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Financial Services: The Path to Purchase - UK - June 2015

Financial Services: The Path to Purchase - UK - June 2015

This month ERB includes:

An analyst comment about the Asda and Intermarché rolling out click and collect lockers.
An overview of the the latest European retail sales data across the five major European economies.
A profile of DIY giant Kingfisher from our recently published DIY Retailing - Europe - May 2015.
Monthly headlines and retail news analysis across Europe.


OVERVIEW
Abbreviations
EXECUTIVE SUMMARY
Product arrangement
Figure 1: Products arranged (including new or switched products) in the last three years, April 2015
Figure 2: Reasons given for arranging a new current account, credit card, savings account and/or mortgage, April 2015
The research process
Figure 3: Information sources used to research financial products before purchase, April 2015
Figure 4: First information sources used to research financial products before purchase, April 2015
Preferred purchasing method
Figure 5: Method used to arrange financial products in the last three years, April 2015
Figure 6: Agent used to arrange financial products in the last three years, April 2015
Attitudes towards arranging financial products
Figure 7: Agreement with attitudes towards researching and arranging financial services products, April 2015
The internet is now key at all stages of arranging a product
Price can get people to switch, but other considerations make them stay
The changing role of brand image
THE CONSUMER
What you need to know
Consumers engage most regularly with insurance
Most new products are the result of opportunism, but active engagement is key
Online research is key for all products
The first point of call is heavily product-dependent
Consumers prefer to buy online, direct from their provider
Taking personal responsibility is a valued quality
Product buying activity
37% have arranged a new motor policy in the last three years
Figure 8: Products arranged (including new or switched products) in the last three years, April 2015
Millennials are the most likely to switch core products…
…while Boomers concentrate on getting the best insurance deals
Figure 9: Products arranged (including new or switched products) in the last three years, by age group, April 2015
35% have arranged no financial products in the last three years
Prompts to purchase
A fifth arranged a product because they keep up to date with products…
Figure 10: Reasons given for arranging a new current account, credit card, savings account and/or mortgage, April 2015
…but opportunity is key
Figure 11: Reasons given for arranging a new current account, credit card, savings account and/or mortgage, April 2015
Limited offers can push people into bringing forward switching plans…
…and the end of an introductory offer can act as a trigger to check the market
Changing personal circumstances can prove the worth of personal service
Brand image still matters
Product research
Most people research financial products online…
Figure 12: Information sources used to research financial products before purchase, April 2015
…but branches are still widely used
Figure 13: Use of bank/building society branch to research financial products, by product arranged, April 2015
Mortgage customers are the most likely to seek professional help
Figure 14: Use of professional personal advice/guidance* to research financial products, by product arranged, April 2015
Harness peer reviews to attract younger consumers
Figure 15: Consumers who spoke to friends and/or family when arranging their most recent current account, credit card or savings account,
by age, April 2015
Figure 16: Consumers who spoke to friends and/or family when arranging their most recent car or home insurance policy, by age, April 2015
25
First point of contact
Price comparison websites are the key first stop for research
Figure 17: First information sources used to research financial products before purchase, April 2015
Insurance is product led…
…while brands are more important for banking customers
Advisers are the most common first point of call for mortgage borrowers
Purchase methods
Offline points of sale are falling away
Figure 18: Method used to arrange financial products in the last three years, April 2015
Finance, on the go
In the main, consumers prefer to arrange products directly
Figure 19: Agent used to arrange financial products in the last three years, April 2015
The road to purchase
Current accounts
Figure 20: Current account purchase method, by initial research source, April 2015
Credit cards
Figure 21: Credit card purchase method, by initial research source, April 2015
Savings accounts
Figure 22: Savings account purchase method, by initial research source, April 2015
Car insurance
Figure 23: Car insurance purchase method, by initial research source, April 2015
Home insurance
Figure 24: Home insurance purchase method, by initial research source, April 2015
Attitudes towards product research and purchase
It is essential to check Ts and Cs, but can it be done?
Figure 25: Attitudes towards researching and arranging financial services products, April 2015
Keep it simple to avoid confusion
Could regulation overcome apathy?
Figure 26: Agreement with attitudes towards researching and arranging financial services products, by product buying activity, April 2015.34
Half prefer to do their own research than trust experts
The price of loyalty
Figure 27: Agreement with the statement “Companies save their best offers for new customers”, by product buying activity, April 2015
RESEARCH METHODOLOGY
UK Research Methodology
Sampling and weighting
Face to Face Surveys
Definitions
Brand & Social Media Research
Trade research
Desk research
Statistical Forecasting
The Mintel fan chart

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