MONEYTREND 2024

October 28-30

CFPB focuses on Auto Finance Practices in latest Supervisory Highlights: CFPB

(Special Edition Auto Finance)

1. Introduction  

This edition of Supervisory Highlights focuses on the Consumer Financial Protection Bureau’s (CFPB’s) work to put the brakes on wrongdoing in the auto-finance market. The impact of this market on American families is significant. Auto loan debt exceeds all other household-debt categories except for home mortgages. As of the second quarter of 2024, Americans owe $1.616 trillion in auto loan debt.

The auto-finance market enables people to buy vehicles necessary for important life functions, such as driving to work, school, and medical appointments. But when auto-finance companies violate the law it can have serious consequences for families, from having to pay money they do not owe to losing their vehicle.

Read more at Consumer Financial Protection Bureau (CFPB) 

Mobile Banking Statistics 2024

Mobile banking, or the process of managing your finances though a mobile device like a phone or tablet, has become increasingly popular, with 44% of consumers using it as of 2021. The share of consumers using mobile banking has tripled in less than a decade, while the share of people banking online through a computer or directly at a branch has declined. Certain segments of the population use mobile banking more than others, though, as it’s most popular with younger generations and college-educated individuals.

Key Stats

• Mobile Banking Adoption Rate: 44%
• Region with the Most Mobile Banking Use: South (45.30%)
• Age Group with the Most Mobile Banking Usage: 15 to 24 Years Old (74%)
• Income Group with the Most Mobile Banking Users: $75,000+ (49%)
• Race with the Most Mobile Banking Use: Two or More Races (50%)
• Education Level with Highest Mobile Banking Adoption Rate: College Degree (48%)

Read more at WALLETHUB

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Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

The Future of Banking is Personal

New research from Q2 reveals surprising similarities in banking preferences across generations while highlighting opportunities for financial institutions to create more personalized experiences. By leveraging data and emerging technologies, banks and credit unions can build deeper relationships with customers of all ages.

While much attention has been paid to the unique preferences of younger consumers like Gen Z, Q2’s research, conducted in partnership with Harris Poll, found more similarities than differences across age groups regarding banking. A few key findings:

74% of consumers across all generations want more personalized experiences from their financial institutions.

66% are comfortable with their bank or credit union using their data to provide personalized experiences.

Read more at The Financial Brand

MONEYTREND 2024

October 28-30

Over half of Canadian workers have side hustle: survey

If it feels like everyone is hustling even after a long day at work, it’s because a majority of Canadians are, according to a recent report.

Overall, 53.4% of workers in Canada have a side hustle by selling goods through e-commerce, reports marketing firm Omnisend, based on a survey of 4,000 respondents.

The number of those hustling after work is even higher among workers in the United Kingdom (72%) and Australia (59.3%), and is lower among workers in the United States (51.9%).

But that’s not the only way side hustles are earning money outside of employment.

Read more at HCAMAG.COM

70% of Shoppers Say Payment Options Influence Where They Shop Online

Retailers continue to grapple with shopping cart abandonment. A February report by PYMNTS Intelligence and Adobe reveals insights that could help online merchants boost conversion rates and enhance customer loyalty.

The availability of preferred payment methods is a critical factor in consumers’ online shopping decisions. According to the report, 70% of consumers consider the availability of their preferred payment method to be very or extremely influential when choosing an online store. This preference appears to be a driver of cart abandonment rates across online platforms.

Online marketplaces seem to have a competitive edge in this area. The study found that 53% of shoppers believe online marketplaces are the best at offering their preferred payment methods. In contrast, only 22% of consumers hold the same view about brand websites. This disparity may explain why brand websites experience higher cart abandonment rates, with an average of eight abandonments in the last 30 days compared to six on retailers’ sites and seven on online marketplaces.

Read more at PYMNTS.COM

Financial Advice Boosts Customer Satisfaction. But It’s Got to Be Personalized

New research from J.D. Power finds that guidance and advice can increase satisfaction levels, but only if it's based on each individual customer's circumstances. Generic advice doesn't cut it anymore, in both digital channels and in-person financial wellness reviews.

Good news: Americans increasingly want to interact with their banks, face-to-face and via digital channels. The bad news: They hate one-size-fits-all content and communications.

So says the latest research from J.D. Power. According to Jennifer White, senior director, banking and payment intelligence, not every bank offers personalized guidance and advice, but those that go that extra mile have higher customer satisfaction scores. Her 2024 U.S. Retail Banking Advice Satisfaction Study found that while many customers want financial advice, only 42% overall recalled actually being given guidance and advice, suggesting that much of what’s offered is so generic that it doesn’t register.

Read more at The Financial Brand

Financial Institutions Are Missing on $240 Billion by Underserving Latino Savers, Report Shows

Latino savers, the fastest-growing demographic, show a 4.7% income growth rate and are eager to invest in tailored financial services.

Latinos represent a growing economic force in the United States, yet they remain underserved by the financial services sector. Financial institutions that tailor their services to meet the unique needs of Latinos could tap into an estimated $240 billion in potential revenue by 2030 - an increase of more than 50% compared to the $155 billion generated in banking, insurance, and wealth management in 2022, according to McKinsey's report "The Economic State of Latinos in America: Advancing Financial Growth.

Read more at LATINTIMES.COM

California's fast food minimum wage hike didn't cost jobs, study says

The average hourly wage for fast food workers rose 18% while employment was stable, a study found

California’s new $20 minimum wage law for fast food workers, effective April 1, 2024, raised wages without causing major price increases or job losses, according to a study by the University of California’s Berkeley Institute for Research on Labor and Employment.

Using an analysis of over 35,000 Glassdoor job postings, menu prices from nearly 1,600 restaurants, and Bureau of Labor Statistics (BLS) employment data, the results were compelling: The average hourly wage for fast food workers surged by 18%, yet employment levels remained stable.

Read more at QZ.COM