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Brand values in UK personal lending

Datamonitor
April 1, 2009
9 Pages - SKU: DFMN2217578

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Countries covered: United Kingdom

Introduction

The financial crisis in the UK has negatively affected many financial institution's reputations. However, despite the weakened state of the personal lending market, there still exists significant possibilities for banks to improve their brand message. Targeting consumers through Datamonitor's Megatrends framework will help banks improve their brand values through the most cost effective means.

Scope

Analyzes the most up-to-date advertising statistics determining how the industry is responding to the downturn.
Sizes the personal loan market by gross advances, balances outstanding and competitive environment.
Uses Datamonitor's Consumer Megatrends Framework to assess customer needs during this uncertain era.
Discusses ways to improve bank brands within the personal loan market.

Highlights

The top 10 personal loan advertisers have cut their total expenditure by 69% in 2008.

Banks need to focus more on the non-price specific aspects of products and services. During these testing times the onus is less on overall advertising expenditure and more on what a bank can do to improve the position of a borrower.

Customers in financial distress should rely heavily on help and assistance from their banks. This presents an opportunity for banks to rebuild their reputations by catering more for customers worried about their finances.

Reasons to Purchase

Benchmark personal loan advertising expenditure against other product lines against major lenders and brokers across the industry.
Relevant and topical analysis to how you can improve brand reputation during the global downturn.
Provides the reader with a comprehensive consumer framework identifying the key attitudes and behaviors of recessionary consumers.

DATAMONITOR VIEW: CATALYST; SUMMARY; ANALYSIS; The downturn has placed an emphasis on reducing advertising expenditure; The credit crunch has severely affected the personal loan market; Global brand strengths have fallen significantly in light of the worsening financial situation; A combination of changing market dynamics and lower liquidity levels have forced personal loan advertising expenditure downwards; In line with the weakened personal loan market, advertising has fallen across the board; The top 10 personal loan advertisers have cut their total expenditure by 69%; Lenders have been more affected in the secured market.; Only a relatively small number of lenders have exited the unsecured market; The secured market is characterized by only a handful of lenders; Innovative customer targeting will reap significant rewards despite the bleak outlook; To drive brand values at minimal costs banks need to appeal to consumers' recessionary mindsets; Following Datamonitor's Megatrends framework is vital for improving brand values; Targeting and promoting self-service products will appeal to the Financial Intelligence Complexity; Consumers demand greater control over their financial future; Effective advertising should focus on safety and functionality to lessen consumer worries; Personal loan campaigns should emphasize how credit can improve the short term position of a borrower; Services and products need to satisfy the Authenticity Megatrend; Despite these examples, few banks satisfy the Authenticity Megatrend; Adopting a more friendly advisory and assistance based approach to customers develops better customer relationships; Working with NGOs and charities will help improve reputation and trust; Marketing innovative loans for customers in difficulties will enhance a bank's reputation; A more personalized approach to product offerings is a win-win for banks
APPENDIX: Supplementary data; Definitions; Balances outstanding; CMGR; Gross advances; Secured personal loans; Unsecured personal loans; Methodology; Further reading; Ask the analyst; Datamonitor consulting; Disclaimer
List of Tables: Table 1: The top 10 global brand values, 2008; Table 2: The top 10 personal loan advertisers, 2007-08; Table 3: Personal loan gross advances and balances outstanding, January 2007-September 2008; Table 4: Total UK advertising expenditure by product line, 2004-08; Table 5: Total UK advertising expenditure in 2008, H1 2008-H2 2008
List of Figures: Figure 1: Unsecured personal loan advances have been falling while balances outstanding have grown, January 2007-September 2008; Figure 2: Total financial services advertising expenditure fell by 15.8% in 2008, 2004-08; Figure 3: Total advertising dropped by 22.4% throughout the second half of 2008; Figure 4: Recessionary consumers' behavior is affected by a number of basic drivers and inhibitors; Figure 5: Bank of Scotland's website provide a comprehensive source of information for borrowers, 2009; Figure 6: Online price comparison sites and banks are the most trusted financial institutions, 2008; Figure 7: First Direct's 'Enthuse' service explains products pure and simple, 2009; Figure 8: Virgin Money's homepage illustrates how the bank can help simplify financial services, 2009

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