Consumers take greater control of their finances

27 million (57%) British banking customers are more confident about how they manage their finances than ever before, as increased awareness about financial matters is at an all time high - reveals Lloyds TSB.

British consumers appear to be emerging from the depths of the recession with enhanced financial insight. The latest research shows how consumers are taking more control of their finances, as one third (32%) are more in control than in previous years.

One of the main proof points on how consumers are managing their finances is the decline in overdraft usage, Of those surveyed, one in two (52%) has at some point used an overdraft in the past, although the trend seems to be diminishing, nearly half (46%) use their overdraft a lot less now than in previous years and more than one third (34%) have not availed of their overdraft facility in at least one year.

The financial crisis has contributed to money management improvements for over 6 million consumers, whilst over one million people feel the tools provided by their banks have contributed to enhanced financial control.

Jatin Patel, Lloyds TSB said: "We are always looking at how we can help consumers take control of their finances.  Tools such as free mobile banking and text alerts have been well received by our customers. Since the service became free there has been a two fold increase in the number registrations.  Feedback from our current account holders say free text alerts help them keep track of their spending and avoid slipping into the red when they don't want to.   It's great to see consumers' increased appetite for managing their money and we will continue to work with our customers to help them take more control."