London residents spend an extra £2,343 as they increase time online

People in London have, on average, spent an additional £2,343 each on online shopping in the past year, the latest Lloyds Bank Consumer Digital Index has revealed.

A quarter (25%) of people in the capital said the Covid-19 pandemic had made them more likely to make purchases without thinking about future implications, with residents making, on average, 25 more online transactions in the past twelve months.

The extra online spending comes as more people turn to the internet for goods and services in lieu of visiting the high street. More than two-thirds (68%) of people across London report to having increased their internet usage, with nine in ten (91%) anticipating that their new habits will continue in the long-term.

But despite the uptake in time spent online, 3% of people in London are still offline, having not used a desktop, laptop, mobile or tablet in the last three months.

Ed Thurman, regional ambassador for London at Lloyds Banking Group, said: “For many it’s been easy to adapt to the closure of the high street and lockdown restrictions, they have simply gone online for shopping, banking and to stay in touch with friends. Fortunately, this has been an easy transition for many, with a staggering 86% of Londoners saying that being online has helped them to connect better with friends and family, and more than two-thirds admitting they wouldn’t have coped without it.

“It’s encouraging to see that many Londoners have used the internet to find ways to be more financially savvy, stay connected with others and manage their mental health – real benefits that being online can unlock.

“However, for others, a lack of digital skills has made lockdown really challenging, and we still have some people in London who are not using the internet on a regular basis. We cannot risk leaving people in our community behind, so it’s more important than ever that we provide help to those who need it to access online services – and that they know how to stay safe while doing so.

“We’re offering free digital skills training through our Academy and have 20,000 regional digital champions on hand to help people access online services. Through reaching those most affected and by working together, we can help everyone to feel more comfortable using the internet and unlock the financial and social benefits it can bring.”

Despite the rise in online shopping, the pandemic has made many more people in the capital careful with their finances overall. Two-thirds (66%) say the experience of the pandemic has changed their priorities and they are now more focused on being debt free.

In line with the growth of online banking*, nine in ten (91%) now manage their money online and 50% feel more in control of their day-to-day finances now than they were a year ago.

The research also found that half (51%) of London residents think the steps they have taken to manage their finances in the last year mean they can now enjoy their lives more. However, many are still feeling the pressure on their household finances, with almost two in five (39%) saying they feel stressed or overwhelmed by their financial situation.

Ed continued: “It’s clear that the pandemic has impacted us all in different ways. For some, the reduced daily outgoings have meant they have been able to save more but others have had a lot of pressure put on their finances.

“We’re here to help our customers in any way we can, whether that be with their saving goals or with financial advice for those who are struggling. We’re already helping the vast majority of our customers that get into financial difficulty back to financial health, and we have over 6,500 colleagues trained to support customers in building their financial resilience as part of our commitment to helping Britain recover. In addition, our Academy is actively helping people to become more financially resilient by giving them the skills to be more in control of their money.”