Only 27% of people feel in control of their finances, says N26

By Aisling Finn on Thursday 28 May 2020

Digital Banking

The ‘Big Banking Chat’ survey captured data from over 10,000 adults across Europe and the US.

Only 27% of people feel in control of their finances, says N26
Image source: Nicholas Kopp/N26

German challenger bank N26 has published new data this morning that shows only 27 per cent of people globally feel in control of their finances.

One of the main findings from the survey is that a huge 75 per cent of Americans negatively describe their feelings towards their finances, with 46 per cent saying they’re “worried” and 39 per cent are “nervous” about their finances.

Despite this, Americans are saving more on average than their European counterparts.

The average US N26 user saves almost $220 per month compared to €177 ($192) in Europe, although 34 per cent of users admitted they hadn’t saved any money under lockdown.

Nicolas Kopp, US CEO of N26, said: “We found that there is a lot of confusion, frustration and anxiety around personal finances and that people are looking for more simplicity, transparency and trust when it comes to banking.”

N26 also revealed that spending of disposable income has decreased, particularly for eating out which has, unsurprisingly, dropped from 48 per cent down to just 12 per cent.

Similarly, money spent on outdoor entertainment has dropped from 35 per cent to just 7 per cent.

Following the revelation that coronavirus can cling to banknotes for a number of days, N26 says that two-thirds of its transactions are contactless globally, with 75 per cent of users in Ireland and Spain adopting the touch-free payment option.

N26 also hasn’t been immune to the effects of the coronavirus pandemic.

In April it was revealed that its founders, Valentin Stalf and Maximilian Tayenthal, and the eight other members of N26’s leadership team would take a 25 per cent pay cut for the next 12 months.

The German challenger also laid off 10 per cent of its workforce in its New York office to help "future-proof the business in these uncertain times."

Despite the pay cuts and job losses, N26 also extended its Series D for a second time and raised an additional $100m, taking its total raised to date to $750m.

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