Beyond Budget 2025: How Ireland's Private Sector Can Support Consumers in Economically Challenging Times

The recent unveiling of Ireland's Budget 2025 has sparked a national conversation about the ongoing cost-of-living crisis and the measures necessary to alleviate financial pressures on Irish families. As the government introduces a series of immediate relief efforts, there is a parallel narrative emerging – one that involves the private sector's role in bolstering economic resilience for Irish consumers, over 50% of whom are struggling to meet living expenses, according to our research. With new digital innovation programs, companies can offer solutions that not only complement government efforts but also pave the way for enduring financial empowerment across Ireland.

The Synergy of Public & Private Sector Goals

Budget 2025 serves as a blueprint for the government's commitment to supporting Irish families amid the cost-of-living crisis. It outlines a package of financial supports, including notable measures such as lump-sum payments to offset fuel costs, an increase in social welfare payments across the board and targeted supports aimed at easing the burden on families, like childcare-, education- and healthcare-related expenses. Pensioners, who often face financial constraints on fixed incomes, are set to benefit from higher allowances, while jobseekers will find additional financial resources as well as training opportunities at their disposal to navigate the job market. 

While these measures will certainly help Irish citizens in the short-term, it is the innovation and agility of businesses that can drive sustainable change. The private sector's digital tools and services have the potential to offer more than just immediate relief; they can empower consumers to take control of their financial well-being, leading to long-term resilience. By aligning with the government's aim to support citizens through tough economic times, businesses can leverage technology to create a lasting impact, ensuring that the measures introduced in Budget 2025 are the foundation for ongoing economic stability.

How Businesses Can Help Meet Consumers’ Financial Needs

Businesses across all industries have an opportunity to redefine the customer experience to provide consumers with what they need when they need it. Below, we outline specifically how banks, retailers and health insurers can create customer-centered experiences that support customers’ needs.

• Banking: A New Era of Personalized Financial Management

The banking sector has a profound opportunity to reshape the financial landscape for consumers. While the majority of account holders are content with their banking services, a deeper dive reveals that many are not getting the support they need, with a staggering 67% struggling to manage their spending effectively. The advent of digital banking has opened doors to personalized experiences that were previously unimaginable. From mobile apps to eBanking platforms, consumers are increasingly seeking digital avenues to manage their finances.

Banks can leverage consumer desire for more support by providing omnichannel engagement, offering guidance across various digital touchpoints. The integration of Personal Finance Management (PFM) solutions can empower consumers with expense tracking, budget creation tools and personalized financial insights. By embedding AI within these tools, banks can further deliver customized advice, helping consumers navigate the cost-of-living crisis with greater ease.

• Retail: Revolutionizing the Online Shopping Experience

In the retail sector, the pandemic solidified online shopping habits, with consumers visiting online clothing stores more than twice as often as brick-and-mortar outlets. Despite the financial strain, spending on clothing remains a constant — and customers find it difficult to return unwanted clothing — underscoring the need for a more intuitive online shopping experience. Retailers can address this by introducing virtual try-on technologies, allowing consumers to visualize garments on a digital replica of themselves, thereby reducing the likelihood of returns and enhancing customer satisfaction.

Furthermore, integrating in-store browsing with online purchasing capabilities can create a seamless shopping journey. By implementing digital solutions that bridge the gap between physical and online stores, retailers can foster brand trust and loyalty, which are crucial in retaining customers during times of economic uncertainty.

• Health Insurance: Streamlining Processes to Build Trust

The health insurance sector is another domain where consumer trust is paramount. While a significant proportion of consumers express satisfaction with their providers, there remains room for improvement, particularly in the claims process. Consumers often forgo submitting healthcare receipts, potentially missing out on substantial reimbursements. In fact, our research found that an estimated €482.94 is lost annually per customer due to unsubmitted receipts. Health insurers can address this by simplifying the claims process through AI, which can extract necessary information from uploaded receipts, reducing the burden on consumers.

Proactive engagement is key, with insurers focusing on customer education while also reminding them of the benefits they are entitled to and the processes involved in claiming them. By making it easier for consumers to claim what they are owed, insurers not only assist in immediate financial relief but also build a foundation of trust that can lead to long-term customer retention.

A Call to Action for Irish Businesses

The alignment of public initiatives with private sector innovation presents a compelling narrative for Ireland's path forward. While many factors contribute to the cost-of-living crisis, the combined efforts of government relief measures and private sector digital solutions can provide a strong steppingstone to help consumers achieve economic stability. This collaboration is essential for empowering consumers, ensuring their financial well-being and fostering a thriving economic environment for all.

The conversation around Budget 2025 brings to the fore the importance of a multifaceted approach to economic challenges. The private sector's role in this cannot be overstated. By leveraging technology, businesses can provide innovative solutions that not only support consumers in the short term but also contribute to their long-term financial well-being. It is through these efforts that the private sector can make a meaningful impact on Ireland's economic landscape, ensuring that the support provided by the government is not just a temporary fix but a steppingstone to lasting financial security.

To learn more about what Irish businesses can do to help mitigate the effects of the cost-of living crisis on customers, download our report.