英國消費者信用市場線上聚集者的抬頭

Abstract

Overview

Introduction

Online aggregators are a growing force in the distribution of consumer credit products. While they do pose a number of challenges to UK lenders, the latter must look to benefit from the many opportunities they offer.

Scope

• Discusses both the advantages and disadvantages online aggregators pose to UK lenders.
• Provides insight into how some lenders are innovating and taking advantage of this recently developed distribution channel.
• Details the main online aggregators with regards to consumer credit products and their business models.

Report Highlights

Online aggregators present a number of important advantages to lenders in terms of acquisition and distribution, including low cost of customer acquisition in comparison to other channels, a captive audience, a choice on the volume of customers they desire, relationships that are easy to manage and high visibility.

Lenders concerns are that aggregators' orientation on price means many lenders are unable to portray products in the way they want, that they can receive too many applications from the wrong kind of customer, and that customers acquired via this channel yield low profits and offer little cross-sell opportunity.

Online aggregators have changed the competitive dynamics of the consumer credit market. Price competition has increased, giving rise to lower margins for lenders, and product innovation for aggregator-only distribution is gradually becoming more common.

Reasons to Purchase

• Understand what lenders can do to take full advantage of the distribution opportunities posed by online aggregators.
• Keep track of competitors' strategies with regards to the online aggregator distribution channel.
• Gives you a competitive edge by understanding what the future holds for this channel of distribution.

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • Online aggregators are a growing phenomenon in the UK
    • Online aggregators generally earn a fee by linking consumers to financial services providers
      • Aggregators earn the core of their revenue in three ways, depending on their business model
    • As the number of Internet users has risen, online aggregators have become increasingly popular
    • Confused.com and moneysupermarlet.com are two of the largest aggregators for consumer credit products
      • moneysupermarket.com focused on consumer credit products when entering the market
      • Confused.com looks to become a significant player in consumer credit, following its success in insurance
  • Aggregators offer a number of acquisition advantages to lenders, but are not problem-free
    • Online aggregators chiefly allow for low-cost and large-scale acquisition
    • But lenders are concerned by aggregators' focus on price and the inability to know their applicants
      • Aggregators' orientation on price means many lenders are unable to portray products in the way they want
      • Lenders can receive too many applications from the wrong kind of customer
      • Customers acquired via this channel yield low profits and offer little cross-sell opportunity
  • Online aggregators have changed the competitive dynamics of the consumer credit market
    • Price competition has increased, giving rise to lower margins for lenders
      • The ' Big Four' players, although reluctant at first, have become active players in this channel too
    • Consumer credit product innovation for aggregator-only distribution is gradually becoming more common
  • In order to stay ahead, lenders have no choice but to embrace this form of distribution
    • It is ultimately in lenders' own interest to work with, rather than against, online aggregators
      • Even in the current difficult consumer credit environment, lenders still need to work with aggregators
    • The online aggregator space still has significant room to grow unless consumer skepticism gets in the way
      • A large number of other players, such as Tesco Personal Finance, have moved into this space
      • Only considerable consumer skepticism can really hamper this channel' s growth, but this is unlikely
    • Some aggregators are going into the editorial space and becoming opinion-makers within the industry
    • Aggregators are becoming more sophisticated comparers and need help from lenders to take this further
      • A number of aggregators allow for product differentiation by credit rating, but this is at a beginning stage
      • There is discussion around using customer feedback as a way to rate lenders, but this is a long way off
      • Aggregators are keen to draw up a code of conduct for transparency, which can only be good for lenders
• APPENDIX
  • Definitions
    • Consumer credit
    • Online aggregator
  • Methodology
  • Further reading
  • Relevant links
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: moneysupermarket.com group revenue and operating profit, 2004-06 (£m)
    • Table 2: Revenue and profit for Confused.com, 2004-06 (£m)