The second edition of the Ferratum Insights study presented the latest trends and changes in consumer behavior in 13 European countries in the current financial climate. This year, 14,696 respondents took part in the survey. Compared to last year, the results showed significant changes in spending habits, income distribution and financial outlook of respondents. :format(webp)/nginx/o/2024/02/25/15913522t1h9c4e.jpg)
Wallet. Illustrative photo. Photo: Peeter Lillevali
The second edition of the Ferratum Insights study presented the latest trends and changes in consumer behavior in 13 European countries in the current financial climate. This year, 14,696 respondents took part in the survey. Compared to last year, the results showed significant changes in spending habits, income distribution and financial outlook of respondents.
“The second edition of Ferratum Insights shows positive developments in the financial situation of European consumers. As inflation continues to slow from its peak, households in Europe are more optimistic about their financial situation and are increasing their non-essential spending. While this is certainly encouraging, we remain committed to supporting our customers responsibly in uncertain times,” said Kristjan Kajakas, CEO of Ferratum.
The annual Ferratum Insights survey of financial behaviour provides insight into how Europeans make financial decisions in difficult economic times, as well as consumers’ priorities and financial strategies. The survey was conducted among 14,696 respondents in 13 European countries.
55% of respondents from Estonia received a salary increase in the previous year, while in 2023 the figure was 30%. Thus, many people saw their salaries increase last year. The most important factors in improving the financial situation in Estonia were the increase in salaries (52.02%) and the end of loan payments (22.54%). At the same time, an average of 61% of Europeans saw their salaries increase this year, while last year it was 32%.
Compared to other European countries, the share of respondents who saved on food is higher in Estonia (29%), although this year the number has decreased by six percentage points compared to last year. According to the results for 2023, 35% of Estonian residents have reduced their food expenses. Therefore, either the financial situation of the survey participants has improved somewhat this year, or they are no longer able to save on food expenses.
Compared to other Europeans, Estonians are the most pessimistic about their prospects – 3.2 points on a 5-point scale. Finns are slightly less pessimistic – 3.29 points. And the biggest optimists are Romanians, 4.05 points.
When asked “What factors played the greatest role in improving your financial situation?” in Estonia, the most common answer (52.02%) was salary growth, followed by stopping loan payments (22.54%) and more serious expense management (20.23%).
On average, in the countries observed, price increases had the greatest impact on people's self-confidence and close relationships. These two aspects suffered even more than eating habits and investment decisions. Here, Estonia generally follows the average trend.
The purposes for which people in the observed countries take out loans are quite different. While in Bulgaria (41%) and Sweden (38%) most loans were taken out to consolidate loans, in Estonia the most popular loans were car loans (27%) and home renovation loans (27%).
In the observed countries, the average financial situation expectations were rated at 3.57 out of 5, indicating moderate optimism. The most pessimistic expectations regarding the financial situation were in Estonia (3.2) and Finland (3.29), meaning Estonia is the last in the ranking.
Ferratum is the financial services division of Multitude Group with many years of experience in consumer finance. Multitude is a listed European fintech that provides digital lending and online banking services to retail consumers, small and medium-sized businesses and other fintech enterprises that are underserved by traditional banks.
