Connect with us

Finance

NEW REPORT: WORKERS IN FINANCIAL SERVICES USING LOAN SHARKS TO MAKE ENDS MEET

NEW REPORT: WORKERS IN FINANCIAL SERVICES USING LOAN SHARKS TO MAKE ENDS MEET
  • 51% of workers regularly borrow in order to meet day-to-day financial needs
  • 45% of workers in financial services have a monthly income fluctuation of more than 10%

A nationwide study of the financial wellbeing of UK workers ‘The DNA of Financial Wellbeing 2017’ report1, reveals that 33% cite finance as their biggest concern. However, nearly half of HR directors think that their employees biggest concern is work life balance (48%) and career development (43%), demonstrating a mis-alignment between employee and employer.

The findings from Neyber, the financial wellbeing company, highlights that 85% of workers aged 18-24 in financial services are borrowing money to meet their basic financial needs, with 46% of those workers using credit cards and 15% turning to a loan shark to make ends meet.

An increase in so-called zero hour contracts means that 45% of those working in financial services have an income fluctuation of more than 10% each month. This is significantly undermining people’s ability to manage the money on a day-to-day basis, budget, plan and save.  More over this fluctuation in income is contributing to financial exclusion due to an inability to access cost effective financial products.

With mental health currently high in the public consciousness, Neyber has revealed that almost 69% workers aged 18-24 are suffering stress as a result of their financial situation.

Monica Kalia, Co-Founder and Chief Strategy Officer of Neyber said:

“At a time when personal finances are under increasing pressure, employers have a duty to offer greater support to their employees.  We are calling for more companies to provide a facility to allow employees to have access to financial education tools, saving facilities and access to low cost loans. Financial wellbeing should be included in every company’s employee engagement strategy.  It’s the right thing to do and a financially resilient workforce can only be positive for the company and the UK economy as a whole.  

Monica Kalia continues, “The good news is that more businesses realise that staff with financial worries also struggle at work and firms are waking up to ways to help them.”

The report also highlights a divergence between employer engagement around financial wellbeing and the wishes and needs of their workers.  For instance, 16% of employees have access to financial education and awareness from their employer whilst 36% of HR directors rank performance management as their main priority.

To find out more about Neyber, please visit the website: www.neyber.co.uk

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now