Today’s economy is changing faster than ever, and it can be challenging for companies to track the constant shifts in consumer needs, concerns, and behaviors. Consumer wealth in the United States totals over $7.1 trillion, but with the most uneven distribution in recent history.
How can firms stay ahead of new trends in spending and saving? A new eBook from our partners at Equifax posits that the “average customer” no longer exists, and that in a K-shaped economy, firms are better served by studying the distribution of wealth rather than the mean.
Equifax data reveals that the COVID-19 pandemic had a wide range of economic effects on American households, including a significant reduction in the middle class. As a result, the needs and pain points of borrowers are more diverse than ever, creating a significant challenge for financial institutions hoping to grow. Now, the United States economy is better understood through the larger segments in the top (“Thrivers”) and bottom (“Strivers”).
It can be difficult to see this change, as more traditional markers of economic progress like the GDP can disguise the widening gap between these two groups. By studying the diverse needs, concerns, and aspirations of Thrivers and Strivers, companies can position themselves as a knowledgeable partner while also reducing their own risk.
In Why the Average Consumer No Longer Exists: The State of the K-Shaped Economy, the experts at Equifax break down this new economic landscape:
- Learn how credit, debt, income, capacity, and assets interact
- Discover an overview of both Thrivers and Strivers
- Leverage trends to mitigate risk and increase opportunities for your business
- Explore how previous risk indicators (like age as a proxy for financial capacity) aren’t always reliable in today’s market
Learn how Equifax can help you and your customers thrive in a challenging economy.
