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Published by: Business Insights
Published: Feb. 1, 1999 - 130 Pages
Table of Contents
Executive Summary
- The "era of the euro" in financial services
- Regulations, brand and distribution are the key obstacles
- Scenarios for the development of financial services
Chapter One: Introduction
- Introduction
- Structure
- Methodology
Chapter Two: Scenarios For Financial Services In The Era Of The Euro
- The EISD model
- Environment
- Regulation
- EU regulations have created the framework for a competitive single market
- Overall conditions and attitudes
- The euro-zone now has a single currency but not a single economy
- Taxation
- After the creation of the euro, taxation is the next major barrier to a true single market
- Substitute products
- Pensions are the most important aspect of substitution from state provision to the private sector
- Interface
- Distribution
- Multi-channel distribution is the hallmark of the future
- Technology
- Telephone technology has had the biggest impact in direct distribution
- Brand
- Plastic cards are the leading global retail brands in financial services
- Supply
- Supply is diversifying across financial services
- Demand
- The trend towards a consumer economy does not produce a single European consumer
- How will the EISD model change in the era of the euro?
- Environment
- The biggest regulatory hurdle of all: will Denmark, Greece, Sweden and the UK join the euro?
- Interface
- Supply
- Demand
- Scenarios for the development of financial services in the era of the euro
- What will it take to sell financial services in the era of the euro?
- Defining a customer base
- The logic of a pan-European all-finanz institutions implies multi-channel distribution
- Branding in financial services
- For every scenario, each element of the marketing mix must be related
- Scenario 1: the survival of national markets
- The advantages of "national" players are primarily defensive
- Existing customer base and knowledge provide advantages
- Scenario 2: the pan-European giants
- Are global companies integrated operations or a series of national firms?
- The limits of cross-selling
- The advantage of scale: asset management
- Scenario 3: national and international niche markets
- Niches can be pan-European too
- Sub-branding by larger competitors enables them to target niches
- Is there a future for retail banking?
- New entrants target deposits and consumer lending
- The revolving-credit mortgage
- Plastic cards are already run without retail banks
- Will EDS be the next bank? Payment systems can be outsourced too
- Non-life insurance: underwriting is its core competence
- Retail investments form a coherent whole
- Customer focus implies a portfolio of products to suit the individual
- Unit-linked insurance bridges the gap between insurance and stock-market investment
- The shift from retail deposits to pensions and mutual funds
- Outsourcing of asset management will enable smaller insurers to survive
- Conclusion
Chapter Three: Banking And The Euro
- Introduction
- Regulation and deregulation
- Credit markets and privatisation
- Direct banking is authorised in EU countries, though pan-EU regulations are not complete
- Consumer protection is strongest for mortgages
- Regulatory environments go beyond legislation
- Existing fee structures are under pressure
- Conclusion
- Mergers and acquisitions in banking
- Attitudes to foreign competitors
- Where do mega-mergers lead?
- Domestic mega-mergers do not prevent the need for international alliances
- Distribution in retail banking
- Will branches be needed in the future?
- Drawbacks to direct banking
- Conclusion: niches can be targeted better than mass retail customers
- How banks perceive their customers
- Consumer attitudes to euro-zone investment
- Product development after the euro
- Plastic card usage is rising fast - technology matters more than the euro
- As returns on deposit accounts wane, bancassurance waxes
- Personal lending
- Brand
Chapter Four: Insurance And The Euro
- Introduction
- What is needed for success in selling insurance products in the era of the euro?
- Regulation and deregulation
- Regulation and life insurance
- Non-life insurance regulations
- Mergers and acquisitions in EU insurance
- How concentrated are insurance markets?
- Distribution in insurance
- Direct distribution and intermediaries can both thrive in different segments
- How insurers perceive their customers
- Differences in customer spending and behaviour are substantial
- Product development
- Brand
- Conclusion: branding in teleinsurance
Chapter Five: Retail Investment In The Era Of The Euro
- Introduction
- What are the effects of the euro on investment management?
- Regulation
- Why might retail customers want pan-European investment?
- Customers
- Conclusion: premium and retail customers must be the target segments for many institutions
- Product development
- What euro funds have already been created?
- International competition will be strong in private banking and asset management
- High net worth banking is an international business
- US fund managers challenge European companies
- Has competition squeezed profitability?
- A barrier to the single market: internal fund management
- Conclusion: the double-brand solution for distribution and fund management
- Index
AbstractCompetition in European financial services in and outside the eurozone is now entering a new era, presenting providers with significant new challenges. This report provides financial services companies, vertical market suppliers and other industry observers with the first clear indication of the environment in which financial services products will be sold in the near future. Scenario-based forecasts of the future of the retail financial services sector in Europe are based upon formal analysis of factors influencing change in the era of the euro. A wealth of industry specific primary opinion is gathered and summarised in industry sector chapters. From Reuters Business Insight.
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