FCA reveals the financial experiences of people in the UK: Satisfaction with overall financial circumstances is particularly low in London

Today’s report finds that the level of satisfaction with overall financial circumstances is particularly low in London. Just 16% of Londoners are highly satisfied with their financial circumstances, compared with the national average of 21%.

Financial Lives is the FCA’s survey of nearly 13,000 adults and is the largest tracking survey in the UK specifically looking at consumers and their use of financial services.

The report shows a number of differences in how people in different areas of the UK, including London, experience financial services, such as:

• In London, a lower proportion of people use consumer credit products to borrow money compared with the UK average – 40% compared to the UK average of 46%.
• The proportion of adults in London with characteristics of potential vulnerability is lower than the national average - 47% compared to the UK average of 50%.
• London has the highest level of over-indebtedness compared to the rest of England.  17% of Londoners are over-indebted compared to 14% across England.
• 4% of Londoners do not have a bank account compared to the UK average of 3%.
• 34% of adults in London have no private pension provision. This is compared to the UK average of 31%.
• The State Pension is the main source of income in retirement for 53% of retirees in London. This is compared to the UK average of 44%.
• A greater proportion of adults rent in London (42%). This is compared to the national average of 29%.
• There is a much greater proportion (23%) of people with a mortgage in London whose mortgage debt is at least four times their household income. This is the highest of all the nations and regions of the UK, with the North East being the lowest with only 4%.
• On average, adults in London owe £3,280 in unsecured debt. This is similar to the UK average of £3,320.

Andrew Bailey, FCA Chief Executive, said: 'This survey shows just how different the experience of financial services is for consumers across the country. That’s important for us, as we shape financial services policy. But it is also important for firms, as they decide how best to serve their customers.'

The FCA has released weighted data tables which provide details of the survey findings so that local decision-makers and other organisations can use the information to consider what they can do to help support people who may be struggling financially. The FCA’s previous Financial Lives report told the financial story for six different age groups to show key themes at each life stage.

Notes to editors

1. Read the FCA’s June 2018 report, The financial lives of consumers across the UK[1]
2. Read the Financial Lives 2017 report, Understanding the financial lives of UK adults[2]
3. Potential vulnerability refers to those adults who may suffer disproportionately if things go wrong because they have low financial resilience. It also covers those who may be less able to engage with their finances or with financial services. The reasons for this can vary from suffering a recent life event (such as redundancy, bereavement or divorce), low financial capability, or a health‑related problem that affects a person’s day‑to‑day activities a lot. Being defined as potentially vulnerable does not mean someone will necessarily suffer harm.
4. ‘In difficulty’ refers to adults who are the least financially resilient, as they have already missed paying domestic bills or meeting credit commitments in at least three of the last six months.
5. Over-indebtedness is defined as considering a heavy burden keeping up with domestic bills and credit commitments, or missing any credit commitments and/ or any domestic bills in any three or more of the last six months.
6. On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
7. The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
8. Find out more information about the FCA[3].