Released today, the latest Australian Consumer Financial Wellbeing Report analysed the aggregated transactional data of more than five million CBA customers for the 2022 March quarter to better understand the current financial wellbeing of Australians.
The report applies a unique methodology from the Melbourne Institute and CBA, which combines five major indicators of financial wellbeing to produce a single score, from zero (low) to 100 (high) calculated on 12 months of data. As at March 2022, the average observed financial wellbeing score was 50.0 out of 100, down 1.1 points from the peak in March 2021 - but 2.6 points higher than two years ago.
Ben Grauer, CBA’s Head of Financial Wellbeing said: “We can see from this latest report that for many Australians, building a savings buffer appears to have helped offset external pressures that could have otherwise undermined their financial wellbeing.
“Having this kind of deep and ongoing understanding of what affects customers’ financial wellbeing is critical. This report gives us an unparalleled view of Australian society and the extent of Australians’ financial obligations, financial freedoms and control, and their sense of financial security. In turn, it helps us develop the right digital experiences and features to help customers improve their financial wellbeing with easier ways to manage their money.”
Professor de New also said: “The proportion of Australians experiencing poor financial wellbeing outcomes has increased slightly year-on-year. However, we see a more positive outlook when we compare these figures against reported outcomes in March 2020, with a significant 4.0 point improvement in the proportion of Australians who are just coping or having trouble with their finances.
“Despite the pandemic, many Australians experienced quite healthy monthly inflows of income during this reported period. When we look at this measure alongside what is happening in our economy and the elevated levels of precautionary savings being accrued, it tells us that Australians are doing the right thing and preparing for possible impacts to their finances.”
Simple steps to improve your financial wellbeing.