Three per cent unbanked and a third ‘cannot pay bills’

Ian Rogers Fintech

While 47 per cent of consumers say that “they usually keep on top of their payments”, 35 per cent “admit that they did not have enough money”, a survey for neobank 86 400 has found.

Novelty features in the 86 400 banking app around anticipating upcoming bills (such as electricity) is one point of difference, as the Cuscal-backed selected yesterday as the day their service “becomes available nationwide”.

86 400 soft launched more than two weeks ago, and by last night its app was ranked fifth in Apple’s App Store behind those for three major banks (NAB missed out). The  top spot was held by the app for Up Bank, operated by Bendigo and Adelaide Bank.

Research commissioned from YouGov Galaxy shows up a lack of discipline across bank users overall in monitoring their periodic and recurring bills’ flow. 86 400 shared this research update to add context to their model and app design.

This study found 22 per cent of bank customers are having to make late payment fees every month on average.

“Overall, Australians are losing $4.01 per month in late payment fees for bills or subscriptions,” YouGov said.

“That is $75.1 million paid per month across Australia in late fees, or nearly one billion dollars a year”( in fact, $902 million).

Believe it or not, “7 per cent track all their bill payments with a spreadsheet.”

Eighty-eight per cent “have subscriptions services to pay for on a regular basis.”

In a measure of the circumstances of the underclass, “only 16 per cent overall have neither bills nor subscriptions,” YouGov said.

And in a snapshot of popular culture:

• 55 per cent have internet/wifi, while 61 per cent have mobile phone service subscriptions.
• 50 per cent have pay television subscriptions (Foxtel 19 per cent, Netflix 38 per cent, Other 10 per cent).
• 21 per cent subscribe to streaming music or video.
• 14 per cent have gym membership subscriptions.

The survey, conducted in early July, sought input from 1103 Australians aged 18 years and older. The report was based on 1064 (97 per cent) of those in the survey pool “who have a bank account”.

So 3 per cent are either unaware or even unbanked, on this snapshot, and one target market for 86 400.