The Global Economic Crisis: The Impact On European Consumer Attitudes Towards Financial Services

Published by: Datamonitor

Published: Aug. 4, 2009 - 943 Pages

Table of Contents

OVERVIEW

Catalyst

Summary

THE FUTURE DECODED

INTRODUCTION: Understanding how recessionary mindsets influence attitudes towards and actual consumption is vital

The recessionary mindset of European consumers has intensified with consumers' widespread belief that they are living in a recession

TREND: Lower consumer confidence is reflected by a generally negative outlook amongst European consumers

Perceptions about the economy, job security and household financial status in Europe have all worsened and there is limited optimism for the six months ahead

European consumers' downbeat forecasts appear to be negatively impacting perceptions of quality of life, with stress levels up and personal happiness down

Stress levels have risen during the financial downturn, and this should be reflected in the financial services offered

INSIGHT: Faced with high uncertainty and low optimism for the future, European consumers embrace the status quo

European consumers experience increased concerns over their financial products yet remain below the global average

ACTION POINT: Financial services providers must meet the anxiety of European consumers for the long term with products and advice geared to alleviate this concern, and target providing support with a personal touch

Europeans do not translate their more pessimistic general outlook into higher concerns around specifics

Increased concerns fail to elicit a significant response from European consumers

ACTION POINT: Financial services providers have a role to play in reassuring consumers and boosting confidence in their wider financial situation

TREND: Confidence concerning one's future personal financial situation influences consumers' financial services decisions

Confidence concerning future household financial security impacts short-term savings

Long-term savings plans are also impacted upon by household financial confidence

INSIGHT: There exists a not inconsiderable segment of consumers that have the means and yet are still reluctant to save, both now and in the long run

Financial services institutions must encourage these key consumer segments to ask themselves: Can I afford not to save?

Key consumer segment 1: apathetic consumers

Key consumer segment 2: struggling consumers

INSIGHT: European online banking market reveals untapped potential

Europeans check balances online but fail to make the move to some of the other banking activities

Heavy online use by price-driven consumers and those who are more optimistic about their household finances

ACTION POINT: Online banking interfaces must be improved to provide service and security to rival in-house arrangements

APPENDIX

Additional data

Methodology

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Percent likely or unlikely to reduce credit card debt given level of confidence in personal finances

Table 2: Percent likely or unlikely to remortgage given level of confidence in personal finances

Table 3: Average level of response to I trust my primary bank given registered/unregistered online

Table 4: Frequency of online banking use by price-driven consumers

Table 5: Frequency of online banking use by consumers who expect to be better off financially

List of Figures

Figure 1: Datamonitor's Recession and Recovery portal will allow industry players to continually identify emerging opportunities and track what is happening in the UK economy as it develops

Figure 2: More than half of European consumers strongly believe that their country is in a recession, which is indicative of a deeper recessionary mindset.

Figure 3: Both Europeans and the rest of the world are revealing heightened economic concerns, but Europeans appear particularly hard-hit.

Figure 4: Europeans reveal their financial situation has worsened more than the global average

Figure 5: Job security has worsened, with Europeans hit harder than the global average

Figure 6: The unemployment rate is expected to peak in 2010 for most European countries

Figure 7: Consumer expectations for the next 12 months reveal mixed results

Figure 8: Stress levels have increased in consumers' daily lives, with Europeans seeing fewer improvements

Figure 9: Levels of concern before downturn reveal Europeans show less concern across the board

Figure 10: Level of concerns have increased post-downturn, but Europeans remain less troubled than the global average

Figure 11: Some financial services providers have already made marketing promotions focused around rebuilding confidence.

Figure 12: European consumers are less likely to undertake all proposed activities over the next six months

Figure 13: Consumers likely to save are more likely to be optimistic about their personal finances

Figure 14: Consumers likely to invest in their pensions are more likely to be optimistic about their personal finances

Figure 15: Four distinct consumer segments have emerged within the savings market

Figure 16: Globally consumers regularly check their online bank balance, but Europeans do so with higher frequency

Figure 17: Consumer interest in other online banking activities reveals some weaknesses in the online banking sector

Figure 18: Consumers highlight branch and security issues as the two main reasons for not using online banking

Abstract

• Detailed analysis documenting European consumers' 'recessionary mindset' and how this influences perceptions about current and future prospects
• Insights highlight how the economic downturn has affected emotional wellbeing and financial security in Europe compared to the global average
• Detail discussion of what the downturn means for saving and investment products and what must be done to once again engage consumers
• In-depth analysis into Europe's growing online banking market's highlighting important opportunities for FS providers

• Gain a detailed understanding of changing consumer attitudes amid the global downturn in order to build appropriate recessionary strategies
• Assist consumer segmentation and targeting efforts by accessing data from Datamonitor's Global FS Consumer Insight survey

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