The pandemic super-charged digital habits in the UK, particularly among higher-income groups. These people are also in a better place financially as pandemic restrictions lift, but there’s pent-up desire to spend across all income brackets.
The Australian Prudential Regulation Authority (APRA) now requires entrants to offer income-producing products, like loans, and to have an exit plan. This will scare off some neobanks—but those that have launched, or are about to, may benefit.
The pandemic has hit lower-income households especially hard. But its effects are being felt across income brackets, and not always in predictable ways—for instance, upper-income consumers are making the biggest spending cuts.
And among millennial consumers worldwide with more than $250,000 in annual income, 78% say they plan to use more digital and virtual tools in the future, per EY. Yet, wealth managers’ digital offerings remain somewhat limited. For example, only 35% of US wealth apps offer chat functionality for messaging, despite being a frequently requested feature by clients, per a 2020 J.D. Power study.