Santander: Consumers, small-business owners optimistic for better finances in 2021

PROVIDENCE – While the pandemic has depleted savings accounts, consumers and small businesses in Providence and across the country are optimistic their financial situations will improve in 2021, according to Santander Bank’s Financial Resilience Survey.

Nationwide, just over one-third of the consumers and small-business owners surveyed say their savings have taken a hit because of the pandemic. In Providence, 46% answered the same. Providence respondents also fared worse than national averages in concern over personal finances (38% versus 32% nationally). The 51% who said they were personally struggling was the second worst among major cities in the Northeast, according to the survey.

Still, local residents and those across the nation were equally confident in their financial futures, with about two-thirds describing themselves as financially resilient. Confidence was higher among small-business owners, 74% of whom said they could withstand the financial losses of the pandemic, while 67% of consumers said the same.

Still, most, or 60%, had to get creative and adapt to find ways to get by such as increasing savings. delaying purchases and seeking out reliable financial advice. A majority – 61% of consumers and 80% of small-business owners – say they need social or financial help to survive another potential lockdown. That includes banks being flexible on loan repayments or taking other actions to ease customers’ financial struggles.

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The survey also highlighted lack of understanding and awareness of where to go for financial advice. Among those surveyed who said their personal finances were not in order, more than 80% said they wanted to prioritize better financial planning but did not know where or how to begin. Meanwhile, nearly one-third of those looking to start a small business but who ultimately decided not to say the reason was because they did not know who to consult for answers and advice.

The survey reflects results of 2,300 adults and 500 small-business owners surveyed nationwide last year from Nov. 20 to Dec. 2.

Nancy Lavin is a staff writer for PBN. Contact her at Lavin@PBN.com.