Table of Contents
Executive Summary
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- Product arrangement
- Insurance policies are the most commonly-arranged financial services products
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- Figure 1: Products arranged (including new or switched products) in the last three years, April 2015
- Most new products are the result of opportunism, but active engagement is key
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- Figure 2: Reasons given for arranging a new current account, credit card, savings account and/or mortgage, April 2015
- The research process
- Online research is key for all products
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- Figure 3: Information sources used to research financial products before purchase, April 2015
- Insurance buyers compare the market first: bank account buyers go direct to the provider
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- Figure 4: First information sources used to research financial products before purchase, April 2015
- Preferred purchasing method
- Consumers prefer to buy online, direct from their provider
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- Figure 5: Method used to arrange financial products in the last three years, April 2015
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- Figure 6: Agent used to arrange financial products in the last three years, April 2015
- Attitudes towards arranging financial products
- Taking personal responsibility is a valued quality
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- Figure 7: Agreement with attitudes towards researching and arranging financial services products, April 2015
Issues and Insights
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- The internet is now key at all stages of arranging a product
- The facts
- The implications
- Price can get people to switch, but other considerations make them stay
- The facts
- The implications
- The changing role of brand image
- The facts
- The implications
The Consumer – What You Need to Know
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- 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
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- 37% have arranged a new motor policy in the last three years
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- 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
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- 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
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- A fifth arranged a product because they keep up to date with products…
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- Figure 10: Reasons given for arranging a new current account, credit card, savings account and/or mortgage, April 2015
- …but opportunity is key
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- 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
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- Most people research financial products online…
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- Figure 12: Information sources used to research financial products before purchase, April 2015
- …but branches are still widely used
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- 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
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- Figure 14: Use of professional personal advice/guidance* to research financial products, by product arranged, April 2015
- Harness peer reviews to attract younger consumers
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- 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
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- Figure 16: Consumers who spoke to friends and/or family when arranging their most recent car or home insurance policy, by age, April 2015
First Point of Contact
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- Price comparison websites are the key first stop for research
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- 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
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- Offline points of sale are falling away
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- 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
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- Figure 19: Agent used to arrange financial products in the last three years, April 2015
The Road to Purchase
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- Current accounts
- Most common path to purchase
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- Figure 20: Current account purchase method, by initial research source, April 2015
- Credit cards
- Most common path to purchase
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- Figure 21: Credit card purchase method, by initial research source, April 2015
- Savings accounts
- Most common path to purchase
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- Figure 22: Savings account purchase method, by initial research source, April 2015
- Car insurance
- Most common path to purchase
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- Figure 23: Car insurance purchase method, by initial research source, April 2015
- Home insurance
- Most common path to purchase
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- Figure 24: Home insurance purchase method, by initial research source, April 2015
Attitudes towards Product Research and Purchase
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- It is essential to check Ts and Cs, but can it be done?
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- Figure 25: Attitudes towards researching and arranging financial services products, April 2015
- Keep it simple to avoid confusion
- Could regulation overcome apathy?
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- Figure 26: Agreement with attitudes towards researching and arranging financial services products, by product buying activity, April 2015
- Half prefer to do their own research than trust experts
- The price of loyalty
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- Figure 27: Agreement with the statement “Companies save their best offers for new customers”, by product buying activity, April 2015
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