NatWest Group Aims to Support 10 Million People Annually with Financial Wellbeing by 2027

NatWest Group Aims to Support 10 Million People Annually with Financial Wellbeing by 2027

(IN BRIEF) NatWest Group has set a goal to assist 10 million individuals each year in managing their financial wellbeing by 2027. They have already achieved a previous target of helping 2 million people save over £100 for the first time, fostering a savings habit and resilience. Through the use of digital tools and personalized engagements, such as financial health checks and credit score services, NatWest aims to reach its new target. Additionally, the bank has collaborated with charities to provide aid to those most in need, including distributing funds to survivors of domestic abuse and supporting community lenders to provide small grants. NatWest has also implemented measures like free access to credit scores for non-customers and fee waivers for personal mortgage customers facing financial difficulties. The bank is investing in training facilitators to deliver workshops on money management and fraud awareness.

(PRESS RELEASE) LONDON, 14-Jul-2023 — /EuropaWire/ — NatWest Group is planning to help 10 million people to manage their financial wellbeing every year by 2027, following data showing the scale of anxiety felt about personal finances.

Only one in five currently feel extremely or very satisfied with their current financial situation. The data was gathered through NatWest Group’s Digital Financial Health Checks* showing a need among for financial wellbeing support. Almost half (49%) couldn’t easily handle a large, unexpected cost right now (like a new boiler)**.

Supporting people with their financial wellbeing has never been more important with increases in the cost of living. Almost two thirds (64%) of respondents said the increased cost of living is impacting them.

The bank aims to reach this target by the end of 2027 through digital tools and personalised engagements, such as financial health checks, and the recently extended Know Your Credit Score service now available to non-customers.

Alison Rose, CEO, NatWest Group, said: “Supporting people to manage their money and reach their financial goals is central to our Purpose. We recognise the important role we play in helping people build their financial capability, and this new targeted support will ensure that people, families and business, right across the country are given the tools to take control and start to thrive.”

This work builds on the bank’s longstanding focus on financial wellbeing, and track record in helping people – the bank has recently reached a goal set in 2020 to help 2 million people to save more than £100 for the first time, helping to build a savings habit and resilience for the future. Over 1.46m customers have signed up to save using round-ups since its launch and have saved almost £240m.

Through the cost of living, NatWest Group has been partnering with charities to help those most in need. NatWest Group set up the Circle Fund with domestic abuse charity SafeLives in 2020 with a donation of £1m and has now distributed funding through community based services to over 2600 people for crisis support and to aid safety and recovery. Grants have included support to families involving more than 1500 children.

Ellen Miller, Interim Chief Executive of SafeLives said: “The Circle Fund has made a big impact on the lives of thousands of survivors of domestic abuse and their children right across the UK. The Fund has helped us to get support to where it’s needed most, via local domestic abuse services, 40% of which are small specialist organisations supporting marginalised communities.  It has given survivors freedom to rebuild their lives and it’s sobering that a relatively small sum of money can be life changing. “We’re delighted to have the support of NatWest, in helping people reach safety and live the lives they want after harm has happened. Domestic abuse is everyone’s business and together we can make it stop.”

Theodora Hadjimichael, CEO of Responsible Finance, said: “Every year, tens of thousands of people save money and avoid higher-cost and illegal lenders thanks to a Responsible Finance member. But community lenders can’t offer credit to everyone who applies. The NatWest Group and Responsible Finance Hardship Grant programme is an exact fit with why we exist: to help households make their financial position stronger. Through this partnership, NatWest Group is demonstrating leadership and purpose in the financial sector and we are really pleased with the success of this programme. It is heart-rending to hear the challenges so many are going through but we are grateful that these small grants are having such an enormous impact in homes all over the UK.”

In January this year NatWest Group distributed £900,000 to Responsible Finance to support Community Development Financial Institutions (CDFIs) in delivering small grants to individuals who can’t access lending. Over £245,000 has now been distributed to 2472 households/people. Around a quarter of those helped have been unemployed and three quarters earn less than £21K a year. Two thirds are single parents with children under 18***.

In a targeted move to support those managing the change in the cost of living, the bank stopped all fees and charges for personal mortgage customers in persistent financial difficulty from the end of April 2023, when receiving help from its specialist Financial Health and Support teams. NatWest Group also has 130 trained facilitators ready to deliver workshops on money management and fraud awareness and intends to train more during 2023.

NatWest Group has provided £47.8 million of cost-of-living support since January 2022 to personal customers, through measures such as debt consolidation, fee capping and suppression of interest.

Of those customers previously identified as being either in food or fuel poverty at the end of last year, the bank has been in touch with almost 1 million of them to help support their financial wellbeing.

*Unaudited data taken from NatWest Digital Financial Health Check question outcomes in the first 19 weeks of 2023 – 2,583 respondents who gave consent for this data to be used.

**Digital Financial Health Check survey outcomes 2023Contact

***People Management Insights – https://www.peoplemanagement.co.uk/article/1751835/single-parents-twice-likely-be-unemployed-than-coupled-parents-research-finds

Notes to editors:

• NatWest is today setting out its intent to help up to 10 million people in 2027 to manage their financial wellbeing and reach their financial goals through digital tools and personalised engagements, such as financial health checks.  This will reflect an annual incremental approach starting with 6.5 million people in 2023 and increasing on annual basis between 2024 and 2027, to reach 10 million in 2027. To be counted in for the number of people to manage their financial wellbeing in a year, individuals must use one of NatWest’s digital tools at least once in a 12-month rolling period.
• NatWest completed c.700K personal Financial Health Checks in 2022 and over 178K in Q1 2023.
• Since launch over 5m customers have used our award-winning Know Your Credit Score service more than 75m times.
• Since launch in December 2022, the NatWest Overdraft Engagement Hub has been viewed over 6m times by 3.5m customers.
• NatWest’s extended Know Your Credit Score service offers free credit scores, personalised insights and tips to manage and improve it with supporting tools that can allow you to simulate how future financial actions might change it, for example taking out a loan or new credit card.
• 10m target will be achieved through helping customers with free access to financial wellbeing tools and functionalities

Disclaimers

This is for media use and not a financial promotion

Information about Know Your Credit Score

Know Your Credit Score is free to use and available for those aged 18 and over with a UK, Channel Islands or Isle of Man address following a successful registration with TransUnion. All data is provided by TransUnion and you don’t need to be a NatWest customer.

Information about mortgages

NatWest, RBS and Ulster Bank mortgages are available to over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

This announcement contains management assessment (i) unaudited internal data derived from management systems that are not necessarily part of the internal controls and procedures over financial reporting that generate our audited financial statements, and which are considerably less sophisticated than the systems and internal controls for financial reporting and also includes manual processes; and (ii) unaudited financial, statistical and other information and data published by third parties. This may result in non-comparable information between organisations and between reporting periods within organisations as methodologies develop.

Whilst the information in this announcement is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of the [NatWest Group Economics Department], as of this date and are subject to change without notice.

Caution about Forward-looking Statements in this announcement.

This announcement contains forward-looking statements, aims, ambitions, estimates, intentions and plans, including but not limited to NatWest Group’s intention to help people to manage their financial wellbeing and reach their financial goals through digital tools and personalised engagements, such as financial health checks starting with 6.5 million people in 2023 and increasing on annual basis between 2024 and 2027, to reach 10 million in 2027.

Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, future growth initiatives, the outcome of legal, regulatory and governmental actions and investigations, the level and extent of future impairments and write-downs, legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, interest and exchange rate fluctuations, general economic and political conditions and the impact of climate-related risks and the transitioning to a net zero economy.

Accordingly, undue reliance should not be placed on these statements.

The forward-looking statements contained in this document speak only as of the date of this document and NatWest Group does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except to the extent legally required. This cautionary statement should not be regarded as a complete and comprehensive statement and should be read together with the ‘Risk Factors’ contained in the NatWest Group plc 2022 Annual Report and Accounts published on 17 February 2023.

Media Contact:

Andrew Neilson
Media Relations Manager
Andrew.Neilson@natwest.com
0777 197 3550

SOURCE: NatWest Group