Low income groups and financial services

Introduction
Low income consumers account for 14 per cent, a small but stable share, of the total population in the US and Western Europe. This report looks at the attitudinal and behavioral habits of the 87 million low income consumers in the US and Europe, giving financial services providers valuable insights into an important market to target.

Scope
Data from an exclusive Datamonitor survey of over 3000 consumers in France, Germany, Italy, the Netherlands, Spain, Sweden, the UK and the US

In-depth analysis of data covering low income groups’ consumption attitudes and behaviours, broken down by region, age and various consumer profiles

Data and analysis from secondary research on low income populations, income and expenditure in the US and Europe

Report Highlights
Low income populations have been on the decline, but structural factors are slowing the shrink and there are significant (and exploitable) country variations.

Low income consumers react differently to poor customer service depending on the financial services product that they have purchased. 57 per cent of low income consumers would leave their existing insurance provider whereas only 35 per cent would decide to change banks.

Reasons to Purchase
Understand the size and scope of opportunities within the low income segment in both the US and Europe

Improve acquisition and retention rates by gaining a detailed understanding of the consumption attitudes and behaviours of the low income group

Design innovative products by learning of gaps in the market where existing strategies are not meeting the needs and wants of low income consumers

Scope
Focussed research into government and industry strategies highlighting existing approaches and future opportunities for financial services providers

Report Highlights
Low income consumers’ reliance shifts from recommendations from friends and family to advice from financial advisors when they are seeking information on more complex financial products. Reliance on recommendations from advisors increases by 20 per percent when consumers consider purchasing savings/investment policies instead of bank accounts.