Today we have more choice than ever in how we manage our money. In this issue of Reflecting Ireland, we look at how we use digital banking services, card payments and cash. We get an understanding as to how we balance the need for convenience, security, and protection against fraud. We also look at the methods fraudsters use when attempting to get our money, and how effective they are. Lastly, we examine our preferences for the use of technology versus the tried and trusted world of professional advisors when navigating the world of money.

Digital Payments and Banking

• On average, 95% of us use digital banking services. This increases to 100% for 18-24 year olds.
• Under 35s are significantly more likely to be heavy users of mobile payments and other digital wallets.
• Banking apps come out on top for most helpful in budgeting money and tracking spend.
• Women are significantly more likely to manually budget their money than men.
• More than 8 in 10 believe there is still a need or preference for cash when making certain payments – tipping, children’s pocket money and nights out being the top three.

Human vs. Tech-led

• Preference for most banking behaviours is led by in-person – particularly when it comes to key financial decisions such as taking out a mortgage or pensions and investments.
• Advancements in banking tech have provided the greatest aid to a better understanding of spending and knowledge of fees and charges.
• Almost 3 in 4 are worried that AI developments will lead to more sophisticated fraud.
• Women are more concerned about the future impacts of AI than men, while younger age groups are more comfortable than older groups.

Fraud

• Since 2022, there has been a significant drop in numbers reporting having experienced an attempted financial fraud while more than 1 in 4 claim to have been a victim.
• Smishing, phishing and vishing continue to be the most common type of attempted fraud experienced.
• The conversion rate of those who have experienced card skimming becoming victims is on the rise and this method continues to have the highest success rate in defrauding people.
• A quarter of us always shop in physical stores to avoid making online payments.

Mood of the Nation

• The cost of living maintains the top position (34%) as our most important issue to be addressed. Immigration, is second at 14%. The price of housing is third at 13%.
• Looking at the economy, there has been little change over the last three months with 20% believing we will be in a better position this time next year. The one-year trend shows a significant decline in those who expect it will get worse (-9%pts).
• When considering our personal finances, 18% believe they are better off versus one year ago. This is a marginal decline from last quarter (21%). Those who feel worse off is unchanged at 46%. 

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