Annual Savings of £400 for Brits by Cancelling Subscriptions, Yet £61 Still Lost to the 'Recurring Payment Trap', According to HSBC UK
HSBC UK Launches Campaign to Combat 'Invisible Spending'
HSBC UK has launched an initiative aimed at helping individuals better manage their automatic payments, known as the 'Invisible Spending' campaign. The campaign provides clear visibility of all subscriptions and upcoming payments in one place via their mobile banking app [3].
The campaign addresses a common issue faced by many UK consumers: they cut back on subscription services but still lose money due to "invisible spending" on automatic payments they forget to cancel [1][3]. This issue is particularly prevalent among millennials, who are cancelling more subscriptions than any other group, saving £37 per month, but still wasting £69 annually on services they no longer use due to not cancelling them [2].
The redesigned HSBC UK mobile banking app offers customers tools for spending and budgeting insights, including the ability to see upcoming payments and subscriptions. This allows users to easily track and cancel subscription services they no longer use, helping them avoid wasting money on forgotten automatic payments [3].
The demand for better financial management tools is highlighted by the research. Over 95% of people would find it helpful if their banking app showed all their subscriptions in one place [4]. The app also provides a central hub for all recurring payments, helping users balance recurring costs against impulse spending.
Impulse spending is more common among Gen Z and Millennials, with 71% admitting to it. Boredom and day-to-day stress are the top triggers for impulse spending [5]. The research found that Brits are saving an average of £34 per month and £408 per year by cancelling subscriptions [6].
Sabine Fichaux, Head of Transactional Banking at HSBC UK, stated that people want clarity and control over their subscriptions. She mentioned that HSBC UK is committed to delivering clarity and control to its customers [7]. The app allows customers to easily cancel subscriptions if desired.
Almost half of the surveyed individuals delay cancelling due to the ease of direct debits [2]. A further 29% say 'fear of missing out' prevents them from cancelling [8]. Millennials are the generation most likely to feel caught out by automated payments, with 54% saying direct debits delay their decision to cancel [2].
The HSBC UK mobile banking app aims to help customers budget for the things that matter to them. By providing transparency, control, and financial insight, the app helps users make informed decisions and improve budgeting [3]. In summary, the campaign offers:
- Transparency: Display all subscriptions and automatic payments centrally.
- Control: Enables easy cancellation of unwanted services directly through the app.
- Financial insight: Helps users balance recurring costs against impulse spending.
This approach responds to the demand from 95% of surveyed UK adults who find such consolidated subscription monitoring helpful for better financial management [3].
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