英國利基金融市場

Abstract

Today, consumers are more individualistic than ever and they expect financial products and services to address them as individuals. In this environment, the mass market is no longer the target, but rather a series of small sub-market sectors.

While financial services firms can survive without a niche, to flourish in today' s consumer market requires a greater concentration on specific market segments. The major institutions are finding that if they remain as generalists, their products and services become diluted, while smaller firms are better able to compete against the high street giants if they attempt to carve out a niche for themselves.

This report looks at four key niche target groups within the financial services industry:

• newly arrived Eastern and Central European immigrants
• students
• seniors (over-65s)
• investors who want to buy Shari' a-compliant financial products.

A core focus will be on the process of finding and serving these potentially profitable market segments and on the current efforts that have been made to design custom-made products or services for them. The report draws on a mixture of industry and consumer research, including exclusively commissioned research covering product ownership and attitudes among both Central and Eastern European immigrants, and the Muslim community - two market segments that have attracted considerable attention from even mainstream financial services firms.

Table of Contents

• Issues in the Market
• Abbreviations/Definitions
• Insights and Opportunities
• Building awareness by building communities
• More lessons for students?
• The art of financial management
• Shifting focus to the young
• Market in Brief
• Eastern and Central European finance
• The Polish pound begins to speak
• The market characteristics: Young, gifted and Polish
• Product development centres on the Polish market
• The current provision: Simplicity drives the market
• Marketing messages: Talk to them in their own language
• Where more work needs to be done
  • Figure 1: Ownership of financial products, May 2008
  • Figure 2: Awareness of the marketing and sales efforts of the major banks, May 2008
• But let' s give the banks some credit
• Student finance
• The future of financial services
• Spending -- and borrowing
• The market characteristic: Young, gifted and potentially loaded
• The current provision: Limited, the first signature is all important
• Marketing opportunities: Banks need to get smarter
• Senior finance
• A market coming of age
• The size of the target market: A large ' niche' sector
• A niche looking to boost its income
• The market characteristic: Highly diverse and individualistic
• Significant financial diversity
• Important age diversity
• The current provision: Are financial services firms taking this market seriously?
• Marketing messages: Don' t underestimate the senior consumer
• This is a dynamic market
• Shari' a finance
• A slow burn, but has the fire started to take hold?
• The size of the target market: 2 million Muslims and 1.3 million of working age
• Mortgages lead the way
• The market characteristic: Young, family-oriented but fragmented
• The current provision: mortgages well established, the rest playing catch-up
• Range of products is expanding
• Marketing opportunities: Community-focused
• Language is important
• Fast Forward Trends
• Trend 1: Agelessness
• Old getting younger, young getting older
• Students and seniors -- what way now for financial responsibility?
• Young at heart
• Trend 2: Staying Connected
• Online enablers
• Uniting the niche
• Niches Compared
• How well has the industry marketed?
• The characteristics of each niche
  • Figure 3: A comparison of the main characteristics of each niche, 2008
• Current provision
  • Figure 4: The level of product development, by niche, 2008
• Marketing techniques employed
  • Figure 5: The marketing techniques used to target each niche, 2008
• Meeting requirements
  • Figure 6: How well have financial companies targeted the four niches?, 2008
• Eastern and Central European Finance: Who are your Customers?
• Key points
• Why Eastern and Central European finance?
• Who is the target market?
• The Poles dominate
  • Figure 7: The number of approved applications for worker registration card and accession worker cards, by country, 2004-08
• They are ' legitimate workers'
• The market is maturing
  • Figure 8: The age breakdown of new approved applications for worker registration cards and accession worker cards, by age, 2004-08
• They are young and free -- but not necessarily single
  • Figure 9: Registered workers* with dependents, by year of application, 2004-08
• In low-skilled jobs....
  • Figure 10: The socio-economic profile of Eastern and Central European in the UK, May 2008
• ...earning low wages but working long hours...
  • Figure 11: Weekly income of the chief income earner (% by income band), May 2008
• ...despite being well educated
• Do you know your trippers from your blenders?
• The size of the target market?
• Not an easy task
• How niche is niche?
• 1.5% of current account holders
  • Figure 12: The number of adults owning basic finance products, 2007 and 2008
• Spending power of £8.4 billion
  • Figure 13: The aggregate spending power of Eastern Europeans, 2006-08
• A fluid market
• Is the target market shrinking?
• Eastern and Central European Finance: Understanding the Market
• Key points
• Product development timeline
  • Figure 14: Chronology of Eastern and Central European bank account developments in the UK, 2006-08
• Product- or language-led?
• Language developments
• Product developments
• Current accounts: A straightforward product meeting a need
• HSBC targets all immigrants
• NatWest launches the first Polish Account
• Lloyds TSB follows closely behind
• The prepaid card market: competition for the major banks
• Prepaid vouchers: Competition for credit cards
• Eastern and Central European Finance: Marketing Approaches
• Key points
• Language is important
• Targeted branches yes, but only in certain localities
• Advice services can lead to trading up
• Get the marketing mix right
• The specialist media grow
• Specialist press listings
• Remember, marketing begins at home
• Remember K.I.S.S.
• Points to remember
• Eastern European Finance: Consumer Research
• Key points
• Basic needs determine product ownership
  • Figure 15: Ownership of financial products, May 2008
• Bank accounts -- not just a short-term product
  • Figure 16: The attitudes towards opening a bank account in the UK, May 2008
• Ownership patterns similar to those for UK nationals
  • Figure 17: Ownership of financial products, by gender, age, socio-economic group and income, May 2008
• Should the banks stop Pole dancing?
  • Figure 18: Ownership of financial products, by language, May 2008
• Banks are on the right track
  • Figure 19: Eastern European attitudes towards key aspects of banks' operations, May 2008
• The old, poor and Non-Polish speakers need more help
  • Figure 20: Eastern European attitudes towards key aspects of banks' operations, by gender, age, socio-economic group, language and income, May 2008
• But has the marketing message been lost in translation?
  • Figure 21: Awareness of the marketing and sales efforts of the major banks, May 2008
• Advertising efforts falling on deaf ears?
• More work needed on non-Poles
  • Figure 22: Awareness of new financial products and services of the major banks, by gender, age, socio-economic group, language and income, May 2008
• Advertising focused on the more affluent and the mature
  • Figure 23: Awareness of financial advertising specifically targeted at Eastern Europeans, by gender, age, socio-economic group, language and income, May 2008
• The young, poor and non-Poles are being bypassed
  • Figure 24: Awareness of any financial product, service or advertising targeted at Eastern Europeans, by gender, age, socio-economic group, language and income, May 2008
• Shari' a Finance: Who are your Customers?
• Key points
• Why Shari' a finance?
• Who are the target market?
• Not the Muslim community, but the Muslim communities
  • Figure 25: How religious are Muslims?
• Second and third generation
• Potential for child bonds and insurance products
  • Figure 26: The age structure of the Muslim population compared with the UK population, 2001
• Scope for commercial business...
• ...but a community split along economic lines
  • Figure 27: The socio-economic breakdown of the Muslim community, June 2008
• The size of the target market
  • Figure 28: The number of Muslims in Great Britain (million), 1996-2007
• How niche is niche?
  • Figure 29: The proportion of the GB population which is Muslim, 1996-2007
• Nearly 400,000 UK Muslims hold Shari' a finance products
  • Figure 30: The number of holders of Shari' a-compliant financial products, June 2008
• Trends in the target market
  • Figure 31: The size of Shari' a mortgage market (gross lending), 2003-09
• Shari' a Finance: Understanding the Market
• Key points
• What is available on the market?
• Government support boosts the industry
• Shari' a mortgages
• Three mortgage models
• Key market providers
  • Figure 32: The leading Shari' a mortgage providers in the UK, 2008
• Now the insurance support is available...
• ...but some difficulties remain
• The product range is expanding
  • Figure 33: The Shari' a mortgage products available, June 2008
• Income multiples can be high
• Personal loans: Only one provider
• Shari' a current accounts: Becoming well established
• Crossing the niches: Islamic student accounts
• Shari' a-compliant worldwide money transfers
• Shari' a savings accounts: Only one provider
• Shari' a insurance: Just getting started
• Principle insurance launched
• The big boys waiting in the wings, and HSBC moves in
• Stockbroking: Established but no new entrants
• Islamic pensions: Interest is stirring
• Islamic investment funds: A few funds available
• Shari' a-compliant Child Trust Fund: Big potential
• Shari' a credit cards the next step?
• Shari' a Finance: Marketing Approaches
• Key points
• Get the community on your side
  • Figure 34: The regional distribution of Muslims in GB (% of population), 2001
• Target leaflet drops and distribution are effective
• Challenging perceptions
• The branch is key
  • Figure 35: The breakdown of the customer base of the Islamic Bank of Britain, by system used, end of 2007
• Use of the Muslim media
• Watch what you put on your brochures...
• ...and remember it' s not just Muslims who want Shari' a products
• Trust is a big issue
• Shari' a Finance: Consumer Research
• Key points
• Ownership of financial products is high
  • Figure 36: Ownership of financial products by UK Muslims, June 2008
• Women and the over-35s lead the market
  • Figure 37: Ownership of financial products by UK Muslims, by gender and age, June 2008
• Muslim C1s buck the norm
  • Figure 38: Ownership of financial products by UK Muslims, by socio-economic group and income, June 2008
• Urdu/Hindi and Bangla speakers the most likely to own
  • Figure 39: Ownership of financial products by UK Muslims, by language, June 2008
• 30% of Muslims own Shari' a-compliant products
  • Figure 40: Ownership of financial products by UK Muslims, June 2008
• A 940,000 gap
  • Figure 41: A picture of Shari' a product market penetration, June 2008
• Women again lead the market
  • Figure 42: Ownership of Shari' a-compliant financial products by UK Muslims, by gender and age, June 2008
• Income determines ownership but social grade is less important
  • Figure 43: Ownership of Shari' a-compliant financial products by UK Muslims, by socio-economic group and income, June 2008
• Are second-generation Muslims more interested in Shari' a products?
  • Figure 44: Ownership of Shari' a-compliant financial products by UK Muslims, by language, June 2008
• Gap analysis
  • Figure 45: Shari' a product penetration and gap analysis, by gender, age, socio-economic group, income and language, June 2008
  • Figure 46: Gap analysis for Shari' a finance products, June 2008
• Shari' a products are complementary
  • Figure 47: Attitudes towards and usage of Shari' a products by Muslims, June 2008
• Rich and mature are hardcore users
  • Figure 48: Muslims with positive attitudes towards SCFPs*, by gender, age, socio-economic group, income and language, June 2008
• Are Westernised Muslims less interested?
  • Figure 49: Muslims with ambivilent attitudes towards SCFPs*, by gender, age, socio-economic group, income and language, June 2008
• Could the banks do more?
  • Figure 50: Those believing that most banks don' t really care about catering to Muslims, by gender, age, socio-economic group, income and language, June 2008
• Student Finance: Who are your Customers?
• Key points
• Why student finance?
• Who are the target market?
• Young, free, single -- and affluent?
  • Figure 51: Total number of UK-based university applicants aged 18 and under, 2007 and 2008
• The size of target market
• Over 2 million students -- but the focus is on UK students
  • Figure 52: All student enrolments on Higher Education, by domicile, 2006/07
• How niche is niche?
• Less than 4% of the adult population
  • Figure 53: Student numbers relative to the UK population, 2007
• Less than 2% of consumer spending power
  • Figure 54: Estimated expenditure and incomes for UK full-time students in the UK, 2007
• Trends in the Target Market
• Student numbers rising, but the rate of growth is slowing...
  • Figure 55: All student enrolments on HE courses, 2002/03-2006/07
• Could the market have reached a peak?
• The funding gap -- key role for banks to play
  • Figure 56: The student funding gap*, 2004-07
• Student debt keeps rising
  • Figure 57: Full-time UK student amounts owed and savings (£m), 2004-07
• Commercial lenders important...
  • Figure 58: Estimated structure of student debt (%), 2007
• ...but limited revenue possibilities
• Student Finance: Understanding the Market
• Key points
• What is available on the market?
• Student accounts: The basic, well-established essential
  • Figure 59: Eligibility criteria on student accounts, June 2008
  • Figure 60: Overdraft limits on student current accounts, June 2008
• Prepayment cards: For young people and students
  • Figure 61: Examples of prepayment cards aimed at students, June 2008
• Dedicated student credit cards: Not much activity
  • Figure 62: Examples of student credit cards, June 2008Student insurance: Small range of policies
  • Figure 63: Buildings and contents insurance, 2006 and 2007
• High-risk targets?
  • Figure 64: Examples of providers offering student insurance products, June 2008
• The insurance market gap
  • Figure 65: Car ownership, students and non-students, 2003-07
• A gap for gap-year cover?
  • Figure 66: Holiday and travel insurance, 2000-07
• Student personal loans: Loans sold to students
  • Figure 67: Facilities Used In last 12 months, 2003-07
• Student Finance: Marketing Approaches
• Key points
• Get' em as young as possible...
• ...but why wait until they have an offer?
• Give ' em ' something' for ' nothing'
  • Figure 68: Examples of the freebies offered on student bank accounts, June 2008
  • Figure 69: Examples of the freebies offered on student credit cards, June 2008
• A student is for life -- not just university
• Remember you' re targeting students, not the young
• The laptop effect
• Use the arts link
• Offline advertising channels still valuable...
  • Figure 70: The proportion of adults aged 18+ who are students, by newspaper readership and supermaret usage, April 2008
• ...as are the student media
• The campus is also an advertising medium
• Student Finance: Channels to Market
• Key points
• All' s Fair in love and war...
• ..and remember other events as well
• On-campus branches less important today
• Use new tech for banking services and marketing
  • Figure 71: The proportion of adults aged 18+ who are students, by technology usage, internet usage and commercial TV viewing, April 2008
• It' s the Facebook generation...
• ...but he who lives by viral marketing can die by viral marketing
• Student Finance: Consumer Research
• Key points
• Students have to rely on debt for their lifestyle
  • Figure 72: The current financial position of students, April 2008
• Student loans dominate student debt
  • Figure 73: Student indebtedness, 2007
  • Figure 74: Ownership of credit cards and store cards, students and non-students, by gender, 2007
  • Figure 75: Credit card ownership, by gender, 2003-07
• Managing their finances -- a more responsible approach?
  • Figure 76: Agreement/disagreement that ' I am very good at managing money' , students and non-students, by gender, 2007
• Dislike of debt is growing
  • Figure 77: Those definitely agreeing that ' I don' t like the idea of being in debt' -- students, by gender, 2003-07
• Don' t forget that students save as well
  • Figure 78: Ownership of savings account and ISAs, students and non-students, by gender, 2007
  • Figure 79: Type of account held, 2003-07
• Better at saving than their peers?
  • Figure 80: Agreement/disagreement that ' I am no good at saving money' , students and non-students, by gender, 2007
• Senior Finance: Who are your Customers?
• Key points
• Why senior finance?
• Who is the target market?
• Women increase in importance with age
  • Figure 81: Breakdown of senior adults, by gender and age, 2008
• It' s a couple market
  • Figure 82: The household composition of pensioners+ in GB, by gender, 2006/07
• A market where lifestyles and living arrangements change
  • Figure 83: The marital status of over-65s, April 2008
• Seniors are financially comfortable
  • Figure 84: The socio-economic and ACORN profile of seniors compared with all adults, April 2008
• From watchful to struggling
  • Figure 85: Classification of seniors (000), by their financial situation, April 2008
  • Figure 86: Financial situation of seniors, by wealth type, 2008
• Some are challenged and some are resilient
  • Figure 87: Segmentation of seniors in the UK, by broad type, 2008
• Financial power rests with the channelled and comfortable...
  • Figure 88: Segmentation of seniors, by financial factors, by age, 2007
• ...but issues remain
• Over £1 trillion in assets
  • Figure 89: The financial balance sheet of seniors, 2007
• Seven in ten own property outright
  • Figure 90: Home ownership pattern (%) of seniors compared with all adults, April 2008
• Seniors adopt new financial strategies
• The ' GOTYs'
  • Figure 91: Seniors with a young outlook on life, May 2008
• The size of the target market
• How niche is niche?
  • Figure 92: Senior market relative to consumers as a whole, 2007
• High savings ownership
  • Figure 93: The number of pensioners and adults holding various assets, 2006/07
• Trends in the target market
• Not falling behind in the income race
  • Figure 94: Estimates disposable income of seniors and all consumers, 2003-07
• The flow of money across the generations
• Income from employment of growing importance
  • Figure 95: The proportion of pensionable age* adults, by economic activity in GB, 2006/07
• Seniors grow as consumers...
• Figure 96: Estimated expenditure of seniors and all consumers, 2003-07
• ...and drive the savings market
  • Figure 97: Estimated savings of seniors and all consumers, 2003-07
• Increasingly wealthy market
  • Figure 98: Estimated balance sheet of seniors, 2005-07
• Senior Finance: Understanding the Market
• Key points
• What is available on the market?
• Premium packaged current account: One provider
• Savings accounts
• Credit cards: Only one provider
• Travel insurance: Not all seniors covered...
• ...despite a risk-averse target market
  • Figure 99: Holiday and travel insurance, 2003-07
• Few offer cover to over-80s
• Figure 100: The age limits on single-trip travel policies covering the seniors market, by age, June 2008
  • Figure 101: The age limits on annual multi-trip travel policies covering the seniors market, by age, June 2008
• Motor insurance
  • Figure 102: Ownership of motor insurance, 2003-07
• Funeral plans
  • Figure 103: The leading providers of funeral plans+, June 2008
• Life insurance products
  • Figure 104: Ownership of life insurance, 2003-07
• Expanding the market...
• ...but at a price
  • Figure 105: Over-50s life cover plans, June 2008
• Long-term care insurance
  • Figure 106: The number of long-term care policies+ in force at year end, by age of policyholder, 2004-07
• Variety of benefits on offer
  • Figure 107: Examples of long-term care policies, June 2008
• Equity release schemes
• Rebuilding reputations
  • Figure 108: Equity release+ new sales, 1991-2007
• Income generation key
• Three main product types
• Senior Finance: Marketing Approaches
• Key points
• Time to readjust attitudes?
• The silver saver gimmick
• Seniors are not that gullible
• Inform and entertain
• Age pride: The ' Dove effect'
• Don' t overdo the senior celebs
• Advertising quality is important...
• ...but debate rages in the marketing community
• Retirement -- not just a single lifestage
  • Figure 109: Seniors acquiring new interests and pastimes, by age, June 2008
• Simple and hassle-free, offering good value
• Don' t count on brand loyalty
  • Figure 110: Length of time with current motor insurance provider, by age, February 2008
• The channels to market
• Mainstream media work well but watch the small print
  • Figure 111: Time spent on main activity, by age group with rates of participation, 2005
• Radio an increasing important channel
• Don' t ignore new technology
  • Figure 112: New technology penetration among seniors (65+), April 2008
• Senior Finance: Consumer Research
• Key points
• One in four seniors are watchful of their finances
  • Figure 113: Financial clusters among seniors and all adults, April 2008
• Asset-rich ABs
  • Figure 114: The main financial clusters among seniors, by gender, socio-economic group, tenure and ACORN category, April 2008
• Seniors are good financial managers, consequently...
  • Figure 115: Indicators of seniors' abilities with their savings, spending and money management, April 2008
• ...debt levels are low
  • Figure 116: Debt products in which seniors owe money, April 2008
• Seniors like cash not credit
  • Figure 117: The proportion of adults paying off their credit card at the end of each month, April 2008
• Debt -- cause or effect?
  • Figure 118: Proportion of senior cluster group who owe money on any debt product, April 2008
• Asset ownership is high
  • Figure 119: Percentage of persons with selected assets, 2006/07
• Savings account ownership on the rise
  • Figure 120: Type of account held, 2003-07
• ISA ownership rising: more seniors paying tax...
• Figure 121: ISA ownership, 2003-07
• ...but interest in riskier savings has remained stable
  • Figure 122: Equity investment holdings (individual shares and collective investments), 2003-07