Billing and the cost of living: 2/3 of Brits want support from utility providers
As the cost-of-living crisis continues, our new research shows that an estimated half of consumers (51%) would welcome more control over how and when they make their utility bill payments. And an estimated 21% would switch providers if offered the flexibility to change the amount they pay each month. But what solutions are in the works to help? Here’s how variable recurring payments can provide more options.
Tink’s new data indicates that 66% of consumers surveyed want more options for their utility payments as the cost-of-living crisis continues
An estimated 21% would switch utility providers for the ability to change the amount they pay each month
Variable recurring payments can provide solutions as a vehicle for utility businesses to empower their customers with added control and transparency.
Offering more options for customers – and unlocking loyalty
As consumers demand greater control over monthly payments, utility providers have an opportunity to unlock greater customer loyalty – by investing in more adaptable payment methods like VRP. According to our new research, an estimated two thirds (66%) of UK consumers believe that in the continuing cost-of-living crisis, utility providers have a duty to support customers struggling to pay their bills.
Control and support are top of consumers’ minds
Consumers are expressing a need for greater flexibility and support with monthly payments as uncertainty continues around increasing energy price caps. One in five (18%) UK consumers surveyed are struggling to stay on top of changes in their regular payments – including increases in monthly utility bills.
Nearly one in five (18%) respondents have defaulted on their regular bills and gone into a debt collection process. Additionally, one in five (21%) people surveyed have also forgotten a bill and been charged for going into their overdraft.
Based on this research, it’s clear that when dealing with monthly payments, consumers want much more control. An estimated half of consumers (51%) would welcome more control over how and when they make their utility bill payments.
The opportunity to expand choices
For utility providers in a competitive energy market, there’s an opportunity to improve the payments experience and to serve their customers in a way that better fits the flow of incomings and outgoings from their account.
An estimated one in five (21%) consumers would switch utility providers if offered the flexibility of changing the amount they pay each month. Moreover, 17% would consider switching providers for the ability to change the date of their bill payments.
Variable recurring payments are a vehicle for providers to give consumers more control, for example, of their maximum amount per payment. This helps people avoid scenarios where they might be surprised by an usually large bill payment.
Investing in more pliable payment methods as a utility provider has the potential to reduce churn, and enjoy greater customer acquisition and retention.
“During the colder months, when energy and utility bills typically rise, consumers are under increasing financial strain - meaning growing demand for utilities providers to offer more support with managing their bills. With payment flexibility a particular sticking point, investing in data-driven financial services enables utilities providers to give customers greater control over their payments – which is especially important during difficult economic times,” says Andrew Boyajian, VP of Product for Payments & CX at Tink.
“Open banking solutions like VRP can help utilities providers offer support to customers struggling to stay on top of monthly outgoings, with features such as agreed maximum payment amounts and automated retries meaning both parties can have more peace of mind and the ability to adapt to changing circumstances. More flexible payment methods can also be powered by VRP, for example, an agreement with the utility provider to split bills into multiple payments.”
Get in touch to explore the potential of technology such as VRP for empowering your users, improving experiences and building loyalty today.
—
About the research
Consumer research was conducted by Censuswide on behalf of Tink in September 2023, amongst 2,000 nationally representative UK respondents.
Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa Inc. neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.
More in Open banking
2024-10-08
6 min read
Lending essentials: how enriched data solutions help lenders tackle constraints
Enhancing your affordability assessment with Tink’s data-enriched solutions helps you put an end to inaccurate data, prevent fraud in loan origination and stay compliant – read on to explore the benefits.
Read more
2024-09-24
4 min read
Why Pay by Bank fits luxury retail like a glove
Pay by Bank offers a solution that addresses the potentially higher transaction fees and fraud risks while enhancing the customer experience for luxury retailers.
Read more
2024-09-03
5 min read
Customer interview – Nordea on consumer engagement
We spoke to Nordea Product Manager Sami Mikkonen about enhancing their mobile app using open banking technology, focusing on improving consumer engagement and financial management.
Read more
Get started with Tink
Contact our team to learn more about what we can help you build – or create an account to get started right away.
