WIREDGOV

Women in the UK who use online banking tools are nearly five times as likely to manage their household finances and about twice as likely to have the final say in major financial decisions, compared with women who don’t bank online, a new UCL-led study has found.

IStock – Credit:Nature

Using nationally representative data of heterosexual couples aged 20–64 from the United Kingdom Household Longitudinal Study, researchers show how online banking enhances its users’ financial influence within their relationship, making them more likely to manage the couple’s money and have the final say in major financial decisions.  

The adoption of online banking, through mobile apps and digital investment trackers, has brought personal finance management to the mainstream and, in turn, altered how money is managed within modern relationships. 

Published in the European Sociological Review, the study shows that in just over 60% of couples, both partners use online banking, while only one partner uses online banking in around 30% of couples. 

The researchers found online banking has an empowering effect, bolstering the financial influence of its users. Women are nearly five times as likely to manage household finances if they bank online, and a similarly sizable effect is observed among men if they use online banking. 

The ‘empowering effect’ can also be seen as a means of financial ‘gatekeeping’, especially in couples in which only one partner banks online, where the effect is more pronounced.  

The study reveals that online banking facilitates autonomy over personal finances. Women and men who bank online are about 50% more likely to manage at least part of their own money separately, compared with those who do not bank online. 

Nearly half (49%) of UK couples pool their income and manage it jointly, while partners in 17% of couples manage part or all of their own money independently.  

Major financial decisions, such as high-value purchases or investment choices, are made jointly by 83% of UK couples. For 11% of heterosexual couples, the male partner has the final say on such decisions. Women lead these decisions in just 6% of couples. The chance of male-led decision-making doubles when he uses online banking, and it increases even further when he is the sole online banking user within the couple. 

While historically men tended to control major financial decisions in the family, the empowerment of women has seen an increase in women taking part in such decisions over the last few decades.  

The study found that when a woman uses online banking, she and her partner are more likely to make major financial decisions jointly, as equals. 

Co-author Dr Yang Hu (UCL Social Research Institute) yesterday said: 

“Our findings show that access to and use of online banking tools benefit everyone. For men, online banking often increases their involvement in day-to-day money management and reinforces their control over big financial decisions. For many women, it can level the playing field and open the door to shared decision‑making, giving them a stronger voice in the household.”  

Co-author Dr Yue Qian (University of British Columbia) yesterday said: 

“In the UK and elsewhere, the way couples manage their finances has changed dramatically over the last 50 years. Despite many couples choosing to manage their finances together, male control over big financial decisions is still nearly twice as likely as female control. Yet digitalisation is bringing about sweeping changes to household finances.” 

Dr Yang Hu added: 

“Those who are left out of online banking risk losing their voice in household finances. As digital banking becomes the norm, digital exclusion can lead to a new kind of financial vulnerability and can become a new source of inequality in relationships.” 

Media contact   

Sophie Hunter   

T: +44 (0)7747 565 056

E: sophie.hunter@ucl.ac.uk     

Image 

• IStock – Credit:Nature

Notes 

• Read Online banking and household financial organization
• Dr Yang Hu’s academic profile 
• UCL Social Research Institute  
• UCL Institute of Education