fraud analytics to identify suspicious behaviours using risk insights, device information and behavioural analytics, businesses can help stop fraud in real-time, without disrupting the user experience for legitimate customers.

3.     Empower consumers through credit monitoring and education

Within the context of the cost-of-living crisis and growing fraud risk, financial awareness is key to strengthening consumer trust. 21 million consumers across the UK already monitor their credit report,ⁱⁱⁱ with Gen Z and Millennials more likely to use credit monitoring than older generations.^iv

Credit monitoring provides consumers with a clearer view of their overall financial picture, with nearly two in five (39%) credit monitors learning to manage their credit score, while 29% were able to secure better credit offers and one in five (20%) paid down debt.

With nearly two-thirds (64%) of consumers likely to use credit monitoring if offered at no cost, lenders have a prime opportunity to empower consumers with credit education tools that can drive financial inclusion while improving access to credit and help protect against fraud.

Commenting on the takeaways from the summit, James O’Donnell, director of research & consulting at TransUnion in the UK, noted that: “Our data reveals an increasingly positive picture of consumer financial health. Despite the challenging macro environment, the majority of consumers remain resilient, and are optimistic about the future of their personal finances. Much of this optimism is emerging on the back of lower inflation pressure and dropping interest rates. Ultimately, we’re getting a sense of relief from consumers and lenders alike.

“As we move into 2025, lenders now have the opportunity to foster deeper connections and service the unmet demand for credit which we’ve observed over the last two years. Though other pressures remain, with high consumer expectations for ease of use clashing with the need to protect consumers from increasing levels of third party fraud. By tapping into the right data at the right time, businesses can secure actionable insights and deliver friction right customer experiences that drive real impact.”

To learn more about TransUnion’s products and solutions visit the website

Notes:

ⁱ ONS, Crime in England and Wales, Statistical Bulletin, released 24 July 2024, for year ending March 2024

ⁱⁱ Cifas data, 2022-2023

ⁱⁱⁱ TransUnion Consumer Credit Monitoring Population

^iv TransUnion Consumer Credit Monitoring Report

“The Bank of England’s latest Money and Credit report for August 2024 shows a continued rise in mortgage borrowing, with individuals borrowing a net £2.9 billion, slightly up from £2.8 billion in July, which continues to be the highest since November 2022. Mortgage approvals for house purchases remain strong, with an increase from 62,500 in July to 64,900 in August – the highest level since August 2022. 

“The increase in house purchase activity should also be taken in context of normal market seasonality. We’re moving away from peak summer activity into the winter low period. The question becomes one of whether borrowing activity will grow over Q4 due to lower interest rates, thus bucking the winter seasonal trend? We will be watching this closely over the next few months. 

“Consumer credit borrowing remains strong, with net borrowing reaching £1.3 billion, building on the £1.2 billion reported in July, but the rate of growth appears to be slowing down with August net borrowing slightly dropping to 7.6% year-on-year from the 7.8% seen in July. This indicates that we’re seeing balance growth stabilise on the back of lower price inflation in recent months across most consumer goods and services, and consumers might finally be finding their feet on stable ground. With these trends, lenders must remain vigilant in managing risk and ensuring responsible lending practices as these economic conditions continue to evolve.” 

The latest survey, released as part of TransUnion’s Q2 2024 Consumer Pulse report, finds that 43% of consumers are optimistic about their household finances in the next 12 months. This shows a continued rebound in confidence and is the highest level of optimism TransUnion has recorded since Q4 2021 (48%). 

James Robinson, managing director of consumer interactive at TransUnion in the UK, said: “As inflation hits the Bank of England's target of 2% for the first time in almost three years, there are signs of hope among consumers that the coming year will bring an easing of financial pressures. But the cost-of-living stresses that built up in recent years won’t be disappearing right away and that legacy will affect some households more severely than others, meaning we’re seeing a complex, divided picture of recovery.” 

Consumer optimism is not being felt equally across the board, with a steep generational divide both in terms of actual financial health and consumer sentiment. Bucking the overall trend, 73% of Gen X were not optimistic about their household finances in the next 12 months.   

This divide might be explained by reported differences in income growth; 37% of Millennials said their household incomes were keeping up with the rate of inflation, the highest of any generation – this is opposed to only 15% of Gen X, the lowest of any generation. 

These attitudes reflect ONS figures suggesting any real-terms income gains are marginal. With wage growth slightly above current inflation levels at 2.3% year-over-year (YoY) as of April 2024,ⁱ financial stresses persist in the present for many, even considering growing optimism. 

Meanwhile, housing (mortgage and rent costs) ranked amongst the top concerns affecting consumer household finances in the next six months for all generations except Baby Boomers. In fact, 68% of Gen Z ranked housing costs in their top three financial concerns, along with a majority of Millennials and Gen X. 

The impact of rental costs looks to be landing squarely on low earners, who are significantly more likely to be tenants.ⁱⁱ As such, it‘s important not to overlook signs of financial vulnerability, even as the macro picture suggests hope for the future. 

Against this backdrop, optimism is yet to translate to spending for many consumers. Nearly half (47%) of respondents plan to decrease spending on discretionary items like dining out, travel, entertainment, while more than a third won’t spend as much on large purchases like appliances and cars (38%), or retail purchases like clothing, electronics or durable goods (36%) in the next three months. 

Notes:

Unless otherwise stated, all figures are from TransUnion’s Consumer Pulse study, which is based on a survey of 1,000 adults in the UK between 1 and 7 May 2024.  

Generations are defined in this research as follows: Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby Boomers, age 59 and above. 

ⁱ Office of National Statistics: Employment in the UK - Office for National Statistics

ⁱⁱ In TransUnion’s Q2 2024 Consumer Pulse survey, 45% of low earners said they were currently paying rent compared to 28% of high earners. In this survey, low earners are defined as households with an income of less than £30k per year, and high earners as those with an income of £80k or more per year.

VRS offers consumers a single platform to register their vulnerable status, sparing them from repetitive and challenging conversations with various lenders and organisations. This partnership allows TransUnion clients access to an independent register of vulnerable individuals, empowering them to identify vulnerabilities and make informed decisions in alignment with regulatory guidance.

Kelli Fielding, chief product officer at TransUnion in the UK, comments: “Our collaboration with VRS marks a significant leap in understanding consumer vulnerabilities. Our data shows that financial and non-financial vulnerabilities are linked and by combining these datasets, we empower lenders to offer tailored support. This underscores our commitment to Information for Good, driving positive change and better outcomes for all."

As the only credit reference agency to partner with VRS, TransUnion’s pioneering approach allows an enhanced understanding of consumer vulnerabilities. By combining financial and non-financial data, TransUnion offers a detailed and distinctive view of individuals' vulnerability profiles, tailoring services to their needs. This collaboration supports regulators' emphasis on customer service excellence, providing clients with deeper insights to make informed decisions and enhance outcomes for consumers. 

Rooted in its commitment to supporting vulnerable consumers, the partnership will deliver actionable insights that drive positive change and help protect vulnerable consumers. By integrating VRS data, TransUnion provides a nuanced understanding of consumer vulnerability, surpassing traditional affordability assessments and fostering trust, whilst facilitating positive outcomes for lenders and their customers.

Helen Lord, chief executive officer at VRS, added: “Partnering with TransUnion signifies a pivotal moment in our mission to support vulnerable consumers. By uniting our efforts, we're streamlining consumer access to vital assistance while fostering a more inclusive financial landscape. This collaboration exemplifies our dedication to empowering individuals and promoting positive outcomes."

To find out more about TransUnion, visit https://www.transunion.co.uk/.

The awards, based on customer feedback, place the information and insights company as the UK’s industry leader of choice, and highlighted TransUnion’s strengths in their customer-facing approach.  

Kelli Fielding, chief product officer for TransUnion in the UK, commented on the win: “We’re honoured to have been named as Credit Information Partner of the Year for the fourth time in a row. We’re committed to supporting clients and the customers they serve and have seen great success working with our partners to help even more people across the UK better understand their credit information, to support financial wellbeing as well as driving greater financial inclusion. Our aim at TransUnion is to make trust possible between businesses and consumers. This recognition highlights this achievement and is a reflection of the continued dedication of our teams, both in building relationships and creating innovative new products to address changing consumer needs. A huge thank you to all that voted for us.” 

Jacqueline Dewey, chief executive officer for Smart Money People, said: “TransUnion has firmly positioned itself as a leader in the credit information industry. Our reviews show TransUnion has a customer-focused approach which means their customers talk highly about their experience of the service. TransUnion has won this award for the fourth year in a row which is a huge achievement from the team.” 

The Consumer Credit Awards are run by Smart Money People to increase trust and transparency in financial services, by giving consumers and clients the chance to have their say. 

For more about TransUnion's services, visit www.transunion.co.uk 

In the new study, TransUnion has identified and defined three primary categories into which the majority of people who regularly check their credit information fall. First are 'Credit Improvers', comprising 33% of consumers who actively monitor their credit information to help enhance their credit scores. Following closely, are the 'Credit Managers', representing 25% of credit monitors, who prioritise debt management and fraud protection. Lastly, the 'Credit Seekers' make up 20% of this group, who demonstrate a specific interest in opening new credit accounts in the near future.  

 James Robinson, managing director of consumer interactive at TransUnion in the UK, said: “Our Consumer Credit Monitoring Report highlights the importance of financial education and the positive impact of credit monitoring on credit profiles, access to credit, and the ability to pay down debt. By providing consumers with a clearer view of their overall financial picture, credit monitoring can also support financial inclusion and personal empowerment, whilst being a valuable tool to detect fraud. Rooted in our commitment to Information for Good, we ensure that consumers have the support and services they need for their financial well-being, including monitoring their credit information.”  

The new study revealed that Gen Z and Millennials are more likely to monitor their credit report than older generations.ⁱ However, consumers in all age groups are becoming increasingly aware of the roles that financial education and positive credit history play in accessing credit. TransUnion’s Q1 2024 Consumer Pulse study found that 78% of UK consumers believe that monitoring their credit report is important, whilst 77% of respondents also thought access to credit and lending products is crucial to achieving their financial goals.ⁱⁱ 

As part of its commitment to ‘Information for Good’, TransUnion’s CreditView solution gives consumers free access to credit information, education and monitoring tools. By empowering consumers to better understand and manage their financial status, credit monitoring enables greater financial inclusion and personal empowerment. 

 Understanding the needs and motivations of consumers can be beneficial to lenders, as it helps them to build personalised journeys for consumers to reach their credit monitoring goals and foster deeper relationships due to an improved customer experience. The report revealed that 29% of consumers said if a lender offered free credit monitoring services, they would prefer this lender over others when opening new products. 

Click here for more information on the Consumer Credit Monitoring Report.

Click here to learn more about CreditView. 

 Note to editors 

Unless otherwise stated, all figures are from TransUnion’s Consumer Credit Monitoring Report, which is based on data comparing the credit monitoring population vs the UK credit active population using a random sample. The report data was compiled in Q4 2023 

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. 

Appendix 

Further information on the three primary categories of credit monitors, as defined by TransUnion, is below. 

Credit Improvers aim to increase scores and improve payment behaviour 

With a longer-term goal of accessing expanded credit, Credit Improvers use credit monitoring to increase their score. The study found that credit monitors who improved their scores within nine months were more likely to achieve greater score improvements than the overall UK credit active population.  

Credit Improvers may also aim to improve payment behaviour. The report data shows that UK consumers with subprime (poor) credit scores and at least one account in arrears when they began monitoring, were more likely to improve their payment status over their initial nine months of credit monitoring, compared to the same group within the UK credit active population. 

Credit Managers want to pay down debt and detect fraud 

Credit Managers seek to manage their existing credit and potentially reduce outstanding debt balances. According to the survey, one in five (20%) respondents have used credit monitoring to pay down debts. A quarter (25%) of Credit Managers also monitor their credit reports to protect themselves against fraud, such as identity theft and account takeover. 

Credit Seekers can secure new credit 

Credit Seekers have a greater level of credit demand as they outpace the UK credit active population in new account openings during the first nine months of monitoring. Via credit monitoring, Credit Seekers can ensure their credit profiles will give them better prospects for securing approval for new credit, with 20% using monitoring to discover credit offers they might qualify for. 

Credit Seekers typically use credit to fulfill their ongoing spending needs, opting for consumption-led products, such as credit cards, personal loans and retail finance. During the first nine months of monitoring, Credit Seekers had 23% more open credit card accounts compared to 17% for the UK credit active population. 

^[1] Generations are defined as follows: Gen Z, born 1995–2005; Millennials, born 1980–1994. 

^[1] TransUnion’s Consumer Pulse study, which is based on the survey of 1,000 adults in the UK, conducted between 6 and 10 February 2024. 

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 latest Money and Credit report from the Bank of England gave hints at an increasingly positive outlook for 2024. Relatively low mortgage approvals for house purchases picked-up, reaching their highest level since September 2022. Effective interest rates on new mortgages also dipped to 4.73% in March. But it’s likely that this trend will slow in Q2, with major lenders announcing small upward adjustments in their mortgage rate offers. This represents a short-term re-alignment, we still expect rates to fall over the course of the year.

“March also saw a notable increase in net consumer credit borrowing, up £1.6 billion from £1.4 billion in February 2024. This increase was primarily driven by credit card borrowing, rising £0.7 billion in March. Credit card balances grew 12.0% annually, exceeding inflation by a significant margin, lifting credit card balances above pre-COVID levels. Despite this increased consumer indebtedness, we’re seeing positive signs of consumer resilience, with the highest net-inflow of household deposits into banks and building societies since October 2022. This resilience is closely linked to the 6.0% annual wage growth reported in April.ⁱ

“This new data may show slight optimism but underscores the need for continued vigilance during shifts in economic patterns. Lenders must remain cautious and adaptable, ensuring responsible borrowing practices and protecting vulnerable consumers. Navigating these dynamics requires a proactive approach grounded in consumer protection, as well as financial stability."

Notes:

ⁱ Office for National Statistics Average weekly earnings in Great Britain: April 2024

A ground-breaking initiative aimed at promoting consumer education and financial inclusion, the 2025 Fintech Pledge aims to drive 25 million actions to help improve people's financial resilience by 2025. These actions stretch across five key pillars: savings, credit, debt, bills and benefits and include encouraging consumers to sign up for credit building tools and creating savings pots to help better manage their finances. This collective effort aims to bolster the ability of UK consumers to navigate financial challenges and help mitigate the effects of the rising cost of living.

James Robinson, managing director of consumer interactive at TransUnion in the UK, says: “We’re excited to be joining like-minded organisations to help shape a financial landscape where all consumers have access to the right support and services they need for their financial wellbeing. We know that current economic challenges are putting significant pressure on households across the UK. At TransUnion we are committed to providing people from all walks of life with the necessary tools and knowledge to help them make informed and responsible financial decisions as they navigate these challenges.”

Recent TransUnion research found that consumers are becoming increasingly aware of the importance of understanding their credit reports and score. Over three quarters (78%) of UK adults believe monitoring their credit report is important and 41% are monitoring their credit report at least monthly.ⁱ

A key way that TransUnion supports consumer education is through CreditView – a solution that aims to ensure consumers have access to credit information, education and tools to monitor, understand and help them learn how to improve their financial status, as well as helping finance providers build consumer trust and tailor credit offers to individual needs.

Empowering consumers to improve their financial resilience is particularly important following a period of rising inflation and subsequent price surges in essentials like energy bills, petrol, and groceries. With economic factors having intensified the strain on household finances, initiatives like the 2025 Fintech Pledge are bringing together the fintech industry to help protect consumers as they manage the long-term impacts of this financial shock.

Notes:

ⁱ TransUnion’s Consumer Pulse study, which is based on the survey of 1,000 adults in the UK, conducted in February 2024

As signs suggest significantly improved economic fundamentals, consumers are reporting more positive sentiment. Overall, 37% of UK consumers are feeling optimistic about their household finances, up from just 28% in Q4 2022. The study also shows that Gen Z is leading this optimism, with over half (53%) feeling positive about their finances compared to 45% in the previous year.ⁱ

James Robinson, managing director of consumer interactive at TransUnion in the UK, commented: “While inflationary pressures on individuals have only recently begun to ease, it’s encouraging to see the uplift in consumer sentiment, indicating a gradual positive shift in financial outlook. However, this may take a while to translate into people feeling financially stronger, as we continue to see reports of cutting back on discretionary spend. Households with lower incomes, in particular, will likely need more support as the cost of living crisis persists.”

The figures show that while optimism is not universal, the proportion of UK consumers that expect their household income to grow within the next 12 months increased by four percentage points compared to Q3 2023.ⁱⁱ  In the meantime, the percentage of those who didn’t know how they were going to pay their current bills or loans decreased by six percentage points among those who said they’ll be unable to pay at least one of their current bills and loans in full.ⁱⁱⁱ

Recessionary behaviours persist

Recent months have seen energy prices in the UK stabilise^iv and October 2023 saw a decline in inflation rates to 4.7% from 6.3% in September.^v Crucially for consumers, inflation is also anticipated to continue decreasing, enabling the Bank of England to maintain a steady policy rate of 5.25%.^vi

Despite these shifts, a majority (60%) of consumers still believe that we’re in a recession or will be in one by the end of this year. While this is a significant improvement from 72% in Q3 2023, it reaffirms that consumers continue to remain vigilant, and that we may see a delay in any significant changes in consumer spending behaviour.

An indicative example is that almost seven in 10 (68%) of those who said we’re currently in a recession or heading for one by the end of this year, are preparing by reducing spending, building up savings (39%) and paying down their debts (22%). This cautious consumer response is likely to impact retail and economic performance, especially during the upcoming holiday season.

For more information on the Consumer Pulse study findings, please visit the TransUnion website.

Notes:

ⁱ TransUnion’s Q4 2022 Consumer Pulse study which is based on a survey of 981 adults in the UK conducted  3–14 Nov. 2022

ⁱⁱ 36.6% of consumers in the Q4 2023 TransUnion Consumer Pulse survey said they expect their household income to increase in the next 12 months. This is compared to 32.3% in the Q3 2023 Consumer Pulse survey.

ⁱⁱⁱ 11% of consumers in the Q4 2023 TransUnion Consumer Pulse survey said they don’t know how they are going to pay their current bills or loans among those who said they’ll be unable to pay at least one of their current bills and loans in full. This is compared to 17% in the Q3 2023 Consumer Pulse study.

^iv Office for National Statistics: Cost of living insights: Energy – 17 November 2023

^v Consumer Prices Index including owner occupiers' housing costs (CPIH)

^vi Office for National Statistics: Consumer price inflation, UK: October 2023

Dominic Goslett, executive director at TransUnion in the UK, says: “This year’s TransUnion Future Summit welcomed many clients and industry leaders, and drove a lot of thought-provoking conversations around tackling vulnerabilities and reshaping consumer finance through empowerment and education. We at TransUnion are using the power of robust data to address emerging financial challenges and lead the charge for a financial landscape that's transparent, inclusive and built on trust.”

TransUnion hosted an array of open discussions and panel debates on the most pressing topics in the current financial market. Key takeaways from the day included:

1.     Knowing your customer and identifying consumer vulnerabilities is key

The session on 'Deciphering Consumer Vulnerability' delved into how the industry aims to offer consumers expanded financial choices – exploring the idea that better understanding customers and identifying vulnerabilities is the cornerstone of building a robust and fair financial system.

According to the FCA’s Financial Lives Survey, 47% of the population have at least one characteristic of vulnerability. Therefore, utilising behavioural signals and vulnerability models to categorise customers becomes essential in helping providers make the right decisions, protect customers and prevent financial harm.

2.     Credit education strengthens consumer trust and engagement

Particularly relevant as consumers face the cost of living crisis, the masterclass ‘Leveraging​ Credit Education to Strengthen Customer Loyalty, Trust & Engagement’ highlighted the importance of financial awareness in enhancing consumer trust and improving financial wellbeing.

TransUnion’s recent Consumer Pulseⁱ showed that 75% of those who frequently monitor their credit report feel more in control of their financial health. This means that credit education must remain a focus for finance providers, helping to empower consumers and give them a greater understanding of credit information and how it’s used.

3.     Enhanced consumer experiences require advanced risk assessment

TransUnion’s Consumer Pulse survey found that of those targeted by fraud, over one in 10 (11%) said they had been affected by identity theft.ⁱ While businesses strive to detect potential fraud, they also need to ensure it is as simple as possible for their customers to transact with confidence.

So, as pointed out during the panel discussion ‘A Modern Identity Crisis: ​How The Digital Age Blurs The Lines Between Trust, Risk and Authenticity​’, being able to provide enhanced consumer experiences demands a delicate balancing act. This includes leveraging fraud analytics and cutting-edge device and behavioural insights as well as the latest technology advancements in document verification to help stop fraud in real time, while limiting the friction in the user experience for genuine customers.

4.     Understanding Generation Z credit consumers is paramount for future growth 

Gen Z represents a growing proportion of the UK’s credit eligible population that is looking to open new credit at a higher rate than other generations. TransUnion's Consumer Pulse study found that 44% of Gen Z individuals are planning to open new credit or refinance existing lines within the next year – well above the Millennials in second at 33%.ⁱ

The session ‘Understanding Generation Z Credit Consumers’ emphasised that taking an educational approach will be essential to building trust among Gen Z consumers. To effectively engage with them, lenders should prioritise technologically advanced credit and affordability assessments that ensure streamlined user experiences, whilst also focusing on raising awareness of the various credit options and encouraging good credit habits.

To learn more about TransUnion’s products and solutions visit the website.

Notes:

ⁱ TransUnion’s Consumer Pulse study is based on the survey of 1,000 adults in the UK, conducted in 6-17 July, 2023. 

The feature provides customers with tools and insights to help them better understand their credit score and factors that impact it. On average, 49% of Aqua Coach users improve their credit scores within the first six months. Of those, 16% of users increased their scores to the ‘good’ or ‘excellent’ range. 

As a credit builder card, Aqua has helped millions of people to improve their credit reports or rebuild their scores after a bump in the road. The Aqua Coach feature acts as a guide, giving customers a real-time view of their TransUnion credit score through the Aqua app. Other features include the Score Simulator which lets customers see how actions such as adding a new credit card, missing a payment or taking out a mortgage could impact their TransUnion credit score.  

In addition, customers are given full access to their TransUnion credit report for free, allowing them to examine their files to check for possible fraudulent transactions, and identify any errors that may be unfairly impacting their score. 

James Robinson, managing director of consumer interactive at TransUnion in the UK, said: “We know that over half (54%) of UK consumers are now monitoring their credit report and score at least quarterly,ⁱ and our partnership with Aqua Coach is helping to spread the message about the importance of understanding credit information and how it’s used. We’re delighted to see the success of Aqua Coach as it empowers Aqua customers to take control of their financial wellbeing and helps them improve their financial standing.” 

Sharvan Selvan, commercial director of Aqua Coach, said: “Credit scores play an important role in helping people achieve their life goals. As a credit builder, the Aqua app has been designed to give people the tools and insights they need to build their scores, and easily understand the behaviours needed to improve it. The fact that over half a million customers have signed up to Aqua Coach, and nearly half of those use it at least once a month is testament to the value it gives customers.” 

Customers also have use of a repayment calculator that helps them understand how long it will take them to pay back their balance, based on different payment amounts, and the savings on interest made as a result. Not only does this help customers see the benefits of paying more when they can, but also encourages customers to better manage their credit utilisation which is an important factor in calculating credit scores. 

Notes:

ⁱ TransUnion’s Consumer Pulse Q2 2023, based on the survey of 1,000 adults in the UK, conducted 4–9 May, 2023  

The awards are based on customer feedback, placing the information and insights company as the UK’s industry leader of choice, and highlighting TransUnion’s strengths in customer service, relationship building, product innovation and credit education.

Satrajit “Satty” Saha, CEO of TransUnion in the UK said: “We’re delighted to have been named as Credit Information Partner of the Year for the third time in a row. We’ve supported our clients – and the consumers they serve – through challenging times as the UK navigates ongoing financial uncertainty, so this means a lot to us. Retaining this recognition is also a reflection of the continued dedication of our teams, both in building relationships and creating innovative new products to address changing consumer needs. A huge thank you to all that voted for us.”

TransUnion supports businesses across a range of sectors, including financial services, retail, gaming and insurance, to deliver the best outcomes for their customers. TransUnion also works with a number of partners – from leading banks to credit score service providers – to give consumers free access to their TransUnion credit report and score via its CreditView solution.

“We aim to make trust possible between businesses and consumers, so we’re thrilled to be called out by our customers as a trusted partner in the feedback shared,” said James Robinson, TransUnion’s managing director of consumer interactive. “We’re committed to helping businesses and consumers benefit from the insights that credit information can provide and have seen great success working with our partners to help even more people across the UK better understand their credit information, to support financial wellbeing as well as driving greater financial inclusion.”

Feedback shared from customers that voted in the awards also highlighted TransUnion’s work to drive financial education in wider communities, citing: “TransUnion makes a proactive effort each year to not only partner with clients on all things credit, but also to educate them and others in the community.”

In the past year, TransUnion has extended its credit education initiative to schools nationwide, as well as universities, teaching young people about credit information with its Credit Scores Explained programme.

The Consumer Credit Awards are run by Smart Money People to increase trust and transparency in financial services, by giving consumers and clients the chance to have their say.

For more about TransUnion's services, visit www.transunion.co.uk

Whatever the next step, a lot of these young people will be managing their own budget for the first time and understanding credit information is a key part of that. Whether it’s getting a new mobile phone contract or applying for a credit card, having a good credit score can help you get the best interest rates. Gen Z are savvy to this, with seven in 10 (70%) young people aged 18 to 24 checking their credit score at least once a month, according to research from leading UK credit reference agency, TransUnion. 

For those heading to university, it can be costly, with typical fees at £9,250 a yearⁱⁱ and living costs now averaging £924ⁱⁱⁱ each month.  Of those that are currently in full-time education, TransUnion found that 41% have already taken out some credit whilst studying and a further 30% plan to apply for credit soon. 

James Robinson, TransUnion’s managing director of consumer interactive in the UK, said: “Over a quarter (26%) of students have had trouble paying rent or bills, according to our research, so it’s really important they understand their credit report and score and how it works – and realise the impact that a missed payment can have. It’s very positive to see the number of Gen Z that are checking their credit score frequently but there are still a few misconceptions.” 

An individual’s credit history starts being compiled when they turn 18 and become eligible to vote. It’s a detailed picture of financial status, based on information supplied on a regular basis to credit reference agencies, like TransUnion. This comes from banks, credit card providers, utilities companies, leasing and hire companies, retailers and other companies which provide credit.  

Mistakenly, a quarter (25%) of young adults think that student loans are recorded in their credit report.  And less than a third (32%) are aware that using a high proportion of your available credit can negatively affect your credit score.  

Most young people are checking their credit score through online credit monitoring services, with four in 10 (42%) citing these. Over a third (36%) check their credit score with their main finance provider, for example via bank app, whilst a quarter (25%) access their credit score through their credit card provider.  

Whilst most (78%) are on the electoral register – although women are almost twice as likely to register than men according to the survey^iv – the majority of young adults (71%) don’t realise this helps to strengthen credit scores. 

Worryingly, 62% of Gen Z don’t realise that checking your credit report regularly can help protect you from potential fraud, yet more than one in five (23%) students surveyed said they had been targeted by scams or phishing whilst at college or university, with a further 35% having lost phones or laptops, or had them stolen.  

James Robinson continued: “Credit reports are also used for identity checks to help prevent fraud and if someone tries to use your identity in a scam, your credit report may be the first place you’ll spot it. Under 21s are often a target for fraudsters – for example they’re more likely to be victims of impersonation for online retail than any other age group according to a recent industry report^v – so it’s essential they’re able to recognise some of the warning signs and can spot suspicious activity to try and prevent it.” 

TransUnion has tailored some tips for young people and students as the new academic year beckons: 

- Don’t make lots of applications for finance over a short period – 64% of Gen Z don't realise this can negatively impact your credit score. Knowing your own credit score will help you understand what finance you’re eligible for before you apply 

- Pay bills on time – If you’re sharing a house for the first time, think carefully about bills. You’ll likely need a named contact for utilities, like water and electricity, as you’ll receive one bill per household. Agree how to split the bills and how payments will be made. If bills are late or missed, this can have a negative impact on your credit score, yet more than half (57%) of Gen Z are unaware of this 

- Budget and plan – For those in halls, your college or university will usually take rent payments termly by direct debit so make sure the money is there when that date comes around. A failed direct debit could incur charges with your bank, as well as impacting your credit score, and may be in breach of your rent contract as well 

- Check your credit score regularly – Keeping an eye on your credit score is a great way of maintaining focus on your financial health and you’ll find tools and tips with guidance on learning how to build your score  

- Don’t be reliant on your overdraft or credit limits – Whilst student loans are not reported on your credit report, things like credit cards, overdrafts and personal loans will all start contributing to your credit score. Try to keep balances low or paid in full on overdraft and credit facilities and be sure to make the regular repayments 

- Be wary of scams – If it seems too good to be true, it probably is; such as unlikely offers like a free holiday. Don’t follow any links but if you think it may be genuine, call the company directly on their official number and ask for information  

- Keep an eye out for signs of fraud – Being familiar with your credit report can help you monitor for potential fraudulent activity and spot anything unusual  

To check your TransUnion credit score and report regularly, sign up to one of the free online services such as: Credit Karma, MoneySuperMarket, or TotallyMoney. You can also obtain your statutory credit report directly from TransUnion’s website. 

 Notes: 

ⁱ According to UCAS, 319,570 UK 18-year-olds applied by the June 30 deadline. This is 2% down on last year but still the second highest on record

ⁱⁱ How much does it cost to study in the UK? | Top Universities

ⁱⁱⁱ Student Living Costs in the UK 2023 – Save the Student  

^iv Of 1,000 UK adults aged 18-14, 274 males were registered to vote, versus 498 females

^v Cifas Frauscape, July 2023 

The figures illustrate a contradictory picture of the financial landscape among UK consumers. On one hand, almost six in 10 (58%) have proactively taken steps to reduce their discretionary expenditures such as dining out, travel and entertainment, with plans for further cuts in the future. However, three quarters (75%) of consumers remained steadfast in their belief that they can pay their upcoming bills and loans in full.  

James Robinson, managing director of consumer interactive at TransUnion in the UK, commented: "Our recent Consumer Pulse study underlines a significant divergence within the population, indicating the varying effects of the cost of living crisis. Despite the challenges presented by rising interest rates and inflation, it’s encouraging to see that many consumers are displaying resilience, which bodes well for the future. As we navigate the evolving financial landscape, it’s crucial for businesses and financial institutions to understand and adapt to these distinct circumstances." 

Access to credit 

TransUnion’s study sheds light on the evolving dynamics of consumer access to credit. In fact, despite the fact that the majority of UK consumers (77%) believed access to credit and lending products was important to achieve financial goals, less than half (47%) said they had sufficient access. 

Additionally, the figures highlight the widespread recognition of the importance of credit report monitoring among UK consumers, as nearly eight in 10 (76%) acknowledged this. 

James Robinson continued: “Our study shows that over half (54%) of UK consumers are monitoring their credit report at least quarterly, reflecting a proactive approach towards maintaining a healthy credit standing and making informed financial decisions. We’re really pleased to see that consumers are starting to better understand their credit information and how it’s used. However, we want to drive further improvement in this area and are working closely with our partners, from high street banks to leading credit score providers, to achieve this.” 

For those seeking new credit, the most popular choice was credit cards, according to the latest figures, with 42% planning to apply for a credit card in the next 12 months. Buy now, pay later also proved popular, with more than two in 10 (22%) intending to use these services in the coming year. 

Personal loans and mortgage applications 

TransUnion’s research showed a significant decline in personal loan demand from UK consumers. Of those who said they’d apply for new credit or refinance existing credit in the next year, less than two in 10 (19%) planned to apply for a personal loan. That’s a considerable decrease from the 36% recorded during the same quarter last year.ⁱⁱ 

Similarly, there was a decrease in stated mortgage demand, as expected, from 21% in Q2 2022 to 16% in Q2 2023, most likely influenced by the current instability in the UK housing market and the substantial rise in mortgage rates. Given that interest rates have climbed, potential homebuyers and existing homeowners appear to be re-evaluating their decisions and adjusting their mortgage plans accordingly.  

Generational differences in financial outlook 

James ODonnell, director of research and consulting at TransUnion in the UK, added: "We’re seeing distinct differences in how cost of living impacts consumer credit demand among different generations. A significant portion of Gen Z and Millennials, 48% and 41% respectively, expressed their intentions to explore new credit opportunities, compared to 6% for Baby Boomers.ⁱⁱⁱ These findings provide valuable insights into how varying financial goals, sense of financial security, lifestyles and priorities contribute to the contrasting credit patterns observed across generations.” 

Despite the challenges posed by rising interest rates and inflation, more than six in 10 (63%) of UK Gen Z consumers expressed their intention to either increase or maintain their discretionary spending. This positive outlook indicates confidence in their financial stability and their belief that they can weather the storm caused by economic fluctuations, with more than a quarter (26%) of Gen Z respondents planning to increase their in-store or online retail shopping in the coming months.  

For more information on the Consumer Pulse study findings, please visit the TransUnion website. 

Notes:

Unless otherwise stated, all figures are from TransUnion’s Consumer Pulse study, which is based on the survey of 1,000 adults in the UK, conducted 4–9 May, 2023 

 ⁱ Monetary Policy Report - May 2023 | Bank of England

ⁱⁱ TransUnion‘s Consumer Pulse Q2 2022 study, based on survey of 1,004 adults was conducted 20 May–1 June, 2022

ⁱⁱⁱ Generations are defined as follows: Gen Z, born 1995–2005; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964.

This new service builds on the success of the bank’s existing tool, powered by TransUnion’s CreditView solution, which has already seen more than five million customers^[i] of NatWest and Royal Bank of Scotland access their TransUnion credit score for free via an interactive dashboard on the mobile banking app.

Now, TransUnion and NatWest Group are taking a significant step forward by expanding the availability of this service to all eligible UK consumers, regardless of where they bank.

James Robinson, managing director of consumer interactive at TransUnion in the UK, said: “Understanding credit information is essential nowadays, given the important role credit plays in our lives — from enabling everyday purchases to helping people achieve life goals, such as buying a car or home. With the introduction of NatWest’s groundbreaking new service, we’re helping to make credit information even more accessible, empowering consumers to take control of their financial wellbeing and supporting access to credit.”

Know Your Credit Score provides unlimited free access to TransUnion credit score information, enabling individuals to gain insights into their credit health and make informed financial decisions. TransUnion’s research shows 53% of those using this tool to monitor their credit profile improved their credit score over six months.^[ii]

Phil Sheehy, customer goal lead, short-term borrowing at NatWest, added: "We want to empower our customers and help them reach their financial goals. Through our partnership with TransUnion, we are helping our customers better understand their credit information and how it’s used. We are building on this by offering the benefits of this service to everyone, no matter where they bank, so they can enjoy the positive impact it brings."

Everyone, including non-NatWest customers,^[iii] can access Know Your Credit Score here: https://www.natwest.com/banking-with-natwest/know-your-credit-score.html

Find out more information on how TransUnion’s CreditView solution is empowering consumers to better understand their finances here.
 

Notes:

TransUnion and NatWest won Best Partnership of the Year at the National Credit Awards 2021 for the introduction of the free credit score service to all of the bank’s mobile banking app customers in the UK.

^[i] Data from NatWest, June 2023

^[ii] Based on TransUnion analysis, released in January 2022

^[iii] Free for ages 18+ with a UK, Channel Islands or Isle of Man address, following successful registration. Data provided by TransUnion

The Credit Awards celebrates best-in-class performance in the credit and financial services industry, rewarding innovation and industry-shaping solutions, with the wins highlighting TransUnion’s status as a leading UK credit reference agency.  

“We’re honoured to receive these accolades which are a reflection of our commitment to using information for good and helping businesses and consumers benefit from the insights that credit information can provide,” said Satrajit “Satty” Saha, CEO of TransUnion in the UK. “To be named Credit Information Provider of the Year for a third consecutive year is a fantastic affirmation of our place in the market and the pivotal role we play in supporting businesses across a range of sectors to deliver the best outcomes for their customers.  

“I’m also delighted that our work with Lloyds Banking Group to provide TransUnion credit scores directly to customers of Lloyds Bank, Halifax and Bank of Scotland has been recognised as the best partnership. Understanding credit information and how it’s used has become a really important life skill and in this way we can reach even more consumers and support access to finance.” 

Innovation and insights  

The award for Credit Information Provider of the Year acknowledged TransUnion’s achievements in several areas, including: 

·       Enhanced Affordability Report and Affordability Screening, enabling lenders to efficiently identify consumers that are most at risk – particularly during the cost of living crisis – using dynamic stress levels and eight new expenditure categories

·       Promoting credit education, with 16 million consumers having accessed their TransUnion credit report last year via its CreditView solution, integrated via leading UK lenders and aggregators’ apps. One of the features of this, Score Simulator, uses first-in-market technology whereby consumers proactively test the potential impact of future financial decisions on their credit score and eligibility

·       Helping businesses identify and reduce fraud with its TruValidate identity proofing, risk-based authentication and fraud analytics suite. Insights from the flagship fraud prevention solution showed the tool reduce fraud by 48%

Proven results demonstrating how these solutions have helped businesses protect consumers, as well as reducing losses, building loyalty and engaging customers, sealed TransUnion’s win as the industry’s leading provider of credit information.  

A winning partnership  

Providing an example of one the many uses of credit information, the win for Best Outsourcing and Partnership Initiative with Lloyds Banking Group was based on the use of TransUnion’s consumer platform to give customers free access to their TransUnion credit score.  

Speaking of the win, James Robinson, managing director of consumer interactive at TransUnion in the UK, said: “Empowering consumers to understand their credit information is crucial in helping them obtain finance that’s right for their needs. Our research shows the majority of those monitoring their credit score see it improve within six monthsⁱ and feel more in control of their finances,ⁱⁱ  so we’re very proud of this collaboration with Lloyds Banking Group and thrilled to see it named as an industry best.”  

Sam Clark, director of customer affordability at Lloyds Banking Group said: “Having easy access to up-to-date financial information is so important, as understanding your financial health can bring real peace of mind. We’ve seen seven million customers make use of the range of services Your Credit Score provides, including personal guidance on what impacts their credit score and how to help improve it, so it’s great to have the tool, and our partnership with TransUnion, recognised with this award.”   

TransUnion’s Consumer Platform is designed for finance providers looking to create their own suite of credit reporting products, driving consumer engagement and building brand loyalty. 

Notes:

ⁱ Based on TransUnion analysis, released in January 2022

ⁱⁱ75% of those checking their credit report and score more frequently, feel more in control of their finances as found by an independent, nationally representative of 2,000 UK adults carried out in October 2022 on behalf of TransUnion

This joint initiative helps credit unions and community development finance institutions to offer their products to a wider audience via comparison websites, increasing competitiveness in the credit space and promoting financial inclusion.  

It also aligns with consumer preferences, as the majority (58%) of UK consumers who check their eligibility for finance before applying for credit products rely on price comparison platforms as their main go-to source for credit options.ⁱⁱ  

James Robinson, managing director of consumer interactive at TransUnion in the UK, said: “In line with TransUnion's mission of using information for good, our work with Monevo and incuto marks an important step forward for the industry, driving broader access to credit for UK consumers. We’re happy to support credit unions and community development finance institutions in harnessing data and insights to enhance consumers’ financial wellbeing and foster a more inclusive financial landscape." 

Importantly for incuto and its customers, the power of the Monevo technology allows product updates to be implemented within seconds, meaning the offers shown to consumers are real rates which they are eligible for.  

Dawn Wood, Monevo UK territory director, said: "Monevo, incuto and TransUnion share the same mission of good customer outcomes. This partnership ensures credit unions and community bank offerings are available to consumers on credit comparison websites. The Monevo technology bridges the gap between these institutions and consumers seeking affordable credit solutions, ultimately driving financial inclusion." 

This exciting new collaboration brings together the unique capabilities of each partner: TransUnion provides comprehensive credit data, incuto enables community lenders to reach more potential customers, while Monevo helps them to host, manage and distribute their credit offers.  

Andrew Rabbitt, CEO of incuto, added: "We’re committed to providing community lenders with all the necessary tools and technology to thrive in a competitive financial landscape, connecting more people with affordable finance products. We think it's crucial that credit unions are presented on credit comparison websites sites, allowing consumers to have better choices when looking for a suitable credit product." 

Find out more here about TransUnion’s trended credit data and credit education solutions.  

Notes:

ⁱ Monevo is a personal credit platform and API co-owned by Quint Group and TransUnion

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

“The latest card spending figures from UK Finance show the continuing impact of the ongoing cost of living crisis, with credit card spend for November 2022 up 5.3% compared with the previous year (at £19.6 billion), whilst outstanding balances on credit card accounts were up by 9.4% for the same period.

“Access to credit is increasingly important to consumers as they combat rising living costs, and nearly half (49%) are planning on taking out a new credit card in the coming year, according to TransUnion’s Consumer Pulse study.

“With these figures coming against the backdrop of the challenging economic climate, finance providers must ensure they’re using robust affordability assessments and advanced credit data to make informed lending decisions.”

The new feature, which is powered by TransUnion’s Consumer Platform, enables clients of brokers using the Mortgage Magic platform to obtain their credit reports via the Mortgage Magic App or web client portal.  

Kelli Fielding, managing director of consumer interactive at TransUnion in the UK, said: “We're delighted to be supporting Mortgage Magic as they drive innovation in the mortgage market by helping to make applications easier for consumers, as well as brokers, whilst also ensuring lenders have a robust view of an individual’s financial standing. That’s more important than ever in the current economic climate to help people access the finance that’s right for their needs.” 

Consumers can complete their own fact find with accurate information from their credit file, empowering brokers to recommend the right product from the outset. Mortgage Magic will also enable smart features like dynamic alerts, that immediately notify customers of any changes or searches on their credit file, and a credit score simulator that helps educate customers on how they can improve their credit score.  

Tanjir Sugar, director at Mortgage Magic, said: “Mortgage Magic exists to provide brokers with a single, comprehensive solution for running their business. We are continually evolving the platform to add new features and functionality and this credit report enhancement is a big step in making it even easier for brokers to access accurate information, identify the best solution and spend more time doing what really matters – advising their clients. 

“As brokers will have accurate credit data from the outset, they can recommend the right product for the client without mistake, enabling them to apply to the right lenders and eliminating chances of decline. Mortgage Magic is the first and only native client app that enables customers to complete their fact find and track cases in real time and the launch of this functionality is further proof of the ability and superiority of the platform.” 

Mortgage Magic provides brokers with a comprehensive solution for running their business, covering all areas of the mortgage advice process, from sourcing, conveyancing, general insurance to protection and much more.  

The cloud-based platform features a built-in CRM system, e-ID verification, direct messaging, and secure UK-based document storage that complies with GDPR. It also allows company owners to manage and monitor business activities, provides qualified business leads and has portals for company administrators, advisers, introducers and clients. 

Find out more about TransUnion’s Consumer Platform that is designed for companies looking to create their own suite of credit reporting products here.  

For more information about Mortgage Magic, visit: www.mortgage-magic.co.uk  

Of those who plan to cut back, half (50%) will spend less on presents for family. This is followed by reducing spend on gifts for friends (37%) and scaling back on festive food (31%). 

The average spend is expected to be £769, although men are set to splash out more than women, with an additional £122. The survey showed that consumers will use a range of options to finance their festivities, including savings (40%), credit cards (28%) and buy now, pay later (12%). 

“Overall, a scaled back Christmas seems to be on the cards this year, with consumers adapting their spending habits in light of the current economic situation,” said Kelli Fielding, managing director of consumer interactive for TransUnion in the UK. “It’s positive to see the sensible steps being taken, and the average spend suggests that cutting back won’t dampen the festivities, with people simply prioritising the parts of the holiday season that are most important to them.” 

More than a fifth (22%) of consumers will spend less on socialising and the same number have set spending limits on gifts for friends and family. Meanwhile, one in seven (14%) will reduce the number of presents they give. 

Around a tenth (12%) of consumers are taking steps to be savvier when it comes to the cost of Christmas dinner. These include cooking the turkey in more energy efficient ways (12%), asking family to bring a dish (12%), and not making the traditional Christmas roast due to the cost of ingredients (11%). 

Kelli Fielding continues: “Whilst a third of consumers are cutting back this Christmas, others are intending to spend the same or more than last year. Whatever your budget, it’s important to stick to it, by planning ahead, deciding what’s most important and shopping around for the best deals. For those looking to spread the cost with different finance options, it’s important to keep an eye on your credit report and score, to help you monitor and manage your financial standing. And plan ahead with January in mind, so that you’re confident you don’t spend more than you should. Taking a few simple steps to budget properly now can save you from a financial hangover in the New Year.” 

To check your TransUnion credit score and report for free visit Credit Karma, MoneySuperMarket or TotallyMoney 

Notes:

Unless otherwise stated, all TransUnion research referenced relates to an independent, nationally representative survey of 2,000 UK adults carried out in October 2022. 

The research from TransUnion, one of the UK’s leading credit reference agencies, showed that the majority (75%) of those checking their credit report and score more frequently feel more in control of their finances as a result.

The top three reasons for people keeping a closer eye on their credit score during the cost of living crisis are increased awareness of their finances, needing to apply for further credit or planning to take out a bank loan.

“Some consumers are struggling to access the finance they need, with the turbulent political situation in the UK having led to rising interest rates and fewer products on offer. Taking control of your credit report and score is so important as it can help boost financial resilience and support access to credit when you need it,” said Kelli Fielding, managing director of consumer interactive at TransUnion in the UK. “With an increasing appetite for credit as a result of the rising cost of living, it’s essential that people are familiar with the information contained in their credit report, so they can check it’s accurate and can take steps to strengthen their credit profile as needed.”

The findings come alongside TotallyMoney research which shows that a third of adults may find it harder to access credit products from mainstream lenders at better rates due to limited credit history.

Alastair Douglas, CEO from TotallyMoney said: “Our study suggested that 16 million UK consumers currently wouldn’t have money available for an unexpected payment of £300, so it’s not surprising that many are planning to apply for credit to help navigate the current financial uncertainty. At TotallyMoney, we will continue to provide customers with free access to their credit information to ensure that their financial future remains firmly in their hands. In particular, this can help support the financially fragile with the tools they need to navigate this economic environment.”

TransUnion and TotallyMoney are urging UK consumers to regularly check their credit report and score to help support financial resilience and access to credit when needed, with some top tips below:

1. Make sure you’re on the electoral register – TransUnion’s survey showed that a tenth (10%) of consumers have signed up to the electoral register to help boost their credit score since the cost of living crisis worsened in April, which shows there’s an understanding of the importance of this. If you’re not already registered, this is an important step in helping to strengthen your credit score.

2. Don’t make multiple applications over a short timeframe – With 47% of consumers saying they are checking their credit score in advance of applying for credit due to the cost of living crisis, there could be a risk of some making multiple applications. This can be a red flag to lenders, as seeing many applications over a short period can suggest financial difficulties and could impact your ability to get credit.

3. Ensure repayments are made on time – TransUnion research suggests that more than one in 10 (11%) people saw their credit score drop due to a missed payment during the pandemic. Paying on time is essential to avoid negatively impacting your credit score.

4. Regularly check your credit report – As well as feeling more in control of your finances, this can help you understand and protect your financial standing and know what kind of finance you’re eligible for. It can also help you monitor for fraudulent activity as if someone tries to use your identity, this is one of the places you’re likely to spot it. This is really important at the current time, with 73% of people having been targeted by scams between May and August of this year.^[ii]

5. Avoid keeping a high balance on your credit card – Lenders look at how much credit you’re using so try not to hold a high balance on credit cards. If your balance is high, ensure regular monthly payments are made and try to pay more than the minimum when you can.

You can check your TransUnion credit report and score for free with TotallyMoney and other credit score providers.

Notes:

Unless otherwise stated, all TransUnion research referenced relates to an independent, nationally representative survey of 2,000 UK adults carried out in October 2022.

The study from TotallyMoney references a recent white paper with PwC: Overlooked and financially under-served (totallymoney.com) 

^[i] Three in 10 (28%) of UK consumers are checking their credit score more often since the cost of living crisis worsened in April. According to latest ONS figures, the current UK adult population is 59,597,300, which means 16,687,244 have checked their credit score more often

^[ii] TransUnion research in July 2022 surveyed 2000 UK consumers and found that 73% had been targeted by a scam between May and August 2022

The latest research from information and insights company TransUnion – one of the UK’s leading credit reference agencies – shows two thirds (66%) of teachers think financial education has stalled as a result of the pandemic.

Nearly three quarters of teachers surveyed (73%) say their pupils struggle to understand the importance of personal budgeting, saving, money management and calculating interest. The majority (74%) believe a lack of real-life experience for students, such as having a part-time job outside school and handling money regularly, has had the biggest impact.

Over half (53%) think the lack of understanding is because core subjects had to take precedence over financial education, with students now lacking knowledge on how to budget and manage money.

Kelli Fielding, managing director of consumer interactive at TransUnion in the UK said: “Following the serious disruption to learning caused by the pandemic, teachers are now dealing with the challenge of rebuilding financial education in schools and tackling persistent gaps in money knowledge which can put today’s young people at a real disadvantage. With the ongoing cost of living crisis, it’s essential to give students the skills to manage money before they leave school.”

Almost half (46%) of teachers say their students would lack understanding on building a credit profile, whilst more than four in 10 (41%) say their pupils wouldn’t know the difference between a credit and debit card.

To support schools in improving financial knowledge for young people – aligned to personal, social, health and economic (PHSE) education frameworks – TransUnion is launching a new free online teaching resource.

Credit Scores Explained aims to give secondary school students the best start to their financial life, helping them learn about managing money and understanding from an early age the role that their credit report and score will play. 

Kelli Fielding adds: “We want to advance the financial inclusion of the UK’s young adults by ensuring school leavers have the knowledge to make informed choices when the time comes to manage their own money. Understanding credit information and the role it plays in day-to-day life is an important part of that.”

You can check your TransUnion credit report and score for free with Credit Karma, Credit Monitor from MoneySuperMarket, or TotallyMoney.

Notes:

Unless otherwise stated research is based on a nationally representative survey carried out amongst 250 UK secondary school teachers by an independent research agency on behalf of TransUnion in July 2022.

The awards are run by Smart Money People, which aims to increase trust and transparency in financial services, giving consumers and clients the chance to have their say.  

For the second year running, TransUnion took home the title of Credit Information Partner of the Year, based on overall client feedback – with thousands of votes cast throughout the campaign. 

“It’s an honour to have been named as Credit Information Partner of the Year for the second year in a row,” said Satrajit “Satty” Saha, CEO of TransUnion in the UK. “A huge thank you to all the clients that voted for us – it really means a great deal.” 

TransUnion works with clients across a range of business sectors including finance, retail, telecommunications, utilities, gaming, government and insurance – helping to make trust possible between businesses and consumers – as well as working with a number of partners to give consumers free access to their TransUnion credit report and score.  

Kelli Fielding, TransUnion’s managing director of consumer interactive said: “Consumer credit information is central to what we do, so it’s a real privilege to be confirmed as the partner of choice. This information helps people achieve their financial goals, by enabling access to credit, as well as helping protect consumers through services such as affordability checks and identity verification. In this way, we make trust possible between businesses and consumers and this award is a reflection of our commitment to our clients and our partners.” 

For more about TransUnion's services, visit www.transunion.co.uk 

Despite the majority of consumers (71%) acknowledging the importance of credit in helping them achieve their financial goals, just 49% say that they have sufficient access. In fact, almost a fifth (18%) state they don’t have enough access to the finance they need.ⁱ 

Of those consumers seeking new credit in the year ahead, an increasing proportion – 48% – are looking to take out credit cards, up from 38% in Q2 2022.  

Kelli Fielding, managing director of consumer interactive at TransUnion in the UK, said: “It’s important that consumers understand how their credit report and score can help them with access to finance, so they can take the right steps to protect their financial standing in times of economic uncertainty. The data shows an increasing demand for credit cards but it’s essential that these are well managed to protect your credit score, with payments made on time, or early, avoiding high balances where possible.” 

The data illustrates that education is having a positive impact on consumer credit habits and awareness. Three quarters of UK consumers (77%) agreed that monitoring their credit is important, and nearly six in 10 (58%) said they do so at least quarterly. 

Whilst the majority of UK consumers (74%) expect to be able to pay all their upcoming bills and loans in full, the current economic picture is having a significant impact on spending. 

Close to 60% of consumers surveyed indicated they’d already decreased discretionary spend in the last three months – such as dining out, travel and entertainment – and a similar proportion (58%) intend to make further reductions in the next three months. Many plan to shift their spending toward bills and loans like utilities, insurance and credit cards (62%) instead.  

There is something of a generational divide, however, with nearly six in 10 Gen Z consumers (57%) saying they won’t be cutting back discretionary spend, and 30% intending to increase retail spending, such as fashion, over the next three months. 

Andy Piggott, director of core credit at TransUnion in the UK, added: “With rising utility bills and a divergence in spending behaviours across the generations, it’s essential that lenders have up-to-date information on an individual’s financial position. TransUnion’s affordability solutions allow lenders to understand their customers on a deeper level, leading to better informed decisions that benefit all parties.” 

The full update from TransUnion’s Q3 Consumer Pulse study is available here. 

Notes: 

ⁱ TransUnion’s Consumer Pulse Q3 2022 UK Study, based on a survey of 1,005 UK adults from 19 Aug.–29 Aug., 2022 

Whilst consumers are becoming more vigilant, increasingly sophisticated scams have led to more than one in four (26%) falling victim, with total financial losses of over £7.9 billion since the beginning of May.ⁱ

Common scams include fake tax rebates that are supposedly from the government (38%), bogus energy companies offering a discount (38%), offers which claim to be from insurance companies promising a cheap deal (37%) and phoney social media competitions offering free holidays (36%).

Fake investments are also common, with scammers using sham endorsements to lure people in. More than a third (35%) of consumers have been targeted by false cryptocurrency schemes promoted on social media, with what appear to be testimonials from celebrities.   

Kelli Fielding, TransUnion’s managing director of consumer interactive, explains: “We know fraudsters prey on our fears and worries, and the cost of living crisis is providing them with the perfect opportunity, giving rise to an abundance of scams. The average financial loss is £581, which is actually around half of what it was last year,ⁱⁱ but sadly the sheer volume of fraud and the increasingly convincing nature of the scams means more people have fallen victim, rising from 14% last yearⁱⁱⁱ to 26%. 

“Our research showed around half (51%) of consumers say the increased cost of living has made them more vigilant towards fraud, which is good news, but we’d encourage everyone to be extra cautious and treat any unexpected text message, email or phone call as a potential phishing attempt. If you’re being asked for your bank details or other personal information, consider this a red flag and, if in doubt, check with the company directly by calling their official phone number.”

Nearly one in three (32%) consumers agree banks and finance providers are doing more to warn people about new scams – either by sending out alerts when money is being transferred, flagging the latest scams or building in authentication systems to make them think twice before paying for something. Yet the same number (32%) say more education is needed to help stamp out digital fraud.   

Among all adults, close to half (46%) would contact their bank or finance provider if they’d been targeted or fallen victim to a scam and over a third (34%) would alert the legitimate company the fraudster was pretending to be from. Others said they would report scams to Action Fraud, the police or an industry regulator such as the FCA, Ofcom or Ofgem. Over a fifth (21%) would check their credit report to spot evidence of the scam.

Kelli Fielding continued: “It’s great to see people are keeping an eye on their credit report for signs of fraud. Your credit information gives a full picture of your credit history so if someone else has fraudulently used your identity to apply for credit, it will be visible here. Regularly checking your credit report helps you monitor and manage your financial health – so it’s important to identify anything that doesn’t look right so you can get it corrected.”

TransUnion’s tips to help reduce cost of living fraud:

·        If it seems too good to be true, it probably is! For example, scammers pretending to be companies offering unlikely discounts or unusual offers, such as a free holiday or an investment with a guaranteed win

·        Be wary of telephone calls, messages or emails offering a rebate or refund – typically scammers are pretending these are from energy companies or HMRC.  Do not follow any links but if you think it may be genuine then call the organisation directly on their official number and ask for information

·        Avoid clicking links or downloading attachments from unexpected emails or messages from a brand or business, unless you’re sure you know the origin. These could release malware onto your device or steal your bank details. It’s okay to ignore emails or messages that are unsolicited

·        Check the webpage is genuine. When online, make sure the webpage you are visiting is HTTPS protected or shows a padlock – both of which can be spotted in the domain bar. This indicates that it’s secure

·        Regularly check your credit report. This will help you to understand and protect your financial standing. It can also help you monitor for fraudulent activity as if someone tries to use your identity, this is one of the places you’re likely to spot it. You can check your TransUnion credit report and score for free with Credit Karma, Credit Monitor from MoneySuperMarket, or TotallyMoney

·       Report fraud to Action Fraud if you think you’ve been a victim. Or if you’ve received an email which you’re not quite sure about, you can forward it to the Suspicious Email Reporting Service at: report@phishing.gov.uk 

Notes:

i 26% of UK consumers have fallen victim to a scam, at an average of £581. According to latest ONS figures, the current UK adult population is 52,673,433, which means 13,695,092 consumers have collectively accumulated a loss of £7,956,848,452

ii TransUnion research in May 2021 surveyed 2,000 UK consumers and found the average financial loss of those who had fallen victim to fraud was £1,149

iii TransUnion research in May 2021 surveyed 2,000 UK consumers and found that 14% had fallen victim to fraud since the pandemic began

Over 50%ⁱ of UK consumers surveyed indicated they’d reduced their expenditure in the last three months and intend to decrease it further as the year progresses.

Whilst all spend categories are impacted, consumers said they would significantly reduce their discretionary spending, such as dining out, travel and entertainment, as well as retail spend, covering things like clothing and electronics, in the next three months. This could have far-reaching implications for the retail sector and for consumers’ quality of life. Where spend cuts won’t suffice, some also plan to dip into savings to pay at least one of their current bills and loans in full.

“Our study has highlighted the concerted effort being made by UK consumers to cut back spending,” said Kelli Fielding, managing director of consumer interactive in the UK. “With continuing financial pressure amid the rising cost of living, it’s more important than ever that people remain diligent about their credit and put into practice healthy habits such as making payments on time, checking their credit information and keeping an eye on their credit score. This will help them stay in control of their financial wellbeing and help to ensure they can access finance if needed.”

Over the course of the last six months, consumers saw inflation soar, largely driven by the war in Ukraine and ongoing global shortages. Six in 10 (60%) UK consumers said inflation was the biggest concern affecting their household finances for the remainder of 2022, making it the biggest worry by far, followed by recession at 10%.

Despite the cost of living crisis, much of the population remains financially stable and more than able to weather the storm. More than half (53%) say their household finances are faring as planned or better, and the majority (73%) say they would be able to pay all their upcoming bills and credit commitments in full.  Looking at income, eight out of 10 (80%) UK consumers have seen income either stay the same or increase over the past 12 months, and 29% expect to see it go up in the next year.

Gen Z consumers appear particularly resilient to the current financial pressures. Two in three (63%) young respondents said that they plan to take no action to cut back discretionary spending, with over a quarter (27%) planning on increasing their retail spending in the next three months.

The full update from TransUnion’s Q2 Consumer Pulse study is available here.

Notes: 

i TransUnion’s Consumer Pulse Q2 2022 UK Study, is based on a survey of 1,004 UK adults from 20 May–1 June, 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

The Lloyds Bank ‘Your Credit Score’ service, which uses TransUnion’s Consumer Platform, is filling a clear demand – with almost one million of the bank’s customersⁱ checking their credit score for the first time in April.

“It’s really encouraging to see people engaging more with their credit information. More than one in three UK consumers now check their credit report and score at least once a month,ⁱⁱ according to our latest research, and the success of Lloyds Bank’s Your Credit Score service is testament to that,” said Kelli Fielding, managing director of consumer interactive at TransUnion in the UK.

The research, conducted for TransUnion’s Consumer Credit 2022 white paper, also showed that a quarter of UK adults believe that banks should be responsible for credit education, while nearly a third (31%) say their bank is their most trusted source of information when it comes to financial management.

Kelli Fielding continued: “We’re seeing a much better level of understanding in terms of how this information is used, thanks to tools like Your Credit Score, which enables customers of Lloyds Bank to access their TransUnion credit score for free. It also helps them take steps to build their credit score if need be, improving access to finance. That’s really important in the current climate with the rising cost of living.” 

According to TransUnion, people who keep a close eye on their credit score generally see an improvement over six months.ⁱⁱⁱ

The Your Credit Score tool, which updates every 28 days within online or mobile banking, provides a range of information related to a customer’s creditworthiness including:

·        The customer’s current credit score and a rating from ‘needs work’ to ‘excellent’

·        Personalised information on what is affecting the score

·        How their score may affect any borrowing applications

·        How the score has changed over time

·        Information on where to go for support and guidance with any money worries or financial difficulties, including free and independent advice

Elyn Corfield, managing director consumer finance at Lloyds Bank, said: “We saw a 432% monthly increase in customers using our credit score service in April this year. This exceeded our expectations and highlights the focus people are putting on their personal finances. More than ever, people across the country are taking a closer look at their financial situation and by partnering with TransUnion we’re providing easy-to-access information that can empower people to make the right decisions for them.”

Find out more about TransUnion’s Consumer Credit Platform that is designed for companies looking to create their own suite of credit reporting products here.

 Notes:

i Data from Lloyds Banking Group (Lloyds Bank, Halifax and Bank of Scotland), Your Credit Score registrations as of 25th May 2022: 2,506,592 unless otherwise stated

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

iii TransUnion’s analysis of self-monitoring consumers, 2021

Lowell aims to help make credit work better for all and is partnering with leading global information and insights company, TransUnion, to help people understand the importance of credit information, which is particularly important as UK consumers deal with the increased cost of living.

Recent research for TransUnion’s Consumer Credit 2022 white paper showed that six in 10 people in the UK are feeling the pressure of the rising cost of living, which makes it harder for them to improve their financial positionⁱ. The partnership between Lowell and TransUnion will support Lowell customers in overcoming difficulties and navigating the path to their financial recovery.

Kelli Fielding, managing director of consumer interactive at TransUnion in the UK, said: “We’re delighted to expand our longstanding relationship with Lowell, to give financially vulnerable customers access to their credit information via the new Lowell app. Keeping a keen eye on your credit score is a quick and easy way to monitor your financial situation and improve your financial health. With TransUnion data now available in Lowell’s app, customers are just a click away from the insights that can help them build their credit score and better manage their finances.”

TransUnion’s data has confirmed the benefits of regularly checking credit scores, showing that more than half (53%) of self-monitoring consumers increased their credit score in six months and became eligible for new productsⁱⁱ. TransUnion’s recent Consumer Credit report highlighted that over a quarter (26%) of people in the UK take advantage of action steps available to improve their financial standingⁱ.

Powered by TransUnion’s CreditView platform, Lowell's Credit Information Services are available via the new Lowell app on mobile and tablet devices for free, giving customers a clear understanding of what their credit score means, as well as how to take steps to improve it if necessary.

John Pears, CEO at Lowell said: “Perceptions of the importance of credit monitoring differ, both by generation and geographically across the UK, with many not knowing how or why to check their credit scores. By joining forces with TransUnion to provide our customers with access to their credit information, we are helping to address these gaps in awareness head-on. Our customers will be able to view their 72-month credit score history for free, as well as the aspects that impact their scores – both positively and negatively – in turn empowering them to make better financial decisions.”

Lowell's Credit Information Services include a credit summary with key metrics like current balances, debts and presence on the electoral register, as well as full credit reports, queries and educational materials.

This is the first in a series of credit education tools that Lowell is launching with TransUnion.

For more on TransUnion’s CreditView, a fully hosted, flexible and customer-labelled solution, visit: https://www.transunion.co.uk/product/credit-view

For further details about the Lowell app, visit: https://www.lowell.co.uk/mobile-app/

Notes:
ⁱ TransUnion Consumer Credit 2022, based on research conducted among 2,000 UK consumers, aged 18 and over, January 2022

ⁱⁱ TransUnion’s Analysis of Self-Monitoring Consumers, 2021

The latest research from the global information and insights company – one of the UK’s leading credit reference agencies – examines changing consumer habits and shows that more than six in 10 (64%) people aged 18 to 24 are using buy now, pay later services.

Alongside increased demand for buy now, pay later, the research shows a strong appetite for credit from this generation, with 42% saying they plan to apply for new credit or refinance existing credit in the coming year – well above the 27% average for UK consumers.

Kelli Fielding, TransUnion’s managing director of consumer interactive in the UK, explains: “It’s likely that young adults will turn to credit to help them take the steps in life that have been put on hold over the past couple of years – whether for major purchases, like buying a car, or moving out of the family home – as well as for everyday finance.  

“Alongside this, it’s clear to see the growing demand for buy now, pay later services, with Gen Z citing the main appeal being interest-free payments (70%), as well as spreading the cost over time (62%) and ease of use at checkout (54%) which is markedly more important for this age group than others.”

Buy now, pay later finance reached a transaction value of £6.4 billion in 2021, according to industry reportsⁱ and the growth looks likely to continue.

Kelli Fielding continued: “Starting this summer, buy now, pay later agreements will appear on TransUnion credit reports, helping people to better manage their finances. It’s important to note that this won’t have any immediate effect on your credit score. That said, how you handle your payments will be visible to lenders and could be taken into account if you apply for credit, so it’s really important to keep up with your payments.”

To check your TransUnion credit score and report for free, visit Credit Karma, MoneySuperMarket, or TotallyMoney.  

Buy now, pay later borrowing and your credit report: here’s what you need to know:

Why is buy now, pay later information being added to credit reports?

TransUnion is including buy now, pay later data in credit reports to support people in managing their finances and to ensure payment behaviour on buy now, pay later agreements is visible.

When will this information appear on my credit report?

TransUnion will be incorporating buy now, pay later data into traditional credit reports starting in summer 2022.

How will this affect my credit score?

There will be no immediate effect on TransUnion credit scores. However, as the data becomes more widely used, TransUnion will be updating its credit scoring as appropriate.

Why are things changing?

People need as much choice as possible when it comes to finding finance that’s right for their needs, and on terms they can afford. Including buy now, pay later data in credit reports will support consumers and help lenders make informed credit decisions.

Will buy now, pay later purchases made in the past be visible on credit reports?

Providers will let customers know their data is being shared with TransUnion before it appears on their credit report and can confirm the dates it will apply from.

If I miss a buy now, pay later payment, will it affect my credit score?

Credit scores won’t be impacted initially but missing payments would be visible to lenders and could affect your ability to borrow, so it’s really important to keep up repayments as agreed.

Will hard credit checks now be used when I am taking out buy now, pay later finance?

Buy now, pay later finance checks will be recorded on your TransUnion credit report, and will be visible to other lenders. However, these checks will be shown to lenders in a different way to traditional hard searches, typically used for things like mortgages, credit cards and loans, or soft searches, often used for quotations and eligibility checks before credit is provided. It will be up to individual finance providers to decide how they use these new checks in lending decisions.

 Notes:

Unless otherwise stated research is based on a nationally representative survey carried out amongst 2,000 UK consumers by an independent research agency on behalf of TransUnion in January 2022.

For the purposes of this press release, Gen Z relates to adults aged 18 to 24.

i Bain & Company, 2021

The research reveals significant growth in the credit market when compared with pre-pandemic figuresⁱ with more consumers now intending to take out mortgages (26% versus 22%), credit cards (22% up from 13%) and unsecured personal loans (16% versus 7%) when compared with two years ago.

Also highlighted in the report is the closing gap between traditional banks and digital-only finance providers, with 21% of UK consumers planning to open a current account with a high street bank in 2022, whilst almost the same number (20%) are looking to apply with an online-only bank or app.

The rise of BNPL is examined in depth, with TransUnion’s research affirming that these products have quickly become as popular as more conventional forms of finance. BNPL finance reached a transaction value of £6.4 billion in 2021, according to industry reportsⁱⁱ and the growth looks likely to continue.

“Buy now, pay later finance saw unprecedented growth during the pandemic, with our research showing nearly two in five (37%) UK adults now use these services at least some of the time when shopping,” explains Satrajit “Satty” Saha, CEO at TransUnion in the UK. “Consumers are seeking alternative ways to pay as they address the cost of living crisis, and TransUnion is proud to be at the forefront of changes to support consumer needs as this sector evolves, by incorporating the data into credit reports from this summer.”

The main motivations cited by consumers for using BNPL services are to spread the cost over time (68%) and the option for interest-free payments (62%). Ease of use is also a key factor for two in five (41%) shoppers.

Shail Deep, chief product officer for TransUnion in the UK, added: “As the spiralling cost of living in the UK exacerbates financial polarisation, it’s important that consumer spending is supported with a broad range of payment solutions. Whilst more than half of consumers (54%) indicate that they are confident their financial situation will remain stable, four in 10 are still postponing any major spending due to concern over their financial future. BNPL provides flexibility and convenience, as well as the potential for interest-free credit, so it’s going to remain popular and continue to grow in the current economic climate.”

TransUnion’s Shail Deep is a keynote speaker at the AltFi Festival of Finance 2022 and discussed how TransUnion is leading the way in evolving the financial ecosystem to include BNPL data in consumer credit reports.

This will mean both consumers and lenders will be able to see applications for BNPL finance and payment performance for these transactions, helping to support responsible lending.

To read the Consumer Credit 2022 white paper, visit TransUnion’s website here.

Notes:

TransUnion’s Consumer Credit 2022 is based on extensive, nationally representative research carried out amongst 2,000 UK consumers by an independent research agency on behalf of TransUnion in January 2022 

 ⁱ Data from TransUnion’s Consumer Credit 2020 report, based on a consumer survey of 2,000 UK adults in November 2019

ⁱⁱ Bain & Company, October 2021

The Consumer Credit 2022 white paper, an in-depth look at the current financial landscape and changing consumer habits, points to greater understanding of credit information and the importance of its role, as the cost of living crisis deepens.

Satrajit “Satty” Saha, CEO at TransUnion in the UK, commented: “Our research shows how keenly consumers are feeling the impact of the cost of living crisis. Six in 10 say rising costs will make it harder for them to improve their financial position in the coming year​, with food and energy bills being the areas of greatest concern. Finance providers must take note and ensure they are supporting consumers appropriately, and to do that they need actionable, data-led insights.”

TransUnion’s research affirms the continuing financial polarisation that has been driven by the pandemic, meaning some consumers will be better positioned than others to deal with pressures on household budgets.

Whilst nearly half (45%) expect to be in a better financial position than before the pandemic, a similar number (40%) are postponing any major spending due to concerns over their financial future.

Empowering consumers to be proactive in monitoring and managing their credit information will be key in helping them to access the finance they need and to protect their financial wellbeing. Previous data shows that 53% of customers report a credit score increase within the first six months of self-monitoringⁱⁱ.

Kelli Fielding, managing director of consumer interactive for TransUnion in the UK, explains: “It’s really encouraging to see consumers engaging more with their credit information, with more than one in three (35%) now checking their credit report and score at least once a month. With a quarter now using credit monitoring services to learn about how credit scoring works, we’re also seeing a much better level of understanding in terms of how this information is used.”

According to TransUnion’s research, almost half (47%) of consumers pay their bills on time with their credit score in mind – recognising the impact a late or missed payment could have – whilst over a quarter (26%) are currently taking action steps to improve their credit score.

Kelli Fielding continues: “The pandemic really brought home the role that credit information plays in our daily lives. As consumer finances are squeezed further, it’s going to be more important than ever for individuals to keep an eye on their credit report and score to help them access finance, should they need it.”

Consumers are placing greater trust in finance providers

TransUnion’s research confirms that trust remains the number one priority when selecting a finance provider – cited by four in 10 (43%) UK consumers.

“At TransUnion, our goal is to make trust possible between businesses and consumers by providing data and insights to support informed decisions,” said TransUnion’s UK CEO, Satty Saha. “As we navigate further financial uncertainty, maintaining and building trust will be essential for finance providers in helping to deliver the best outcomes for their customers.”

Trust in financial services has grown since the start of the pandemic, with the sector having rallied in the face of the COVID-19 crisis – supporting consumers with tailored accommodations whilst swiftly evolving their processes to embrace the shift towards online transactions.

As a result, trust in traditional banks is now even stronger than before the pandemic at 84%, up from 81% at the end of 2019, whilst one in three (31%) now consider their bank to be their main source of financial information.

Digital challengers, such as digital-only banks or apps, also saw an increase in levels of consumer trust, reaching 63%, up from 57% in 2019, as they continue to close the gap with their high street counterparts.

To read the Consumer Credit 2022 white paper, visit TransUnion’s website here.

Notes:

TransUnion’s Consumer Credit 2022 is based on extensive, nationally representative research carried out amongst 2,000 UK consumers by an independent research agency on behalf of TransUnion in January 2022  

ⁱ 35% of UK adults say they now check their credit score at least once a month, according to TransUnion research in January 2022, up from 27% based on comparable TransUnion research in November 2019 (representing a 30% increase)

ⁱⁱ TransUnion’s analysis of self-monitoring consumers, 2021

Rental payment history of those individuals using CreditLadder can now be recorded in their TransUnion credit report, giving finance providers a more holistic view of financial standing and creditworthiness.

Anyone renting can sign up to the service by providing details of their bank account, rent amount and tenancy details, enabling CreditLadder to capture and track rental payments automatically, via Open Banking.

Kelli Fielding, managing director of consumer interactive for TransUnion in the UK said: “We want to empower consumers to take control of their credit information to help them access the finance they need. By helping to ensure that those that are not on the property ladder can benefit from the reporting of their rental payment behaviour, renters can strengthen their credit score and, in turn, access to finance, so we’re delighted to be partnering with CreditLadder to support UK consumers in this way.”

Mortgage payments are already visible within credit information so by including rental data, TransUnion aims to help lenders make more informed assessments about affordability and help ensure consumers are offered the finance that is appropriate to their situation.

Sheraz Dar, CEO at CreditLadder, said: “At CreditLadder, our sole mission is to help UK tenants access fairer finance. Working with TransUnion we are achieving this by helping to innovate the credit reporting process. Having a strong credit report and score can help tenants improve their access to credit and accomplish their financial goals, whether for everyday living or for bigger ticket items like buying their own home or going on holiday.”

Gareth Howell, head of data solutions at TransUnion in the UK added: “Harnessing property rental data will help credit providers to make informed assessments, whilst empowering consumers to utilise their rent payments to help build stronger credit profiles. These insights will also help improve financial inclusion by recognising positive rental payment behaviours.”

Consumers can check their TransUnion credit score and report for free by visiting Credit Karma, MoneySuperMarket, or TotallyMoney to see their rental payment information. UK tenants can sign up to CreditLadder via the website.  

Find out more about TransUnion’s affordability solutions and credit education tools. 

Following extensive research and product innovation, buy now, pay later finance – also known as deferred payment credit – will soon be included within TransUnion credit information to help protect consumers and enable finance providers to ensure that payment plans are affordable and sustainable. 

“We’re delighted to announce these important changes to the way buy now, pay later products are treated within the credit ecosystem,” said Satrajit “Satty” Saha, CEO of TransUnion in the UK. “We’ve been working closely with prominent providers of buy now, pay later finance to lead the way in line with industry changes and consumer needs. Incorporating this data into credit reports will support consumers that are using this type of point-of-sale finance, whilst also ensuring lenders have a comprehensive picture of a borrower’s financial position.”

Buy now, pay later finance saw unprecedented growth during the pandemic, with consumers seeking out more ways of accessing interest-free credit as they shop online. TransUnion researchⁱ shows that more than a third of consumers (35%) used this type of payment in 2021.

The addition of buy now, pay later data to UK credit files follows extensive industry debate and acknowledges a key recommendation of the Woolard Reviewⁱⁱ. Consumer protection has been central to the changes and new search footprints are being introduced to enable consumers and lenders to see applications for this kind of finance.

Shail Deep, chief product officer at TransUnion in the UK, added: “By conducting extensive industry analysis and working with leading global buy now, pay later providers to simulate the impact of buy now, pay later data within our credit bureau, TransUnion has been able to identify the most appropriate way to incorporate the data into our products, in what is an evolutionary milestone for the industry, putting the consumer at the heart of these new developments.

“These changes will be really beneficial for those with thin credit files, supporting financial inclusion and wider access to credit, as well as helping to ensure finance providers have a holistic view of an individual’s borrowing, so they can use these insights to help ensure the right outcomes for consumers.”

With a phased implementation, TransUnion will utilise buy now, pay later data within a range of its products, which are widely used by leading banks and credit providers across the UK. This data will start to appear on consumer credit reports from summer 2022. 

To find out more about credit information and how it’s used by finance providers, consumers can download TransUnion’s ebook: Getting to Grips with Your Credit Report and Score.

Notes:

i TransUnion’s Consumer Pulse, based on research conducted among 1,100 adults between 1 – 5 November 2021

ii The Woolard Review was a report to the FCA which examined change and innovation in the unsecured credit market, published 2 February 2021

The data revealed that the nation is planning to splash out an average of £575 per person this year, up £148 on last year’s Christmas. The biggest spenders are those aged 35 to 44 whose average spend will increase to £683 this Christmas, whereas people aged over 65 will allocate £501 on average.   

Across the country, those in Northern Ireland are planning to spend the most, at an average of £772 planned, topping even London at £765, whereas people in the South East have set a more conservative budget of £449 per person.  

Kelli Fielding, TransUnion’s managing director of consumer interactive in the UK comments: “It’s no wonder that so many people have planned a bit of a splurge this year to celebrate the festive season with loved ones, and it’s positive to see the uplift in spend from last year. However, with the constantly changing situation it’s not surprising that just under a fifth (17%) are approaching the season with caution and will have a smaller celebration as concerns about COVID-19 remain and fresh restrictions loom.” 

Christmas shopping will be paid by debit card for the majority (42%) with close to a third (29%) of adults using savings accumulated over previous lockdowns. However, credit cards (31%), overdrafts (11%) and buy now pay later finance (11%) will all be helping to spread costs.   

Plus, despite talk of supply chain issues in the UK, more than a quarter (27%) are happy to replace festive food items for alternatives if needed, swapping turkey for beef, sprouts for cabbage or pigs in blankets for chipolatas.   

Kelli Fielding continues: “Whatever the size and scale of your festivities, keep a track on your budget and if you need to utilise credit to defer payments, make sure you’re thinking ahead and have an affordable repayment plan when January comes.”  

Five financial New Year resolutions for 2022   

• Check your credit report more often: Checking your credit report and score regularly is an essential part of monitoring and managing your finances. It also means you can ensure the information held on your report is accurate, or get any errors corrected.  

• Use free eligibility checkers to see if you will be accepted for credit before applying: If you apply for a credit card or loan it leaves a footprint on your credit file, potentially affecting your ability to get future credit.  It’s better to use a free eligibility checker which uses a ‘soft search’ to calculate your likelihood of being accepted. A soft search won’t impact your credit score.  

• Disassociate yourself from previous financial partners by closing joint accounts and mortgages: If you’ve shared finances with somebody in the past, they might show up on your credit record. If you don’t want this to happen, you can apply for a notice of disassociation.  This will be important if your ex-partner has lots of debt, or they’re late paying bills.  

• Pay your bills on time each month: Payment history is an important factor in your credit report, so paying your balance on time or early each month will help maintain your credit score, whilst also avoiding interest charges or fees. Make sure you cover the minimum payment but ideally pay more if you can.  

• Get your name on the electoral register: Making sure you are on the electoral register is essential for building a strong credit score. as it helps lenders to confirm that you are who you say you are.  

To check your TransUnion credit score and report for free visit Credit Karma, MoneySuperMarket, or TotallyMoney 

According to new research from information and insights company TransUnion, a fifth of those moves (19%) were to get onto the property ladder and over a quarter (26%) were to climb it further.

This was fuelled, in part, by the stamp duty holiday, which made buyers exempt from the tax from July 2020 to September 2021ⁱ. In fact, over a quarter of buyers made the decision to move in order to benefit from the exemption.

The top motivations for moving were better location (34%), upsizing (28%), outside space after having spent lockdowns indoors (27%) and stamp duty savings (27%).

Kelli Fielding, TransUnion’s managing director of consumer interactive in the UK comments: “After nearly two years of the pandemic and reductions in stamp duty, which can often cost as much as a house deposit, it’s no wonder we have seen such an appetite to get onto the property ladder or make a move over the past 18 months. And it seems this buoyant market is set to continue, with almost a quarter (22%) of adults aiming to apply for a mortgage in the first half of 2022 and over a third (35%) planning a move within the next two years.

“For those thinking about moving, it’s absolutely critical that they’re familiar with their credit report and score, so they know what mortgage deals they are likely to be eligible for. It’s also a good opportunity to check all the information held on your credit report is accurate, which is something that people should be doing well in advance of any mortgage application. There are simple steps you can take to help improve your credit score over time, if needs be, so you should be thinking about this at least six months ahead of applying for a mortgage to ensure you’re in the best financial position when the time comes.”

TransUnion’s research confirmed nearly a third (30%) of consumers planning a move have familiarised themselves with their credit report and score to help them get their mortgage, and over a quarter (27%) want to try and improve their credit score before applying for their mortgage to get the best rates.

A quarter (25%) of those moving within the next two years were able to save enough money during lockdown to afford a deposit for a property. That’s no mean feat given buyers typically need a minimum of 5% saved, and with average house prices in England reaching £271,000ⁱⁱ, prospective buyers need at least £13,550 in their piggy bank.

To check your TransUnion credit score and report for free visit Credit Karma, MoneySuperMarket or TotallyMoney. For tips on building a stronger credit score download TransUnion’s free ebook ‘Getting to Grips with your Credit Report and Score’ here.

Notes:

Unless otherwise stated, figures relate to survey of 2,000 nationally representative adults (18+) carried out by OnePoll on behalf of TransUnion in November 2021.

Using TransUnion’s solution, NatWest’s ‘Know My Credit Score’ feature provides customers with unlimited free access to their TransUnion credit score and score factors, via an interactive dashboard. This helps customers better understand their finances and empowers them to take control of their credit score so they can make better financial decisions.

“We’re really honoured to receive this award in conjunction with NatWest. It’s a fantastic example of our promise to enable trust between businesses and consumers using information for good,” said Kelli Fielding, managing director of consumer interactive at TransUnion in the UK. “Credit information is at the heart of what we do – we have an accurate and comprehensive picture of each person, and we steward it with care – so it’s really exciting to see the impact NatWest’s credit score feature has had in helping consumers better understand their credit score and the factors affecting it, with over 3 million NatWest customers now using the service.”

Phil Sheehy, short-term borrowing customer goal lead at NatWest added: “It’s fantastic to achieve this recognition for our credit score feature which helps enable our customers to become more financially capable. We were the first UK bank to offer this feature which holds the record for the fastest digital adoption in the mobile app since our records began.

“Easy access to credit information is essential for consumers to be more engaged in the financial ecosystem, leading to greater consumer confidence, a feeling of being in control and being more prepared for financial shocks or surprises, which is really important in the current climate.”

TransUnion analysis shows that NatWest users have been able to improve their credit score within the first few months of monitoring, and that it’s being used proportionally more with customers in the lowest score bands – an indication it’s helping those that need it the most. 

Find out more about TransUnion’s consumer engagement solutions here.

Eligibility, also known as pre-qualification, is an important part of consumer lending. Pre-approved offers, or an indication of the likelihood of being approved at the rates shown, enable consumers to shop for personalised credit products with ease, while ensuring multiple eligibility assessments do not adversely impact an individual’s credit score.

Operating primarily in the UK and US, as well as Poland and Australia, Monevo provides centralised infrastructure, with the technology, decisioning and integration to allow lenders and aggregators to work efficiently together to deliver the best possible consumer outcomes.

“We’re pleased to make this investment and enter into a global strategic partnership with Monevo, expanding our offering to finance providers and aggregators to help them better serve their customers,” said Satrajit “Satty” Saha, CEO of TransUnion in the UK. "Harnessing the synergies between the two businesses, we can leverage TransUnion’s data, analytic capabilities and decisioning expertise alongside Monevo’s market-leading technology platform, extensive partner distribution network and expert team.”

Using granular data and predictive modelling, Monevo’s solutions enable credit providers to review and accept more applications. This helps consumers find the most suitable products, supporting financial inclusion and responsible lending. Monevo is well-established in this space in both the UK and the US, and through this commercial agreement with TransUnion can expand and improve its solutions.

TransUnion’s Steve Chaouki, president of US markets and consumer interactive, added: “Monevo has driven fintech innovation in the consumer credit sector and our partnership will open up a broad range of new opportunities serving both consumers and businesses. For example, we will be able to incorporate targeted offers into our CreditView product and offer our consumer platform to Monevo’s existing customer base.”

Greg Cox, CEO of Monevo said: “Our mission has always been to improve access to credit by providing the technology and infrastructure to power credit distribution globally. By partnering with TransUnion, which owns and operates key services and infrastructure in the credit ecosystem and serves a large global base of relevant clients, the potential of this investment for Monevo is huge. Both parties share a similar ethos for innovation and empowering consumers to make better credit decisions and we’re extremely excited to work with the team at TransUnion to realise Monevo’s growth potential over the years ahead.”

Monevo is a subsidiary of Quint Group, which comprises a number of different businesses that serve consumer finance markets. As part of the investment, TransUnion will join Monevo’s board and provide dedicated resource to support long-term growth objectives.

“The latest figures from the Bank of England point to volatility in the consumer recovery from the pandemic, with growth below historical levels, and this is reflected in the decreased consumer optimism noted in our latest Consumer Pulse report.

“Despite increased summer spending in August, which saw the annual growth rate for consumer credit increase slightly compared to July, the Money and Credit statistics show that consumers borrowed just £0.4 billion of credit last month, which remains well below the average £1.2 billion monthly figure seen in the two years to February 2020.

“The data also reveals that individuals borrowed £5.3 billion of net mortgage debt in August, following a net repayment of £1.8 billion in July. However, net borrowing in August was £1.4 billion below the 12 month average to June 2021, when the full stamp duty holiday was in effect. Figures for mortgage approvals, which indicate future borrowing, dropped from 75,100 in July to 74,500 in August, which is the lowest level since July 2020, although this decrease doesn’t come as a surprise, given stamp duty freezes will be tapered off this autumn.

“Our own Consumer Pulseⁱ research has shown that consumer optimism dropped in Q3, down to 54% of UK consumers saying they were somewhat, very, or extremely optimistic about the future, compared to a peak of 61% in Q2 2021. This appears to be reflected in the fact that there are real fears over the long-term recovery following the pandemic, with 24% of consumers expecting their household income to decrease in the future.

“However, this consumer research was undertaken before the first signs of the potential cost of living crisis were beginning to be felt in the UK, with looming increases in energy, fuel and food bills likely to complicate the picture further – highlighting just how bumpy the road to a full recovery could be. Whether this will translate to an uptick in consumer borrowing remains to be seen.

“Although the latest Bank of England insights suggest there has been a slowdown of sorts in the recovery to date, it’s important to remember that the economy is still in a far better position that it was this time last year. We will, however, inevitably continue to experience some volatility as consumers negotiate future challenges without the help of emergency job support schemes. As such, it’s critical that finance providers are attuned to potential fluctuations in their customers’ financial circumstances and use data and insights to help them make informed lending decisions, as well as supporting those that may be facing financial difficulties.”

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