Targeting the Finance Friendly - Ireland

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2006 - 101 Pages

Table of Contents

INTRODUCTION AND ABBREVIATIONS

Definitions

Geographical, national and regional definitions

Conversion factors

BMRB Target Group Index sample sizes

Lifestage groups

ABBREVIATIONS

EXECUTIVE SUMMARY

Shifting population impacting financial markets

Increased consumer lending

New technology encourages increased financial activity

Consumer confidence in financial institutions

Mortgage market witnesses considerable growth

Advertising focuses on customer care

Consumer segmentation

NI consumer segments

Who is finance-friendly?

New age consumers accept debt

RoI consumer segments

Telephone and Internet banking more popular in RoI

Prudent Consumers star performers in pensions, mortgages and insurance markets

Future defined through technology adoption

MARKET DRIVERS

POPULATION

Figure 1: Breakdown of population, by age, NI, 2002-20

Figure 2: Breakdown of population, by age, RoI, 2000-20

Young adults

Young couples

Figure 3: Average age at marriage, by gender, NI and RoI, 2000-05

Young families

Mature families

Pensioners

GOVERNMENT FINANCIAL INCENTIVES

SSIA

ISA

Pension reforms

AVERAGE HOUSEHOLD SIZE

Figure 4: Average household size, NI and RoI, 1997-2005

INTEREST RATES

Figure 5: Interest rates, NI and RoI, 2000-05

CONSUMER CONFIDENCE IN FINANCIAL INSTITUTIONS

CONSUMER CREDIT - REGULATION AND AWARENESS

TECHNOLOGICAL DEVELOPMENTS

SOCIO-ECONOMIC CLASSIFICATION

Figure 6: Socio-economic classification, NI, 2001-05

Figure 7: Socio-economic classification, RoI, 2001-05

MARKET WITNESSING INCREASED FINANCIAL ACCESSIBILITY

IN-HOUSE FINANCE

ADAPTING TO CONSUMER NEEDS

Accessibility

Security

Financial performance

Transparency

The personal touch

MARKET SEGMENTS: FINANCIAL PRODUCTS

STOCKMARKET INVESTMENT

Figure 8: Stockmarket performance, FTSE, Dow Jones and Nikkei, 1995-2005

Figure 9: Proportion of population with investments in stocks and shares, NI and RoI, 2000-05

DEBIT CARDS

Figure 10: Debit card ownership and usage, NI and RoI, 2000-05

CREDIT CARDS

Figure 11: Credit card ownership and usage, NI and RoI, 2000-05

MORTGAGES

Figure 12: Value of outstanding mortgages, NI and RoI, 2000-05

SAVING ACCOUNTS

Figure 13: Value of savings market, NI and RoI, 2000-05

Increased prosperity benefiting savings market

Figure 14: Segmentation of the savings account market, by revenue invested, NI, 2000-05

Figure 15: Segmentation of the savings market, by revenue generated, NI, 2000-05

Increased long-term saving in RoI

Figure 16: Segmentation of the savings account market, by revenue invested, RoI, 2000-05

Figure 17: Segmentation of the savings market, by revenue generated, RoI, 2000-05

SUPPLY STRUCTURE

Banks

Abbey

AIB GROUP (ALLIED IRISH BANK)

Alliance & Leicester

Bank of Ireland

HBOS (HALIFAX BANK OF SCOTLAND)

IIB

Irish Life & Permanent plc

Irish Life

Permanent TSB

National Irish Bank

Northern Bank

Ulster Bank

FIRST ACTIVE (ULSTER BANK)

BUILDING SOCIETIES

Irish Nationwide

Nationwide

Northern Rock

OTHER FINANCIAL INSTITUTIONS

Post Office/An Post

BCP Asset Management

Quinn-Life

Credit Unions

ONLINE OPERATORS

Cahoot.com

Egg.com

Rabodirect.ie

NON-TRADITIONAL BANKING

Supermarket banking

Figure 18: Outline of financial services provided by Sainsbury's, Asda and Tesco, 2006

Debt consolidation

ADVERTISING AND SPONSORSHIP

Consumer data highlight the importance of sponsorship

Figure 19: Consumers attitudes towards advertising and sponsorship, NI, 2001-05

Figure 20: Consumers attitudes towards advertising and sponsorship, RoI, 2001-05

Building brands or selling products?

CONSUMER SEGMENTATION

Northern Ireland

Figure 21: Population size of cluster groups, NI, 2005

Figure 22: Cluster groups, by gender, age, socio-economic group, presence of children, working status and lifestage, NI, 2005

TELEPHONE AND INTERNET BANKING PREVALENT AMONG PROSPEROUS

Figure 23: Internet and telephone banking availability and usage (% difference from average), by cluster groups, NI, 2005

Financial Traditionalists sceptical of change

CREDIT CARD USAGE

Figure 24: Plastic card usage and payment options (% difference from average), by cluster groups, NI, 2005

BANK ACCOUNT OWNERSHIP

Figure 25: Bank account ownership, type and usage of banks and building societies (% difference from average), by cluster groups, NI, 2005

Low levels of loyalty among Financially Footloose consumers

Financial Traditionalists prepared to switch accounts

CREDIT FACILITIES

Figure 26: Credit usage (% difference from average), by cluster groups, NI, 2005

PENSION OWNERSHIP

Figure 27: Pension ownership (% difference from average), by cluster groups, NI, 2005

Financial Traditionalists prepared for retirement

MORTGAGE OWNERSHIP

Figure 28: Mortgage ownership (% difference from average), by cluster groups, NI, 2005

Financially Footloose offset mortgage ownership in favour of improved lifestyle

INSURANCE POLICY OWNERSHIP

Figure 29: Insurance policy ownership (% difference from average), by cluster groups, NI, 2005

Prudent Consumers most inclined to own insurance

ATTITUDES TOWARDS FINANCIAL SCENARIOS

Figure 30: Attitudes (% difference from average), by cluster groups, NI, 2005

FINANCIALLY FOOTLOOSE CONSUMERS PREPARED TO ACCEPT DEBT

PRUDENT CONSUMERS PLACE STOCK IN ETHICS

EXPERT ADVICE INFLUENCES CONSTRAINED CONSUMERS

FINANCIAL TRADITIONALISTS PLACE FAITH IN PROFESSIONALS

SERIOUS SPENDERS PREFER PLASTIC

REPUBLIC OF IRELAND

Figure 31: Population size of cluster groups, RoI, 2005

Cluster analysis

Figure 32: Cluster groups, by gender, age, socio-economic group, presence of children, working status and lifestage, RoI, 2005

INTERNET/TELEPHONE BANKING

Figure 33: Internet and telephone banking availability and usage (% difference from average), by cluster groups, RoI, 2005

Telephone banking important to Prudent Consumers

Telephone banking adopted by Financial Traditionalists

CREDIT CARD USAGE

Figure 34: Credit card usage and payment options (% difference from average), by cluster groups, RoI, 2005

Credit cards common among Prudent Consumers

BANK ACCOUNT OWNERSHIP

Figure 35: Bank account ownership (% difference from average), by cluster groups, RoI, 2005

CREDIT FACILITIES

Figure 36: Credit usage (% difference from average), by cluster groups, RoI, 2005

Financial Traditionalists choose not to live beyond their means

Serious Spenders are best credit customers

PENSION OWNERSHIP

Figure 37: Pension ownership (% difference from average), by cluster groups, RoI, 2005

Serious Spenders contradict age factor

MORTGAGE OWNERSHIP

Figure 38: Mortgage ownership (% difference from average), by cluster groups, RoI, 2005

Mortgage ownership high among Serious Spenders

INSURANCE OWNERSHIP

Figure 39: Insurance ownership (% difference from average), by cluster groups, RoI, 2005

Insurance less important among Constrained Consumers

ATTITUDES TOWARDS FINANCIAL SCENARIOS

Figure 40: Attitudes (% difference from average), by cluster groups, RoI, 2005

Financially Footloose lack financial confidence

Prudent Consumers seeking convenience

Constrained Consumers enjoy risk taking

Financial Traditionalists shun debt

Serious Spenders seek professional advice

SUMMARY: WHO ARE THE FINANCE-FRIENDLY?

Figure 41: Outline of cluster group usage of financial products, NI, 2006

Figure 42: Outline of cluster group usage of financial products, RoI, 2006

THE FUTURE

CREDIT BOOM REACHING SATURATION

TECHNOLOGY PLAYS EVEN GREATER PART IN FINANCE INDUSTRY

PENSION MARKET CONTINUES TO GROW

LEGISLATIVE CONTROL TO INCREASE

APPENDIX: RESEARCH METHODOLOGY

Abstract

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