Aussies remain upbeat despite JobKeeper end, says study
Australians are feeling upbeat about their financial future, despite the end of government support schemes.
According to the latest Experian Global Insights Report, 42% of Australians are comfortable with their finances, up 17% on the tally from October 2020.
A third are still struggling with payments, but only 10% are cutting back on discretionary spending, indicating that confidence is still high.
“Australia’s quick revival of the economy since the pandemic began reflects the initial success the government assistance programs have had throughout 2020,” said Mat Demetriou, General Manager of Decision Analytics at Experian. “As a result, it’s not surprising the findings from our Global Insights Report clearly outline a bounce back of consumer confidence in their financial wellbeing compared to when they were first asked in July 2020.”
“We’re yet to see what the default rates are now that JobKeeper has ended but it’s reassuring to see businesses are shifting their focus to improving their credit and decisioning processes as a priority. As more Australians come off the COVID-19 assistance programs, being prepared for further assistance requests from their customers is a positive move.”
With JobKeeper now over, one might expect uncertainty to rise.
“Our credit bureau data revealed that there was a correlation between newly opened credit accounts and an increase in new defaults in 2020, however this isn’t necessarily indicative of what’s to come in 2021,” he said.
“Without a clear picture of what the end of JobKeeper will look like for Australians, it’s a very positive sign to see businesses taking it upon themselves to best prepare for a year of uncertainty. Ensuring their collections processes are at a high standard and their decisioning tools are efficient and effective are appropriate steps lenders can take to better protect Australians from falling into unmanageable debt.”
Despite floods, bushfires, drought and the pandemic, Aussies might be expected to be more cautious in their outlook.
“Every individual’s situation is different, so it’s so important that in a fluid environment businesses have access to and are continuously checking in on their customer’s financial situation,” said Demetriou. “This is where investment into automation and real-time decision analytics is such an important consideration for lenders to ensure the most effective and efficient approach is taken.”
“Many businesses are even taking it a step further and applying insights into their digital apps, allowing them help customers with saving goals through the power of data analytics.”
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