Updated research from Fair4All Finance identifies over 20 million people in financially vulnerable circumstances in the UK
The Fair4All Finance segmentation offers in-depth insights into six segments of people in financially vulnerable circumstances who are currently underserved or excluded from the market. This analysis delves into their financial needs, product ownership, behaviours and broader lifestyle factors.
This provides organisations with opportunities to better understand and serve these customers. By categorising these segments, organisations can develop tailored propositions and services for those in financially vulnerable situations.
This segmentation serves as a foundation for understanding both your current customer base and potential new customers, enabling you to use your data to identify and address the unique needs of these groups.
We have updated our 2022 segmentation analysis to reflect the impacts of the cost of living crisis and other global events. These new resources offer a deeper and refreshed understanding of the Fair4All Finance segments.
Learn more about the 20.3m people in financially vulnerable circumstances
Unsteady Starters
1.9 million people
Unsteady starters use Buy Now Pay Later (BNPL) and short-term credit to help their variable incomes. Many are on zero-hours contracts, and struggling to build savings as rising costs put pressure on incomes.
Squeezed and Sliding
4.5 million people
Squeezed and sliding are mortgaged and renting families who are seeing their savings deplete and their debts rising. Currently using more mainstream providers, pressures may mean they turn to alternatives.
Credit Crisis Families
3.9 million people
Credit Crisis Families are in a cycle of juggling and struggling with everyday bills and debts, with higher levels of poverty. They are using any available credit in all forms and generally have no savings, or very little that gets eaten up quickly.
Difficult Debts
3.5 million people
Difficult debts are higher income households with high debt levels. They’re struggling to repay their debts, with some missing payments. Increases to mortgage rates has put new pressure on them, but they are starting to build savings.
Forgotten Families
3.8 million people
Forgotten Families are an excluded group with little access to credit and low savings. There are high levels of poverty, many carers and people with health problems, and many reliant on benefits. They generally have low levels of debt.
(Un)golden Years
2.8 million people
(Un)golden Years are an older group, with a high number of retired people meaning less access to earned income. There are higher levels of physical health issues, and they are very worried about money, with a large proportion with no savings.
Access our reports and insights
Fill in the form below to get access to:
- Segment overview with pen portraits and personas
- Individual deep dives of insights for each segment
Contact
If you would like to know any more about our segmentation model, please contact Lauren Peel, Director of Marketing, Consumer Insights and Propositions on Lauren@fair4allfinance.org.uk
Methodology
The Fair4All Finance segmentation model, developed in 2022 in collaboration with CACI and Trajectory, combines data from multiple sources. While segmentation typically has a lifespan of three to five years, recent events like the ‘cost of living’ crisis have prompted a review and refresh to maintain its relevance and effectiveness. To refresh the data, Fair4All Finance worked with Trajectory in December 2023 to run a detailed online survey of 3,101 people in financially vulnerable circumstances, combined with statistical analysis from CACI, using their Fresco and Ocean data.