Brand Overview: Finance - UK - July 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
Brand Leaders
Average usage of FS brands is lower than other sectors
Figure 1: Top ranking of brands in the financial services sector, by overall usage, November 2015-May 2018
Non-traditional FS brands lead on trust
Figure 2: Top ranking of brands in the financial services sector, by agreement with “A brand that I trust”, November 2015-May 2018
Sunny and Amigo learn lessons
Figure 3: Top ranking of brands in the financial services sector, by satisfaction (net of “good” and “excellent” responses), November 2015-May 2018
Consumers inclined towards the big names
Figure 4: Top ranking of brands in the financial services sector, by commitment (net of “It’s a favourite brand” and “I prefer it over others”), November 2015-May 2018
Premium image leads to standout proposition
Figure 5: Top ranking of brands in the financial services sector, by differentiation (net of “It's a unique brand” and “It’s somewhat different from others”), November 2015-May 2018
Brand Reputation
Financial services brands less likely to be thought of as ethical
Figure 6: Top ranking of brands in the financial services sector, by agreement with “Ethical”, November 2015-May 2018
Face-to-face helps Post Office’s service reputation, but does not appear essential
Figure 7: Top ranking of brands in the financial services sector, by agreement with “A brand that has great customer service”, November 2015-May 2018
Few mainstream brands seen as exclusive
Figure 8: Top ranking of brands in the financial services sector, by agreement with “Exclusive”, May 2015 May 2018
Competency influenced by expertise elsewhere
Figure 9: Top ranking of brands in the financial services sector, by agreement with “Competent”, May 2015 May 2018
The Financial Services Brandscape
Users of brands focus on their individual experience
Figure 10: Average score for selected attributes in the financial services sector, by users and non-users of brands, November 2015 – May 2018
Price comparison sites excel compared to other categories
Figure 11: Average brand attitude scores for different financial services categories, November 2015 – May 2018
Consumers struggle to differentiate the big brands
Figure 12: Scores for trust and differentiation amongst biggest banking brands, November 2015-May 2018
Active loyalty measures help build perception of rewards
Figure 13: Top ranking of brands in the financial services sector, by agreement with “A brand that rewards loyalty”, November 2015-May 2018
People generally reluctant to switch bank of choice
Figure 14: Brands with the lowest proportion of lapsed users in the financial services sector, November 2015-May 2018
Loan brands take the heat off others
Figure 15: Top ranking of brands in the financial services sector, by agreement with “Unethical”, November 2015-May 2018
Price comparison sites are the largest spenders on advertising
Figure 16: Total above-the-line, online display and direct mail advertising expenditure in the financial services sector, by top brands, 2017
What we think
BRAND LEADERS – WHAT YOU NEED TO KNOW
Average usage of FS brands is lower than other sectors
Non-traditional FS brands lead on trust
Sunny and Amigo learn lessons
Consumers inclined towards the big names
Premium image leads to standout proposition
BRAND USAGE
Average usage of FS brands is lower than other sectors
Figure 17: Top ranking of brands in the financial services sector, by overall usage, November 2015-May 2018
PCWs and big-name banks most used in last year
Figure 18: Top ranking of brands in the financial services sector, by usage in the last 12 months, November 2015-May 2018
TRUST IN FINANCIAL SERVICES BRANDS
Non-traditional FS brands lead on trust
Figure 19: Top ranking of brands in the financial services sector, by agreement with “A brand that I trust”, November 2015-May 2018
PCWs are detached from negative associations
Aviva and Direct Line’s proposition aids trust
SATISFACTION AND RECOMMENDATION
Satisfaction with FS brands is lower than average
Sunny and Amigo learn lessons
Figure 20: Top ranking of brands in the financial services sector, by satisfaction (net of “good” and “excellent” responses), November 2015-May 2018
Banking brands able to enthuse customers
Figure 21: Top ranking of brands in the financial services sector, by proportion of excellent reviews, November 2015-May 2018
PCWs earn recommendation on basis of proposition
Figure 22: Top ranking of brands in the financial services sector, by likely recommendation, November 2015-May 2018
BRAND PREFERENCE 
Post Office commitment and usage work in tandem
Consumers inclined towards the big names
Figure 23: Top ranking of brands in the financial services sector, by commitment (net of “It’s a favourite brand” and “I prefer it over others”), November 2015-May 2018
BRAND DIFFERENTIATION
Premium image leads to standout proposition
Direct Line and Churchill stand out in a crowded field
Figure 24: Top ranking of brands in the financial services sector, by differentiation (net of “It's a unique brand” and “It’s somewhat different from others”), November 2015-May 2018
Advertising is not always influential
BRAND REPUTATION – WHAT YOU NEED TO KNOW
Financial services brands less likely to be thought of as ethical
Ethical behaviour largely focuses on inclusivity
Face-to-face helps Post Office’s service reputation, but does not appear essential
Few mainstream brands seen as exclusive
Competency influenced by expertise elsewhere
ETHICAL BRANDS
Financial services brands are less likely to be thought of as ethical…
Figure 25: Top ranking of brands in the financial services sector, by agreement with “Ethical”, November 2015-May 2018
…but only just
Press coverage may reaffirm consumer confidence in their own brands
Ethics is a passive concept
ETHICAL ACTIVITY
Ethical behaviour largely focuses on inclusivity
Lloyds Bank wins Diversity in Advertising award
Halifax, Lloyds and Nationwide go autism-friendly
Lloyds and HSBC develop dementia services
The Co-operative Bank works its way back up…
Figure 26: Agreement with “ethical” for Co-operative Bank, March 2012-May 2017
…but Triodos seeks to capitalise on ethical uncertainty
Figure 27: Triodos launches current account, May 2017
American Express fights plastic
Figure 28: Parley joins up with American Express to create ocean plastic card, June 2018
CUSTOMER SERVICE
The importance of customer service
Face-to-face helps Post Office, but does not appear essential
Figure 29: Top ranking of brands in the financial services sector, by agreement with “A brand that has great customer service”, November 2015-May 2018
Direct Line and Aviva offer customers reasons to seek them out
Customer service opportunities need to be taken advantage of
Personal experience of brands is positive
Financial services brands struggle with perception versus reality
Figure 30: Average scores for usage and perceived great customer service in the financial services and retail sector, January 2015-May 2018
PRESTIGE AND PREMIUM BRANDS
Few mainstream brands are seen as exclusive
Figure 31: Top ranking of brands in the financial services sector, by agreement with “Exclusive”, May 2015 May 2018
Bupa benefits from the image of PMI in general
Figure 32: Top ranking of brands in the financial services sector, by agreement with “Prestigious”, May 2015 May 2018
COMPETENCY AND RELIABILITY
Competency influenced by expertise elsewhere
Figure 33: Top ranking of brands in the financial services sector, by agreement with “Competent”, May 2015 May 2018
Post Office most likely to be considered reliable
Figure 34: Top ranking of brands in the financial services sector, by agreement with “Reliable”, May 2015 May 2018
THE FINANCIAL SERVICES BRANDSCAPE – WHAT YOU NEED TO KNOW
Users of brands focus on their individual experience
Price comparison sites excel compared to other categories
Consumers struggle to differentiate the big brands
Active loyalty measures help build perception of rewards
People are generally reluctant to switch bank of choice
Loan brands take the heat off others
Price comparison sites are the largest spenders on advertising
MY BRAND VS YOUR BRANDS
Users of brands focus on their individual experience
Figure 35: Average score for selected attributes in the financial services sector, by users and non-users of brands, November 2015-May 2018
Sunny users note its different proposition
First Direct’s reliability and competency
Figure 36: Top scoring brands for selected attributes, by users and non-users, November 2015-May 2018
Greatest disparity in formation of trust
Figure 37: Average score for brand attitudes in the financial services sector, by users and non-users of brands, November 2015-May 2018
Post Office and Bupa demonstrate brand strength
Figure 38: Top scoring brands for brand attitudes, by users and non-users, November 2015-May 2018
THE DIFFERENCE BETWEEN FINANCIAL SERVICES CATEGORIES
Price comparison sites excel
Figure 39: Average brand attitude scores for different financial services categories, November 2015 – May 2018
Banking brands lack differentiation
Advertising assists PCW standout
Figure 40: Brand usage, commitment and differentiation, by average scores for different financial services categories, November 2015-May 2018
Insurance performance cannot prevent churn
PCWs recommended even without high satisfaction
Figure 41: Brand experience, by average scores for different financial services categories, November 2015-May 2018
ESTABLISHED BANKS VS CHALLENGER BANKS
Consumers struggle to differentiate the big brands
Figure 42: Scores for trust and differentiation amongst biggest banking brands, May 2018
A lack of branch network can make a difference
Figure 43: Scores for trust and differentiation amongst challenger banking brands, May 2017-May 2018
Challenger brands lack reputation of the established
Figure 44: Average scores for brand attitudes amongst established banks and challenger banks, by users and non-users, May 2017-May 2018
Concerns about size influence perceptions
Figure 45: Average scores for brand traits amongst established banks and challenger banks, May 2017-May 2018
Experience of established banks also stronger
Figure 46: Average brand scores for experience-related attributes amongst established and challenger banks, May 2017-May 2018
Consumers may turn to challengers for products with fewer touchpoints
Challenger brands recognised for deals and innovation
New digital-only banks make a splash online
Figure 47: Online mentions for banking brands, June 2014-June 2018
Figure 48: Topic cloud around Monzo, June 2014-June 2018
Sponsorship can make a difference
Figure 49: Topic clouds around First Direct and Virgin Money, June 2014-June 2018
LOYALTY IN FINANCIAL SERVICES
Active loyalty measures help build perception of rewards
Figure 50: Top ranking of brands in the financial services sector, by agreement with “A brand that rewards loyalty”, November 2015-May 2018
Financial services generally considered poor for loyalty
Santander and Halifax lead the way in banking brands
Few insurance brands recognised for rewarding loyalty
CUSTOMERS AND SWITCHING
People generally reluctant to switch bank of choice
Figure 51: Brands with the lowest proportion of lapsed users in the financial services sector, November 2015-May 2018
Branches remain key to the status quo…
…and could still encourage new customers
Figure 52: Virgin Money Store in Sheffield, May 2018
Travel money and insurance brands struggle to keep customers
Figure 53: Brands with the highest proportion of lapsed users in the financial services sector, May 2015-Novembr 2018
Consumers happy to stay with insurance providers…
…but price gets in the way
Opportunity for customer service to break the cycle
THE IMPACT OF TECHNOLOGY IN FINANCIAL SERVICES
The importance of tech in modern banking
Comfort with online services opens up chatbot potential
When tech goes wrong – Tesco Bank and TSB
Figure 54: Proportion of online conversation around Tesco Bank and TSB, January 2016-May 2018
Tesco Bank avoids lasting damage, TSB not so lucky
Figure 55: Proportion of positive reviews for TSB and Tesco Bank, November 2015-May 2018
Tech problems could knock confidence in challenger brands
NEGATIVITY IN THE LOAN CATEGORY
Loan brands take the heat off others
Figure 56: Top ranking of brands in the financial services sector, by agreement with “Only cares about profits”, November 2015-May 2018
Consumers do not differentiate between types of loan brand
Figure 57: Top ranking of brands in the financial services sector, by agreement with “Irresponsible”, November 2015-May 2018
Wonga is considered unethical by more people than any other brand
Figure 58: Top ranking of brands in the financial services sector, by agreement with “Unethical”, November 2015-May 2018
Loan brands perform more strongly among users…
…but reputation likely to limit word-of-mouth positivity
Negativity provides opportunity for more recognisable brands
ADVERTISING AND MARKETING ACTIVITY
Adspend has been consistent over last four years
Figure 59: Total above-the-line, online display and direct mail advertising expenditure in the financial services sector, January 2015- May 2018
Advertising is concentrated in two parts of the year
Figure 60: Total above-the-line, online display and direct mail advertising expenditure in the financial services sector, by month, January 2015-May 2018
Price comparison sites are the largest spenders in the sector
Figure 61: Total above-the-line, online display and direct mail advertising expenditure in the financial services sector, by top brands, 2017
Confused.com highlights savings potential
Figure 62: Confused.com’s The Sheep Whisperer ad, September 2017
Comparethemarket.com promotes loyalty initiative
Figure 63: Comparethemarket.com’s Compare the Meerkat ad promoting Meerkat Movies, March 2018
Direct Line and Aviva advertise in lieu of price comparison presence
Over-50s life insurance targeted by advertisers
Figure 64: Welcome to Life After 50 SunLife TV Ad, March 2017
Nielsen Ad Intel coverage
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
APPENDIX – BRANDS USED