What is Ferratum Summer Barometer 2020 – Covid-19 Edition?
Since 2014, Ferratum Group has asked its customers to share their spending habits. The survey is conducted twice a year — once during the Summer holidays and, again, just before Christmas.
The purpose of the surveys is to review our customers´ spending behaviours during the holidays, explore what types of purchases will be made, and how spending differs between countries.
This time, the survey was a little different exploring more the current Covid-19 situation. We asked our customers how did Corona Virus World Pandemic affect their lives and spending behavior, what did they spend the most money on during isolation, what are their plans for upcoming months and how did they manage their finances. We also asked about online shopping and favourite payment method and what do they fear most in regards to Covid19.
In our special Covid19 edition – with almost 15,000 respondents – we’re excited to share the results of the FERRATUM BAROMETER 2020™
How did the corona virus affect the lives of 15,000 people from 11 Ferratum countries around the globe?
The 12th edition of ferratum‘s international consumer behaviour survey has all covid-19 questions in regards to spending and this year’s financial plans.
Ferratum Group’s Summer Barometer™ 2020 – Covid-19 Edition results are announced, marking the 12th consecutive successful survey. Almost 15,000 households participated in the bi-annual survey which explored summer consumer spending behavior across 11 international countries. Data included how the Coronavirus World Pandemic affected their lives and spending behavior, what they spent the most money on during isolation, what their plans are for upcoming months, and how did they manage their finances. We also asked about online shopping and their favorite payment method, and what they fear most in regard to Covid-19.
This year ‘s results show that 66% of the respondents will spend less money during the Summer holiday season, when compared to the same period last year, while only 8% indicated they will spend as much or more than last Summer. The results show that more than 50% of the respondents have been affected by the worldwide pandemic and they have cancelled their Summer plans. 25% have cancelled international travelling, while 15% cancelled their plans of buying a car this year. 10% had plans to purchase a new house, but they would rather delay their plans and focus on savings versus big spending.
Cancelling the plans might be due to the fact that 13% of the respondents mentioned they have lost their job and are currently unemployed because of Covid-19 layoffs, and at the same time 18% received a salary reduction for the immediate future. 58% are the lucky ones who were not affected financially, and they still have their job and salary level as before Covid-19.
WE ARE ALL IN THIS TOGETHER! Let’s look at the bright side: Social distancing has brought us closer together.
We may be apart, but Covid-19 has brought us closer. Working remote also makes us build even stronger connections. The Ferratum International survey shows the Coronavirus World Pandemic affected everyone on different levels, but it also helped us develop new hobbies, live a healthier life, learn how to better manage our finances, appreciate the little things in life and also brought us closer to our family and loved ones.
During these past months people watched TV as main activity (15%), probably to be up to date with the Covid-19 news and updates, Videocalls and phone calls with friends and family (13%), still spending time outdoors for daily walks or workout where allowed (11%) and also watched Netflix and online streaming in general (10%).
Humans are social creatures and yet we have been asked to live in isolation. Guess what people missed most and is first thing they’ve done after isolation? That’s right: visiting their family (18%) and meeting with friends and loved ones (16%) as first 2 choices. People also miss going out, eating at restaurants and having a drink at a terrace or local bar. International travel, going to the seaside, social and cultural life (cinema, theater, concerts), even domestic travel is something they will like to do as soon as its allowed. At the end of the chart with only 3% we can find the “going back to the office“, respondents didn’t miss office life very much. Might be because they have learnt to work remotely or they just want to have a regular Summer holiday and be allowed to go back to their life before Covid-19.
SPENDING IN RELATION TO OTHER COUNTRIES
-
Bulgaria
204
86%
-
Croatia
171
72%
-
Latvia
117
50%
-
Romania
117
49%
-
Australia
101
43%
-
Grand Total
100
42%
-
Germany
98
41%
-
Norway
88
37%
-
Finland
80
34%
-
Estonia
79
33%
-
Sweden
74
31%
-
Denmark
69
29%
How did Corona Virus affected your employment situation?
- I am still employed and no change in my salary
- I am still employed but got a reduction in my salary
- I lost my job and am currently unemployed
- My job agreement is on pause and I receive government payment support
How did Covid-19 affect your life?
-
I canceled all my traveling plans this year
3.8
-
Given the economic situation, I need to be careful how I spend my money
3.8
-
I started to enjoy and appreciate more the little things
3.7
-
I cut back on my spending
3.4
-
Keeping in touch with friends and family helped me get through the isolation much easier
3.4
-
I fear about another Covid-19 wave
3.3
-
I developed new hobbies and healthy habits during this period
3
-
My monthly income have been affected/ Lower salary
2.6
-
My menthal health suffered during Covid-19
2.5
-
I am concerned about losing my job
2.5
-
My ability to work have been reduced because of Covid-19
2.4
-
I managed to do some savings during this Covid-19 period
2.1
-
My family and friends health have been affected by Corona Virus
2.1
Favourite activities during Covid-19 isolation:
-
Watching TV
15%
-
Talked to friends/ family
13%
-
Spending time outdoors
11%
-
Online streaming (e.g. netflix)
10%
-
Reading books
7%
-
Social Media - Tik Tok, Instagram
7%
-
Playing online games
6%
-
Working remotly
6%
-
Remote learning with your kids
6%
-
Online shopping
6%
-
Developed new hobbies (meditate, etc)
5%
-
Social games (puzzle, monopoly..)
4%
-
Non-gift clothing for yourself or family
3%
-
Online fitness
2%
Household spending forecast 2020
-
Less than last year
66%
-
Same as last year
26%
-
More than last year
8%
2020 Bigger spenders
When it comes to 2020 big spenders, 86% of the monthly income will be spent during Summer in Bulgaria, followed by Croatia with 72%, Latvia 50% and Romania where only 49% of the monthly income will be spent on Summer plans. At the other end of the chart we find Nordics spending about 30% of their monthly income for the Summer activities. (Sweden 31% and Denmark 29%).
Spending less, saving more
28% of the respondents from 11 countries said they are planning to spend a maximum of 200Eur over the next 2-3 months, 12% will spend around 1300Eur, while only 9% will spend more than 2000Eur.
Respondents are planning to cover their Summer spending this year with 45% tapping into their savings, while 31% will cover them with a Ferratum Loan. 35% didn’t take a loan lately because they didn’t need money, while 25% needed financial help but they didn’t access Ferratum Loans being concerned they couldn’t pay it back. 20% mentioned they have spent less money lately being at home during isolation time.
Biggest spending during Covid-19 isolation
When asked what they spent their money on the most during past months while in isolation, more than 50% (52%) stated groceries were their main expenses, followed by home improvements (13%), clothes and shoes (12%) and personal care products (10%). People also supported local businesses and made the choice to order food from their favourite restaurants (7%).
The future is digital! Cash loses ground, online payments are increasing
Online payments are preferred by 52% of the respondents, 25% still use cash on delivery and the other 25% would choose bank transfers when ordering online. The most digitalized countries when it comes to online payments are Norway (86%), Australia (79%) followed closely by Denmark (77%). At the end of the chart we find Finland (28%) and Bulgaria (27%), Finland preferring bank transfer payment methods (52%) while Bulgarians are more traditionalists preferring cash on delivery (71%).
How much do you think you will spend during next 2-3 months?
-
0-200 €
28%
-
201-400 €
15%
-
1201-1400 €
12%
-
401-600 €
12%
-
601-800 €
7%
-
801-1000 €
5%
-
1401-1600 €
5%
-
1001-1200 €
3%
-
1601-1800 €
3%
-
1801-2000 €
3%
-
2001-3000 €
3%
-
3000 € +
3%
Biggest spending for the upcoming months:
-
Groceries
23%
-
Home furnishings
11%
-
Financing children’s needs
10%
-
Domestic travelling
10%
-
Gardening or DIY
9%
-
Non-gift clothing for yourself or family
9%
-
Clothing and fashion
7%
-
Electronics for home
5%
-
Social activities
5%
-
Well-being services, spa
3%
-
Attending events
3%
-
Travelling abroad
3%
-
Fitness ecquipment for home
2%
-
Luxury products
1%
Online vs street shopping:
- Traditional shopping (street shopping)
- Online shopping
When doing online shopping what payment method do you choose?
- Online card
- Cash payment on delivery
- Kontanter betaling ved levering
Most money spent during isolation when doing online shopping:
-
Groceries
52%
-
Home acquisitions
13%
-
Clothes and shoes
12%
-
Personal care products
10%
-
Ordering food from restaurants
7%
-
Toys for kids
3%
-
Fitness or sport accessories/equipment
2%
-
Social games such as monopoly
1%
Canceled of delayed 2020 plans because of Covid-19:
First thing after isolation/ what was missed the most:
-
Visit my family
18%
-
Meet with my friends
16%
-
Restaurants/ Terraces
10%
-
International traveling
9%
-
Movies, theaters, concerts
9%
-
Domestic traveling
8%
-
Go to the seaside
8%
-
Outdoor shopping / shopping center
6%
-
Drinks / pubs/ clubs
5%
-
Outdoor sport
4%
-
Spend time in beauty salons
4%
-
Go to the office
3%
How are you going to finance your spending?
- With savings
- Partly with Ferratum Loans
- Partly with consumer credits
- Partly with credit cards
- Partly with loans from other financial institutions
What's the reason you didn't take a Ferratum loan lately?
- I didn't need money
- I am concerned that I couldn't pay it back
- I spent much less money lately
- I got financial support from friends and family
- I took a loan from other financial company
How important is for you the topic of sustainability & social responsibility:
- Very important
- Somehow important
- Rather not important
- Not at all important
Would you personally be willing to contribute into sustainability-related initiatives:
- Most likely would
- Most likely would not
- Definitely would
- Definitely not
Online vs Street shopping
68% of the respondents still prefer street shopping vs online. This is different compared to previous years, and the explanation is simple: people miss going out shopping, as the past couple of months have been in lockdown and purchasing everything online.
Over half of Swedish people prefer to continue shopping online (62%) while the majority of remaining countries continue to shop offline, once they will be allowed to do so again.
Top summer spending for 2020
Respondents from all 11 countries would spend the most money on the following three activities: groceries (23% of their budget), home furnishing (11%), financing children’s needs (10%) and domestic travel (10%).
All countries placed in the top of their main spending Groceries, only Estonia mentioned that Domestic travel will be the biggest spend (17%).
Top spending behaviour:
Australia
Bulgaria
Croatia
Denmark
Estonia
Finland
Germany
-
Groceries
22%
-
Gardening or DIY
12%
-
Clothing and fashion
11%
-
Domestic travelling
9%
-
Social activities
9%
Latvia
Norway
-
Groceries
22%
-
Domestic travelling
15%
-
Social activities
10%
-
Home furnishings
8%
-
Gardening or DIY
8%
Romania
Sweden
-
Groceries
24%
-
Domestic travelling
13%
-
Social activities
10%
-
Gardening or DIY
9%
-
Home furnishings
8%
How was the Ferratum Group Summer Barometer 2020 ™ Covid-19 edition conducted?
The survey was conducted by the Ferratum Group who surveyed its active customers in 11 International countries via web survey with a standardised questionnaire. Incomes are stated in local currency, and relative Summer consuming is calculated by the ratio of a family’s monthly disposable income in each country.
Almost 15,000 households participated in the survey. Respondents were aged from 18 to over 61y. 57% of participants were women. The average available net income of participating households was between €827 – €3672. The average household size among the respondents was 3.5 persons.
In addition to demographic factors, respondents were asked about their disposable monthly net income, how the Coronavirus World Pandemic changed their life and spending behavior, what they spent money on during isolation, what their spending plans are for the upcoming months and what they fear the most regarding Covid-19.
About Ferratum Group:
Ferratum Group is an international provider of mobile banking and digital consumer and small business loans, distributed and managed by mobile devices. Founded in 2005 and headquartered in Helsinki, Finland, Ferratum has expanded rapidly to operate in 20 countries across Europe, Africa, South and North America, Australia and Asia.
As a pioneer in digital and mobile financial services technology, Ferratum is at the forefront of the digital banking revolution. Ferratum has approximately 680,000 active customers that have an open Mobile Bank account or an active loan balance in the last 12 months (as at 31 March 2020).
Ferratum Group is listed on the Prime Standard of Frankfurt Stock Exchange under symbol ‘FRU.’ For more information, visit www.ferratumgroup.com.
