Table of Contents
Issues in the Market
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- Key themes in the report
- Definition
- Abbreviations
Insights and Opportunities
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- Keeping the consumer up-to-date
- A more proactive attitude
- Taking the formality out of finance
- Testimonials to increase trust
Market in Brief
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- Surge in demand for debt advice fuelled by the recession
- Trust – a key barrier to consumers seeking advice
- Changes in market structure to benefit consumers
- Regulatory bodies aim to increase consumers’ financial capability
- Number of IFAs set to rise throughout recession
- In-branch most popular channel for financial advice
Fast Forward Trends
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- Trend 1: The Lost Generation
- What's it about?
- What we've seen
- Specifics
- What next?
- Trend 2: Starter Marriages?
- What's it about?
- What we've seen
- Specifics
- What next?
Internal Market Environment
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- Key points
- Major restructuring of UK financial advice market
- Widening the scope for advisers and consumers alike
- More changes imminent in UK market
- IFAs moving toward fee-based business
- More stringent regulation to benefit consumers
- Modernising the RoI advice market
- Debt management protocol welcomed during crisis
- Steps taken to overhaul the RoI intermediary market
- Consumer Protection Code continuing to guide advisers
- Promoting consumer empowerment
- Enabling consumers to better manage their finances
- Launch of itsyourmoney.ie
- Financial capability in the UK
- Launch of moneymadeclear.gov.uk
Broader Market Environment
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- Key points
- Recession forcing consumers to rethink their finances
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- Figure 1: Economic outlook for NI and RoI, 2008-10
- Unemployment a key factor in consumer debt crisis
- Irish consumers struggling to cope
- An increased need for protection products
- Low interest rates stimulating interest in alternative wealth options
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- Figure 2: Average annual UK and eurozone interest rates, January 2003-May 2009
- NI housing market showing some signs of recovery
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- Figure 3: Monthly growth of average house prices in RoI, Jan 2006-July 2009
- Credit standards ease somewhat
- Consumer spending and confidence on the up
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- Figure 4: Consumer sentiment index, RoI, January 2003-September 2009
- Changes in population structure advantageous to advice market
- Life expectancy on the rise
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- Figure 5: Life expectancy at birth, by gender, NI, 1991-2008
- Figure 6: Life expectancy at birth, by gender, RoI, 1990-2007
- An aging population means planning ahead
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- Figure 7: Percentage change in population projections, by age group, NI, 2008-58
- Figure 8: Percentage change in population projections, by age group, RoI, 2006-41
Barriers to Seeking Advice
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- Key points
- The rise of the self-informed consumer
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- Figure 9: How respondents prefer to receive/gather information about their banking needs (either existing or new queries), RoI, June 2008
- Online a popular channel for consumers to access information
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- Figure 10: Banking/personal finance activities conducted online, RoI and NI, September 2009
- Some providers not convinced of consumers’ knowledge
- A positive response to internet as key research tool
- Credit crunch denting consumer’s faith in financial institutions
- Adding insult to injury
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- Figure 11: Number of complaints received by Financial Services Ombudsman, by type of financial institution, RoI, 2006-08
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- Figure 12: Number of new cases received by the Financial Ombudsman Service, UK, 2006-09
- Impact on the financial advice market
- Taking matters into their own hands
Alternative Sources of Financial Advice
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- Key points
- Plenty of other options for consumers
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- Figure 13: Sources of financial advice and information
Strengths and Weaknesses
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- Strengths
- Weaknesses
Market Size
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- Key points
- Insurance firms driving intermediary numbers up
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- Figure 14: Total number of regulated retail intermediaries, RoI, 2005-08
- Interest in mortgage advice accelerating during recession
- Different perspective in UK
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- Figure 15: Number of directly authorised retail intermediaries, UK, January 2006-September 2009
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- Figure 16: Number of directly authorised retail intermediaries, NI, September 2009
Who’s Innovating?
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- Key points
- Supporting customers in the economic downturn
- Enabling younger consumers to be financially prepared
- Partnership to encourage responsible spending
- Pensions made simple for consumers
- Permanent TSB modernises its distribution networks
- Organising home insurance at the click of a mouse
Companies and Products
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- Key points
- Banks and building societies
- Abbey National plc
- Alliance & Leicester
- Allied Irish Bank (AIB)
- An Post Group
- Aviva
- Bank of Ireland Group (BoI)
- Halifax (Bank of Scotland Ireland Limited)
- Halifax (HBOS plc)
- HSBC Bank plc
- Irish Life & Permanent Group plc
- Nationwide
- National Irish Bank (NIB) and Northern Bank
- Post Office
- Ulster Bank Group
- Brokers
- Greenlight Mortgages
- The Mortgage Shop
- Independent Financial Advisers (IFAs)
- Finance Matters NI Ltd
- Investwise
- McCarthy & Associates Financial Consultants Ltd
- Websites
- Moneysupermarket.com
- Comparethemarket.com
- Confused.com
The Consumer and Channels to Market
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- Key points
- Internet banking accelerating in RoI
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- Figure 17: Methods used to access banking services, NI, 2006-09
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- Figure 18: Methods used to access banking services, RoI, 2006-09
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- Figure 19: Broadband internet penetration, NI and RoI, 2004-09
- Branch banking wins hands down
- RoI consumers branch aficionados
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- Figure 20: Reasons for using branch, telephone and internet banking, NI, 2009
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- Figure 21: Reasons for using branch, telephone and internet banking, RoI, 2009
- Rise in number of consumers seeking in-branch advice
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- Figure 22: Percentage of respondents who visit their branch for financial advice, NI and RoI, 2006-09
- Major financial decisions requiring specialist knowledge
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- Figure 23: Percentage of respondents who arranged a death only life assurance policy through an insurance broker/independent financial adviser, NI and RoI, 2004-09
- Familiarity a key factor in mortgage arrangement
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- Figure 24: How respondents arranged their mortgage, NI and RoI, 2009
- Greater emphasis on accessing insurance policies directly
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- Figure 25: How respondents arranged travel insurance policy, RoI, 2004-09
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- Figure 26: How respondents arranged travel insurance policy, NI, 2004-09
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- Figure 27: How respondents arrange home insurance policy (buildings and contents insurance from the same insurer), RoI and NI, 2007-09
Receptiveness to Financial Advice
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- Key points
- NI target groups
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- Figure 28: NI target groups, 2009
- Fast-lane Financers
- Responsibility Shirkers
- Financially-receptive
- Guidance Seekers
- RoI target groups
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- Figure 29: RoI target groups, RoI, 2009
- DIY Bankers
- Prudential
- Breezy Bankers
- Tech-wary
Appendix
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- Internal Market Environment
- Stipulations for financial advisers resulting from the FSA’s A Review of Retail Distribution report
- Recommendations for intermediaries resulting from the Financial Regulator’s Review of the Intermediary Market report
- Aim of the Financial Regulator’s Improving Financial Capability policy
- Barriers to Seeking Advice
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- Figure 30: Agreement with lasting impressions the experience of the recession has had on respondents, May 2009
- The Consumer and Channels to Market
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- Figure 31: Methods used to access banking services, by demographic breakdown, NI, 2009
- Figure 32: How life assurance policy was arranged (death only policy), by demographic breakdown, NI, 2009
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- Figure 33: How mortgage was arranged, by demographic breakdown, NI, 2009
- Figure 34: How car insurance was arranged, by demographic breakdown, NI, 2009
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- Figure 35: How travel insurance policy was arranged, by demographic breakdown, NI, 2009
- Figure 36: How home insurance was arranged (buildings and contents from the same insurer, by demographic breakdown, NI, 2009
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- Figure 37: Methods used to access banking services, by demographic breakdown, RoI, 2009
- Figure 38: How life assurance was arranged (death only policy), by demographic breakdown, RoI, 2009
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- Figure 39: How mortgage was arranged, by demographic breakdown, RoI, 2009
- Figure 40: How car insurance was arranged, by demographic breakdown, RoI, 2009
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- Figure 41: How holiday/travel insurance was arranged, by demographic breakdown, RoI, 2009
- Figure 42: How home insurance was arranged (building and contents insurance from the same provider), by demographic breakdown, RoI, 2009
- Consumer typologies
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- Figure 43: Typologies’ agreement with statements relating to finance, NI, 2009
- Figure 44: Typologies’ agreement with methods used to access banking, reasons for using certain banking methods and hours of use of telephone and internet banking, NI, 2009
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- Figure 45: Typologies, by demographic breakdown, NI, 2009
- Figure 46: Typologies’ agreement with statements relating to finance, RoI, 2009
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- Figure 47: Typologies, by demographic breakdown, RoI, 2009
- Figure 48: Typologies’ agreement with methods used to access banking, reasons for using certain banking methods and hours of use of telephone and internet banking, RoI, 2009
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