Table of Contents
Issues in the Market
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- Key themes in the report
- Report definition
- Abbreviations
Insights and Opportunities
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- Support when necessary
- Children of the banking revolution
- Power to the people
Market in Brief
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- The rise of the retailers
- NTPs have their limitations
- ‘Millionaires’ and ‘earth warriors’
- RoI reluctant to step out of comfort zone
Fast Forward Trends
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- Trend 1: Rebuilding Trust
- What's it about?
- What we’ve seen
- Specifics
- What next?
- Trend 2: Brand Experience
- What's it about?
- What we've seen
- Specifics
- What next?
Driving Growth in the NTP Market
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- Key points
- Why have NTPs entered the financial services market?
- Addressing the issue of time-poor consumers
- The ‘one-stop shop’ for consumers...
- ...with an online presence also
- NTPs – the original opportunists
- Customer databases essential for providing cross-selling opportunities
- Traditional FSPs come in handy too
- In difficulty lies opportunity
- ‘Irresponsible lending’
- Bonus scandals
- A lack of transparency on overdraft charges
- Problems with switching bank accounts
- Security threats at banks
- High credit card interest rates
- Implications for NTPs
- Transferable branding essential to NTPs
Broader Market Environment
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- Key points
- NTPs to benefit from gloomy economic outlook
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- Figure 1: Economic outlook for NI and RoI, 2008-10
- Housing and construction
- Unemployment
- Consumer spending
- Implications for the NTP market
- Technology developments vital for growth of NTPs
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- Figure 2: Percentage of respondents who have accessed the internet in the last 12 months, NI and RoI, 2003-08
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- Figure 3: Percentage of respondents with a broadband internet connection at home, NI and RoI, 2004-08
- Banking on the go
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- Figure 4: Number of respondents who access the internet through a mobile phone, NI and RoI, 2003-08
- Implications for NTPs
Barriers to Market Growth
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- Key points
- Could NTPs’ simplicity be their downfall?
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- Figure 5: Barriers to growth in the non-traditional financial services provider market, Ireland, 2009
- Limited range of products and lack of financial advice
- Security threats preventing cautious consumers from banking online
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- Figure 6: Number of reported phishing incidents targeted against UK banks and building societies Q1 2006-Q1 2008
- Increased regulation restricting market growth
Case Studies in the NTP Market
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- Key points
- Smaller Irish firms competing well with UK rivals
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- Figure 7: NTPs, by number of customers and operating profit, 2008/09
- Case study – M&S Money
- Case study – Postbank
- Case study – Post Office Financial Services
- Case study – Quinn Group
- Case study – Tesco Personal Finance
- Case study – Tesco Personal Finance Ireland
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Discounts and promotions the mainstays of NTP marketing strategies
- Savings and investments
- Credit cards and loans
- Insurance
- Competitions and rewards
- NTPs go green
- Extending the convenience factor
- Travel money
- Handy cover for businesses
- Timely off for debt-conscious consumers
- Over the counter life cover
- Established NTPs branch out
- New market entrants
- Future innovation in the market
Companies and Products
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- Key points
- Motoring organisations
- AA Financial Services (UK including NI)
- AA Insurance (AA Ireland Limited)
- Kwik-Fit Financial Services (UK including NI)
- RAC Direct Insurance (UK including NI)
- Retailers
- Boots UK Limited (UK including NI)
- Home Retail Group Financial Services (UK and Ireland)
- Supermarkets
- Asda Financial Services Limited (UK including NI)
- Sainsbury’s Bank plc (UK including NI)
- Other providers
- The Co-operative Group (UK including NI)
- Quinn Group (all Ireland)
- Saga Insurance and Personal Finance (UK including NI)
- Virgin Money (UK including NI)
The Consumer – Receptiveness to Change
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- Key points
- RoI consumers becoming harder to convince
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- Figure 8: Agreement with ‘supermarkets and retailers should not get involved in personal finance’, NI and RoI, 2003-08
- Younger consumers more enthusiastic about NTPs
- Is trust an obstacle or opportunity for NTPs?
Opportunities for Future Growth
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- Key points
- Growth in internet and telephone banking a boon for NTPs
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- Figure 9: Percentage point difference in methods used to access banking services, NI and RoI, 2007-08
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- Figure 10: Agreement with ‘I often refer to the internet before making a purchase’, NI and RoI, 2003-08
- It’s good to talk
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- Figure 11: Methods used to access banking services, NI and RoI, 2008
- Irish consumers still prefer a personal service ... but a speedy one also
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- Figure 12: Top five most important factors when choosing a current account and savings account, NI and RoI, 2008
- The importance of in-store advertising for financial products
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- Figure 13: Agreement with ‘I look with interest at advertising for financial services’, NI and RoI, 2007 and 2008
Appendix
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- Driving growth in the NTP market
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- Figure 14: Agreement with ‘Convenience often plays a part in my purchase decisions’, NI and RoI, 2006-08
- Figure 15: Agreement with ‘To do my shopping by internet makes my life easier’, NI and RoI, 2003-08
- Broader market environment
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- Figure 16: Respondents who have accessed the internet in the last 12 months, NI, 2008
- Figure 17: Respondents who have accessed the internet in the last 12 months, RoI, 2008
- Barriers to market growth
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- Figure 18: Respondents who access a bank branch for financial advice, NI and RoI, 2006-08
- The Consumer – Receptiveness to change
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- Figure 19: Agreement with ‘Supermarkets and retailers should not get involved in personal finance’, NI and RoI, 2008
- Figure 20: Agreement with ‘Supermarkets and retailers should not get involved in personal finance’, NI and RoI, 2003-08
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- Figure 21: Attitudes towards banking, NI and RoI, November 2007
- Figure 22: Disagreement with ‘Supermarkets and retailers should not get involved in personal finance’, NI and RoI, 2003-08
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- Figure 23: Disagreement with ‘Supermarkets and retailers should not get involved in personal finance’, NI, 2008
- Figure 24: Disagreement with ‘Supermarkets and retailers should not get involved in personal finance’, RoI, 2008
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- Figure 25: Agreement with ‘I like changing brands’, NI and RoI, 2008
- Figure 26: Agreement with ‘I like changing brands’, NI and RoI, 2007 and 2008
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- Figure 27: Agreement with ‘I always look out for special offers’, NI and RoI, 2008
- Figure 28: Agreement with ‘I always look out for special offers’, NI and RoI, 2003-08
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- Figure 29: Attitudes towards finance, NI, 2003-08
- Figure 30: Attitudes towards finance, RoI, 2003-08
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- Figure 31: Agreement with ‘I like to pursue a life of challenge, novelty and change’, NI and RoI, 2003-08
- Figure 32: Agreement with ‘I like to try out new recipes’, NI and RoI, 2003-08
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- Figure 33: Agreement with ‘I like to try out new food products’, NI and RoI, 2003-08
- Figure 34: Agreement with ‘I only buy trusted products, ones I know’, NI and RoI, 2007 and 2008
- Opportunities for future growth
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- Figure 35: Methods of accessing banking services, NI, 2006-08
- Figure 36: Methods of accessing banking services, RoI, 2006-08
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- Figure 37: Agreement with factors that would improve a consumer’s banking experience, NI and RoI, 2008
- Figure 38: Agreement with factors that would improve a consumer’s banking experience, NI, 2008
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- Figure 39: Agreement with factors that would improve a consumer’s banking experience, NI, 2008
- Figure 40: Agreement with factors that would improve a consumer’s banking experience, NI, 2008
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- Figure 41: Agreement with factors that would improve a consumer’s banking experience, RoI, 2008
- Figure 42: Agreement with factors that would improve a consumer’s banking experience, RoI, 2008
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- Figure 43: Agreement with factors that would improve a consumer’s banking experience, RoI, 2008
- Figure 44: Number of respondents who carry out online banking as an online activity, NI and RoI, 2003-08
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- Figure 45: Agreement with ‘I often refer to the internet before making a purchase’, NI and RoI, 2003-08
- Figure 46: Agreement with ‘It’s important that a bank understands my individual needs’, NI and RoI, 2008
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- Figure 47: Agreement with ‘It's important that a bank understands my individual needs’, NI and RoI, 2003-08
- Figure 48: Most important factors when shopping for groceries, NI and RoI, 2008
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- Figure 49: Agreement with ‘I’m tempted to buy products I’ve seen advertised, NI and RoI, 2003-08
- Figure 50: Agreement with ‘I look with interest at advertising for financial services’, NI and RoI, 2008
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- Figure 51: Agreement with ‘I look with interest at advertising for financial services’, NI and RoI, 2007-08
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