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Opinion
Business leaders worried about post-Brexit threats
At a time when both main political parties have made separate pledges to tackle cyber- crime, research shows a worrying lack of preparedness among businesses, with 82% of firms identifying one or more threats to continuity because of Brexit; a view consistent across all sectors and major cities. All but one sector say data and cyber-
crime issues are the biggest threat to business continuity in a post-Brexit world. The research highlights that businesses feel exposed to – and unprepared for – a range of pressing data safety and cyber-risk issues (33%) and was a greater concern for 2020 than a range of specific Brexit challenges – such as the weak Pound (24%), supply-chain disruption (20%), and the employment of EU citizens (22%). Of the 33% of business leaders that
mentioned technology worries, the specific areas of concern comprised of: l Changes to the transfer of personal data between the UK and the EU (54%). l Vulnerability to cyber-attacks (42%). l Changes to the storage, purpose and processing of customer data (30%). These findings come less than 18 months
after GDPR was introduced, which has been followed by a series of widely-publicised data breaches involving major brands. Indeed, the survey suggests data safety becomes a bigger issue the larger the business. The larger firms polled were more than twice as likely than small businesses to see technology issues – including cyber-attack risks and data safety – as the biggest threat to business continuity in post-Brexit Britain (47% compared to 22%). Beyond technology fears, there were a number of additional
financial and
operational concerns for businesses in adjusting to the prospect of Brexit. Financial issues included the falling value of the Pound (24%) and disruption to flows of capital or changing investor appetite (14%).
Jim Gumbley Head of cyber security, ThoughtWorks UK
‘Financially literate, but debt dependent’
UK consumers are highly financially literate, yet very dependent on credit, borrowing more frequently than their European neighbours, according to the seventh annual European Consumer Payment Report from Intrum. As well as identifying nervousness over the
impact of a potential Brexit on personal finances, the report highlighted consumers’ mixed feelings over the benefits and dangers of financial technology. UK consumers score highly in terms of
financial literacy – 75% were able to match financial terms to their correct definitions, second only to Finland in the 24 countries surveyed. Despite this, UK consumers are heavily reliant on credit to fund lifestyles, borrowing money more frequently than their European peers. Of the 22% of UK consumers who have borrowed money to pay bills over the past six months, 63% have done so on more than one occasion (almost double the European average of 38%). The difficulties are exacerbated for
younger consumers, with 58% of 18 to 21 year olds surveyed forced to borrow money or reach the limt on their credit card in order to pay bills in the last six months. Many claim bills are outpacing income,
increasing their financial stress. Almost half (49%) say their bills are increasing at a faster rate than their income, and 35% believe worrying about this is having a negative effect on their wellbeing. Despite this, most are still managing to
save some money each month – 78% say they are doing so and 70% are confident or somewhat confident that they will be able to save for a comfortable retirement. Almost half (48%) are dissatisfied with the amount of money they are able to put aside. The risk of unexpected expenses is the top
reason for saving – 61% of UK consumers say this is their primary reason, followed by saving for retirement (42%). By contrast, a quarter of those surveyed (24%) admit that they would rather spend money enjoying today than saving for a comfortable retirement. When it comes to life goals, 57% are concerned that they will never be able to
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buy their own home – something 67% desire over renting. Technology is seen as an enabler by
many UK consumers, with 22% using their smartphone to avoid over-consumption and 67% saying technology makes it easier to manage their finances (above the European average of 59%). But this is a double-edged sword, with
56% concerned that the use of smartphone apps will tempt consumers into loans they cannot afford. In addition, 57% are worried that their personal details will end up in the wrong hands when they shop online. Social-media pressure is heavy, with half
of 18 to 21-year-olds saying it puts pressure on them to consume more than they should, compared with 31% of consumers overall. Mobile payments have so far failed to
capture public imagination – they are the preferred means of payment for only 8%, with debit cards, credit cards, and cash far more popular. UK consumers are also less likely to be influenced by sustainability than most Europeans. Only 29% have been motivated to limit
their spending by sustainability, compared with 42% on a pan-European level. While 42% of consumers expect to be
better off than their parents, the possibility of Brexit and a weakened EU is worrying some people. Of those surveyed, 42% express concern that this could have a negative impact on their personal finances. “UK consumers are more financially
literate than most of their European peers,” said Intrum’s UK MD Eddie Nott. “However, the reliance on credit to pay bills means that many do not have the reserves to cope with the financial impact of a significant life event such as job loss, illness or bereavement. These unpredictable events often lead to problem debt. “While we see consumers are keen to use
smartphone-enabled technology, concerns over data security and fraud remain, along with the pressure to overspend and the temptation to borrow more than they can afford.”
December 2019
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