An integrated analysis of transactional and survey data across the Fonto membership base reveals Australia's average Financial Wellbeing Score is 54. Under 35-year-olds with an annual household income less than $80,000 score lowest at 44, with over 55s earning more than $150,000 scoring the highest at 71.
When it comes to selecting financial products, Fonto’s Financial Wellbeing Score highlights significant differences, especially with Buy Now Pay Later (BNPL) products. Those with a below average financial wellbeing score tend to use necessity products such as personal loans and overdrafts, while those with an above average score tend to use convenience products such as credit cards and charge cards.
The widespread use of BNPL products masks the fact that people with a lower financial wellbeing score are more likely to make larger, less frequent purchases – BNPL plays a major role in helping them overcome significant financial hurdles.
By contrast those with a higher financial wellbeing score are likely to make smaller, more frequent purchases – they use BNPL because they can, not because they rely on it.
The Financial Wellbeing Score is a measure out of 100 based on six key statements and integrated with transactional behaviour at an individual level.
