Report: Financial situation of bank customers deteriorates as inflation persists

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A growing number of bank customers say inflation is weighing on their finances, including those classified as financially sound, according to the most recent monthly survey data from research firm JD Power. The company surveyed 4,000 retail banking customers in June and found that 70% of them said prices were rising faster than their incomes, up from 61% earlier this year. The largest month-over-month increase was seen among respondents classified as financially sound, the firm said.

Bank customers also expressed low levels of confidence in their ability to manage inflation, although the ratio of healthy and unhealthy customers remained relatively unchanged, JD Power said. At the same time, a growing number of customers are relying more on credit cards, even though higher balances will affect their credit rating.

“Customers with financial stress are more likely to agree that their credit score is more than getting a loan/borrowing money (75%) and, to that end, 41% of customers have a personal goal of improving their credit score within the next 12 months. This includes half of the vulnerable population and 48% of those under 40,” the firm said.

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