Net Metrics: Consumer Usage of On-Line Aggregators, Brokers and Other Intermediaries in UK Banking

Published by: Finaccord Ltd.

Published: Mar. 1, 2008 - 160 Pages

Table of Contents

0.0 EXECUTIVE SUMMARY

Banks and building societies offering current accounts generate the highest volumes of web traffic .

Social networking and video sharing provider sites are very widely used by younger consumers

Utilisation of the Internet as a distribution option for banking products may have reached a plateau .

Longevity of Internet usage is an important factor driving on-line acquisition of banking products

Consumers focus on a more limited number of sites to research and take out banking products

Most consumers understand the difference between on-line aggregators and on-line brokers

Usage of on-line aggregators and brokers of banking products peaks in the 25-44 age bracket

Users of on-line aggregators and brokers are motivated primarily by finding the best interest rate ....

Only a minority of consumers state that they are loyal to their main on-line aggregator or broker

A significant proportion of users of on-line aggregators and brokers question their accuracy…

… and over 10% express dissatisfaction with a range of aspects of the service that they receive

Over two thirds of respondents claim to be either very aware or quite aware of uSwitch.com

Only a minority of aggregators and brokers are definitely trusted by more than 5% of consumers ....

moneysupermarket.com achieves the highest ratings in terms of actual usage to purchase

On-line aggregation and broking of banking products may be subject to significant consolidation

1.0 INTRODUCTION

Research rationale

The updated Net Metrics research incorporates a variety of new analyses of consumer behaviour ..

Research sample

Web-based aggregators and brokers of banking products

On-line aggregators and brokers of banking products can use a variety of operating models…

… although some of the most successful protagonists possess differentiated approaches…

… and provision of white-labelled searching facilities between competitors is also commonplace...

Who owns whom in on-line aggregation and broking of banking products?

Strengths and weaknesses

The Internet research methodology is characterised by several advantages and drawbacks

Finaccord

Other UK consumer research publications

UK affinity and partnership marketing publications

IPT / Tpoll

Errors, omissions and limit of liability

2.0 MARKET ANALYSIS

Introduction

Consumer propensity to visit different types of web site

Frequency of visits is a key metric in the emerging environment for on-line financial services…

… with banking institutions offering current accounts being well-positioned in this respect

… and both social networking providers and video sharing providers also scoring highly

Insurance companies and some traditional affinity partners generate relatively little web traffic

Over 80% of individuals aged between 16 and 24 visit the sites of social networking providers

The gap in usage by age group for the web sites of video sharing providers is slightly less acute ...

Consumer propensity to purchase via the Internet

Consumers are most likely to have made on-line acquisitions of books or music…

… with well 40% of respondents having acquired banking products via the Internet at least once...

On-line sales of computers and associated peripherals appear to be subject to a decline…

… and a slowdown may also be occurring for certain categories of retail banking product

Propensity to research and take out banking products over the Internet

Over a half of consumers use the Internet to research and / or take out banking products

There is a clear link between longevity of Internet use and acquisition of bank. products on-line

Number of details solicited prior taking out on-line banking products

On-line customers are most likely to solicit details for banking products on three occasions

Likelihood to research or take out banking products by type of web site

Consumer propensity to research or take out banking products varies greatly by type of web site ..

Banking entities offering current accounts should make the most of high volumes of web traffic

Awareness and influence of the on-line insurance banking concept

Most consumers are aware of the difference between on-line aggregation and on-line broking…...

… although a surprisingly high proportion assert that they are not influenced by this awareness ....

Consumer usage of aggregators or brokers of banking products

On-line banking aggregators and brokers achieve highest utilisation in the 25-44 age group

Characteristics of effective insurance aggregator and broker web sites

Over 75% of respondents consider eight characteristics to be either very or quite important

Personalisation, exclusive products and user reviews are the least valued characteristics

Banking aggregator or broker web sites used most frequently

Two competitors are subject to the most frequent usage by over a half of respondents…

… with Confused.com likely to become an increasingly serious challenger in this space…

Loyalty towards insurance aggregators and brokers used most frequently

… although the research is indicative of low rates of loyalty towards even the leading players

A key challenge for aggregators and brokers will be to maximise the loyalty of their customers

Accuracy of banking aggregators and brokers used most frequently

Over one in ten consumers have concerns over the accuracy of product information provided…...

… although moneysupermarket.com scores accuracy ratings in excess of the market average

Satisfaction with banking aggregators used most frequently

Finaccord’s research facilitates the measurement of consumer satisfaction levels…

… and indicates that the majority are satisfied by the service offered by banking aggregators

3.0 COMPETITOR ANALYSIS

Introduction

Consumer awareness of aggregation and broking web sites

uSwitch.com achieves the highest rating for recognition among on-line aggregators and brokers...

17 competitors in this field are recognised to some extent by over 25% of survey respondents…...

… although almost a half of the 70 web brands are not recognised by over 85% of consumers

Consumer trust of aggregation and broking web sites

In spite of its recent difficulties, simplyswitch is ranked highly in terms of consumer trust…

… and only 11 of its competitors are definitely trusted by more than 5% of respondents

Consumer usage of aggregation and broking web sites

moneysupermarket.com has achieved a surge in actual utilisation during the last 12 months

20 aggregators or brokers of banking products have been used by at least 1% of consumers

There continues to be a reasonable if not perfect correlation between awareness and trust

Five banking aggregators appear to be out-performing their rivals in the on-line market…

… helped by the degree to which they are trusted rather than merely known by consumers

moneysupermarket.com and MoneySavingExpert.com appear to have grown most rapidly

Conditions for market participants outside of the top ten seem destined to become tougher…

… as the evidence of the research is that smaller players are being squeezed out of the picture....

4.0 AGGREGATOR AND BROKER PROFILES

Introduction

4.1 24 Hour loan (www.24hour-loan.co.uk)

4.2 accepted.co.uk (www.accepted.co.uk)

4.3 AdviceOnline (www.adviceonline.co.uk)

4.4 AWD Moneyextra (www.moneyextra.com)

4.5 BeatThatQuote (www.beatthatquote.com)

4.6 Bullhorn.co.uk (www.bullhorn.co.uk)

4.7 buy.co.uk (www.buy.co.uk)

4.8 Charcol (www.charcol.co.uk)

4.9 Click 4 A Loan (www.click4aloan.co.uk)

4.10 Compare & Save (www.compare-and-save.co.uk)

4.11 Compare Loan UK (www.compareloan.co.uk)

4.12 Creditcards.co.uk (www.creditcards.co.uk)

4.13 Easy Quote (www.easy-quote.co.uk)

4.14 Elephant Loans (www.elephantloans.co.uk)

4.15 e-loan.co.uk (www.e-loan.co.uk)

4.16 E-loanshop.com (www.e-loanshop.com)

4.17 Endsleigh Financial (www.endsleigh-financial.co.uk)

4.18 Fair Investment Company (www.fairinvestment.co.uk)

4.19 FinanceDaily.co.uk (www.financedaily.co.uk)

4.20 Find.co.uk (www.find.co.uk)

4.21 First Line Loans (www.firstlineloans.co.uk)

4.22 Fool.co.uk (www.fool.co.uk)

4.23 Freedom Finance (www.freedomfinance.co.uk)

4.24 Goodinvestor.com (www.goodinvestor.com)

4.25 Guardian Credit (www.guardiancredit.co.uk)

4.26 Help My Money (www.helpmymoney.co.uk)

4.27 Home Loans Direct (www.homeloansdirect.net)

4.28 Interactive Investor (www.iii.co.uk)

4.29 Kelkoo (www.kelkoo.co.uk)

4.30 Know Your Money (www.knowyourmoney.co.uk)

4.31 Loan Arrangers UK (www.loan-arrangers.co.uk)

4.32 loan.co.uk (www.loan.co.uk)

4.33 loangenie (www.loangenie.co.uk)

4.34 Loans UK (www.loansuk.co.uk)

4.35 Loans.co.uk (www.loans.co.uk)

4.36 Loantime.co.uk (www.loantime.co.uk)

4.37 MoneyExpert (www.moneyexpert.com)

4.38 Moneyfacts (www.moneyfacts.co.uk)

4.39 moneygem.com (www.moneygem.com)

4.40 Moneymatchmaker.com (www.moneymatchmaker.com)

4.41 MoneyMonkey.co.uk (www.moneymonkey.co.uk)

4.42 Moneynet (www.moneynet.co.uk)

4.43 Moneyquest (www.moneyquest.co.uk)

4.44 MoneySavingExpert (www.moneysavingexpert.com)

4.45 moneysupermarket.com (www.moneysupermarket.com)

4.46 Moneyway (www.moneyway.co.uk)

4.47 Moneywise (www.moneywise.co.uk)

4.48 Mortgages.co.uk (www.mortgages.co.uk)

4.49 NationalPrice.com (www.nationalprice.com)

4.50 NationsFinance.co.uk (www.nationsfinance.co.uk)

4.51 Norton Finance (www.nortonfinance.co.uk)

4.52 Ocean Finance (www.oceanfinance.co.uk)

4.53 OnlineLoans.co.uk (www.onlineloans.co.uk)

4.54 Only Finance (www.onlyfinance.com)

4.55 Pacific Home Loans (www.pacifichomeloans.co.uk)

4.56 Pay day UK (www.paydayuk.co.uk)

4.57 pinkfish loans (www.pinkfishloans.co.uk)

4.58 Precision Loans (www.precisionloans.co.uk)

4.59 PriceRunner (www.pricerunner.co.uk)

4.60 Shakespeare Finance (www.shakespearefinance.co.uk)

4.61 simplyswitch (www.simplyswitch.com)

4.62 Smarter Money (www.smartermoney.com)

4.63 The Thrifty Scot (www.thriftyscot.co.uk)

4.64 theidol.com (www.theidol.com)

4.65 thisismoney.co.uk (www.thisismoney.co.uk)

4.66 Unravelit (www.unravelit.com)

4.67 uSwitch (www.uswitch.com)

4.68 Wider Choice (www.widerchoice.co.uk)

4.69 Your Money (www.yourmoney.com)

4.70 Zopa (www.zopa.com)

GRAPHICS / TABLES

Sample breakdown by age group, household income band and geographical location - entire survey

Sample breakdown by longevity of Internet usage - entire survey

Aggregators and brokers of banking products covered for the first time in the 2008 research

Who owns whom in web-based aggregation and broking of banking products in the UK?

Who owns whom in web-based aggregation and broking of banking products in the UK? (continued)

Consumer propensity to visit different types of web site, 2008

Consumer propensity to visit different types of web site, 2008 (data)

Consumer propensity to visit the web sites of social networking providers, 2008: detailed segmentation (data)

Consumer propensity to visit the web sites of video sharing providers, 2008: detailed segmentation (data)

Consumer propensity to purchase assorted goods and services via the Internet, 2008

Comparison of consumer propensity to purchase assorted goods and services via the Internet, 2006-8 (data)

% of custs. acquiring different bank. prods. through the Internet - 2007, 2005 and all previous years comp. (data)

Consumer propensity to research and take out banking products over the Internet, 2008

Consumer propensity to research and take out bank. products over the Internet, 2008: detailed segment. (data)

Number of quotes solicited by consumers prior to taking out bank. products over the Internet, 2006-8 compared

Number of quotes solicited by cons. prior to taking out bank. products over the Internet, 2006-8 compared (data)

Consumer likelihood to research or take out banking products from different types of web site, 2008

Consumer likelihood to research or take out banking products from different types of web site, 2008 (data)

Comparison of consumer propensity to visit and cons. likelihood to search for or take out bank. products, 2008

Awareness of the difference between on-line banking aggs. and on-line brokers of banking products, 2008

Consumer usage of web sites of aggregators or brokers of banking products, 2008 (data)

Importance of agg. and broker web site characteristics in persuading custs. to take out bank. products, 2008

Imp. of agg. and broker web site characteristics in persuading custs. to take out bank. products, 2008 (data)

Banking agg. or broker web sites used most frequently by cons. to research or take out bank. products, 2008

Degree of loyalty engendered by banking aggregators and brokers used most frequently, 2008

Degree of loyalty engendered by banking aggregators and brokers used most frequently, 2008 (data)

Perceived accuracy of banking aggregators and brokers used most frequently, 2008

Perceived accuracy of banking aggregators and brokers used most frequently, 2008 (data)

Cons. satisfaction with agg. web site used most freq. when searching for and / or taking out bank. prods., 2008

Cons. satisfaction with agg. used most freq. when searching for and / or taking out bank. prods., 2008 (data)

Ranking of web sites of aggregators and brokers of banking products by overall consumer awareness, 2008

Ranking of web sites of aggs. and brokers of bank. products by overall consumer awareness, 2008 (cont.)

Ranking of web sites of aggregators and brokers of banking products by consumer trust, 2008

Ranking of web sites of aggregators and brokers of banking products by consumer trust, 2008 (continued)

Ranking of web sites of aggregators and brokers of banking products by consumer usage to purchase, 2008

Ranking of web sites of aggs. and brokers of bank. products by consumer usage to purchase, 2008 (cont.)

Correlation between cons. awareness and cons. trust of web sites of aggs. and brokers of bank. products

Correlation between awareness and usage to take out bank. products of aggs. and brokers of bank. products

Correl. between trust and usage to take out bank. prods. of web sites of aggs. and brokers of bank. prods.

Comparison of recent and historic usage to take out bank. products of aggs. and brokers of bank. products (1)

Comparison of recent and historic usage to take out bank. products of aggs. and brokers of bank. products (2)

Consumer awareness, trust and usage to take out banking products of the www.24hour-loan.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.accepted.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.adviceonline.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.moneyextra.com web site

Consumer awareness, trust and usage to take out banking products of the www.beatthatquote.com web site

Consumer awareness, trust and usage to take out banking products of the www.bullhorn.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.buy.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.charcol.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.click4aloan.co.uk web site

Cons. awareness, trust and usage to take out bank. products of the www.compare-and-save.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.compareloan.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.creditcards.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.easy-quote.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.elephantloans.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.e-loan.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.e-loanshop.com web site

Cons. awareness, trust and usage to take out bank. products of the www.endsleigh-financial.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.fairinvestment.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.financedaily.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.find.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.firstlineloans.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.fool.co.uk web site

Consumer awareness, trust and usage to take out bank. products of the www.freedomfinance.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.goodinvestor.com web site

Consumer awareness, trust and usage to take out bank. products of the www.guardiancredit.co.uk web site

Consumer awareness, trust and usage to take out bank. products of the www.helpmymoney.co.uk web site

Consumer awareness, trust and usage to take out bank. products of the www.homeloansdirect.net web site

Consumer awareness, trust and usage to take out banking products of the www.iii.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.kelkoo.co.uk web site

Cons. awareness, trust and usage to take out bank. products of the www.knowyourmoney.co.uk web site

Consumer awareness, trust and usage to take out bank. products of the www.loan-arrangers.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.loan.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.loangenie.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.loansuk.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.loans.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.loantime.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.moneyexpert.com web site

Consumer awareness, trust and usage to take out banking products of the www.moneyfacts.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.moneygem.com web site

Cons. awareness, trust and usage to take out bank. products of the www.moneymatchmaker.com web site

Consumer awareness, trust and usage to take out bank. products of the www.moneymonkey.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.moneynet.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.moneyquest.co.uk web site

Cons. awareness, trust and usage to take out bank. products of the www.moneysavingexpert.com web site

Cons. awareness, trust and usage to take out bank. products of the www.moneysupermarket.com web site

Consumer awareness, trust and usage to take out banking products of the www.moneyway.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.moneywise.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.mortgages.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.nationalprice.com web site

Consumer awareness, trust and usage to take out bank. products of the www.nationsfinance.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.nortonfinance.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.oceanfinance.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.onlineloans.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.onlyfinance.com web site

Cons. awareness, trust and usage to take out bank. products of the www.pacifichomeloans.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.paydayuk.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.pinkfishloans.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.precisionloans.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.pricerunner.co.uk web site

Cons. awareness, trust and usage to take out bank. products of the www.shakespearefinance.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.simplyswitch.com web site

Consumer awareness, trust and usage to take out banking products of the www.smartermoney.com web site

Consumer awareness, trust and usage to take out banking products of the www.thriftyscot.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.theidol.com web site

Consumer awareness, trust and usage to take out banking products of the www.thisismoney.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.unravelit.com web site

Consumer awareness, trust and usage to take out banking products of the www.uswitch.com web site

Consumer awareness, trust and usage to take out banking products of the www.widerchoice.co.uk web site

Consumer awareness, trust and usage to take out banking products of the www.yourmoney.com web site

Consumer awareness, trust and usage to take out banking products of the www.zopa.com web site

Abstract

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