Santander US Paths to Prosperity Research Finds Consumers Resilient Though Pressures Mounting
October 30 2023 - 8:54AM
Business Wire
- 77% of middle-income Americans believe they will achieve
financial prosperity in the next 10 years.
- Of those responsible for student-debt payments, 7 in 10
expected to be impacted by resumption of federal student-loan
payments.
- Two-thirds have not yet taken advantage of rising interest
rates on savings.
- Auto access remains essential to achieving financial
prosperity.
Santander Holdings USA, Inc. (“Santander US”) today announced
findings from a new survey that shows American consumers are
optimistic about their futures despite mounting financial
pressures. The results found 68% of middle-income households
believe they are on the right track toward achieving financial
prosperity, which remains unchanged from Q2.
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However, prolonged inflation and the resumption of federal
student-loan payments are clear economic stressors for
middle-income households. More than 7 in 10 say they are unable to
save as much as a result of inflation, which remained the number
one obstacle to achieving prosperity. Approximately a third of
respondents – across all generations – are responsible for
student-loan debt, with 69% of this group stating that the
resumption of federal student-loan payments is a challenge to
achieving financial prosperity.
The study also revealed that many middle-income Americans are
missing out on an opportunity to offset these inflationary
pressures by earning more on their savings. Interest rates on
savings have climbed steadily to the highest levels in decades, yet
two-thirds (66%) of middle-income Americans have not moved money
into higher-yielding accounts to take advantage of these rates
since the beginning of 2022. A lack of financial knowledge may be a
contributing factor to the inertia. Just 1 in 10 respondents (11%)
could answer four questions about savings accounts correctly. Those
who responded to all correctly (41%) were more likely to have moved
money to take advantage of higher rates versus those who answered
all questions incorrectly (25%).
“Having the information needed to make important financial
decisions is crucial for reaching one’s financial goals,” said Tim
Wennes, Santander US CEO. “At Santander, we recognize our important
role in providing customers with the support and guidance they need
— in a way that is simple and easy to understand — so they can take
control of their decision-making. Conducting this research each
quarter provides us with essential insights, so that we can best
meet our customers where they are in their journey to financial
prosperity.”
The study, which built upon research conducted in the first and
second quarters, assessed middle-income Americans’ current
financial state and future aspirations, with a focus on how current
economic conditions have impacted their households. It also
identified areas for economic growth and demand, including
entrepreneurship, financial education, and vehicle ownership.
Auto Access The majority of
middle-income Americans (76%) rely on a vehicle for their work
commute. However, gas prices and higher auto prices have made
vehicle access more difficult. To maintain access to their
vehicles, 7 in 10 (69%) are willing to sacrifice other budgetary
items. While half of respondents say they delayed purchasing an
automobile in the past year due to cost, demand persists with 41%
considering purchasing a vehicle over the next 12 months. A quarter
would be more likely to purchase a vehicle in the year ahead if
they are able to secure financing.
Entrepreneurship a Ticket to
Prosperity Business ownership was identified by
middle-income Americans as a driver of financial prosperity,
especially among Black (74%) and Hispanic (69%) consumers. While
47% of respondents expressed interest in starting a business, 60%
said financing was their biggest challenge. Additionally, roughly
half (51%) reported they lack the know-how to undergo the process
of starting a business.
This research on financial prosperity, conducted by Morning
Consult on behalf of Santander US, surveyed 2,213 American bank
and/or financial services customers, ages 18-76. Survey
participants had household income in the “middle-income” range of
$47,000 to $142,000. The study was conducted from September 7-8,
2023. The interviews were conducted online, and the margin of error
is +/- 2 percentage points for the total audience. The data was
weighted to target population proportions for a representative
sample based on age, gender, ethnicity, region, and education.
The full report and more information about the Santander US
survey is available here.
About Santander US Santander
Holdings USA, Inc. (SHUSA) is a wholly owned subsidiary of
Madrid-based Banco Santander, S.A. (NYSE: SAN) (Santander), a
global banking group with 166 million customers in the U.S., Europe
and Latin America. As the intermediate holding company for
Santander’s U.S. businesses, SHUSA is the parent company of
financial companies with approximately 13,700 employees, 4.5
million customers, and $168 billion in assets, as of December 2022.
These include Santander Bank, N.A., Santander Consumer USA Holdings
Inc., Banco Santander International, Santander Securities LLC,
Santander US Capital Markets LLC and several other subsidiaries.
Santander US is recognized as a top 10 auto lender, a top 10
multifamily lender, and a top 10 commercial real estate lender, and
has a growing wealth management business. For more information
about Santander US, please visit www.santanderus.com.
Santander Bank, N.A. is a Member FDIC and a wholly owned
subsidiary of Banco Santander, S.A. © 2023 Santander Bank, N.A. All
rights reserved. Santander, Santander Bank, the Flame Logo are
trademarks of Banco Santander, S.A. or its subsidiaries in the
United States or other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20231030238461/en/
Media: Andrew Simonelli andrew.simonelli@santander.us
Caroline Connolly caroline.connolly@santander.us
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