New research produced by London Economics, on behalf of the Keep Me Posted (KMP) campaign, is one of the biggest studies of behavioural economics testing the effectiveness of paper versus online statements in money management. The online survey found that consumers were more likely to understand the information they were given, take appropriate action, and make better financial decisions.
More specifically, the report found that;
- People are twice as likely to remember their bank balance if they receive statements by post (82% vs 32% who receive statements online)
- ‘The Postman Prompt’ enabled twice as many consumers to correctly identify the value of the largest payment into their account (71% vs 30% who receive statements online)
- Three quarters of customers who received their statement on paper where able to correctly access the financial health of their bank account compared to less than half of those receiving information online (75% vs 48%)
- Consumers with ‘unhealthy’ statements were more likely to choose to curb their spending as a way of improving their finances if they received a paper statement (90% vs. 77% who receive statements online)
Rt Hon John Thurso MP, Member of the Treasury Select Committee, and supporter of the campaign said: "There is a wedge developing between those who can manage their finances online and those who can't, or don't want to. I welcome this report. It backs up what I've believed for some time.
"I believe it's very important to ensure that consumers have the right to choose how they receive their bills and statements, and importantly are not charged for doing so. Policy-makers and legislators should look closely at how to protect people's right to choose."
Keep Me Posted is a partnership of over 70 businesses, campaigning for the consumer’s right to choose, without penalty, how they receive important financial information.