Abstract
Introduction
European consumer confidence has been more seriously damaged by the global
economic downturn than elsewhere, and the accompanying dampened expectations
must be acknowledged when meeting customers' financial needs.
Scope of this research
- Detailed analysis documenting European consumers' ' recessionary mindset'
and how this influences perceptions about current and future prospects
- Insights highlight how the economic downturn has affected emotional
wellbeing and financial security in Europe compared to the global average
- Detail discussion of what the downturn means for saving and investment
products and what must be done to once again engage consumers
- In-depth analysis into Europe' s growing online banking market' s
highlighting important opportunities for FS providers
Research and analysis highlights
Recessionary pressures have caused the European consumer to stand still,
uncertain of what move to make. European financial service providers need to
take this on board when trying to market their products, reassuring the
consumer enough to entice them to make positive changes.
Stress and happiness indictors are important to note as they reveal the state
of mind of the European consumer. Faced with the uncertainty of the economic
and financial landscape there exists an opportunity for financial services to
supply products that provide peace of mind.
Key reasons to purchase this research
- Gain a detailed understanding of changing consumer attitudes amid the
global downturn in order to build appropriate recessionary strategies
- Assist consumer segmentation and targeting efforts by accessing data from
Datamonitor' s Global FS Consumer Insight survey
Table of Contents
OVERVIEW
THE FUTURE DECODED
- INTRODUCTION: Understanding how recessionary mindsets influence attitudes
towards and actual consumption is vital
- The recessionary mindset of European consumers has intensified with
consumers' widespread belief that they are living in a recession
- TREND: Lower consumer confidence is reflected by a generally negative
outlook amongst European consumers
- Perceptions about the economy, job security and household financial
status in Europe have all worsened and there is limited optimism for the six
months ahead
- European consumers' downbeat forecasts appear to be negatively impacting
perceptions of quality of life, with stress levels up and personal happiness
down
- Stress levels have risen during the financial downturn, and this should
be reflected in the financial services offered
- INSIGHT: Faced with high uncertainty and low optimism for the future,
European consumers embrace the status quo
- European consumers experience increased concerns over their financial
products yet remain below the global average
- ACTION POINT: Financial services providers must meet the anxiety of
European consumers for the long term with products and advice geared to
alleviate this concern, and target providing support with a personal touch
- Increased concerns fail to elicit a significant response from European
consumers
- ACTION POINT: Financial services providers have a role to play in
reassuring consumers and boosting confidence in their wider financial
situation
- TREND: Confidence concerning one' s future personal financial situation
influences consumers' financial services decisions
- Confidence concerning future household financial security impacts
short-term savings
- Long-term savings plans are also impacted upon by household financial
confidence
- INSIGHT: There exists a not inconsiderable segment of consumers that have
the means and yet are still reluctant to save, both now and in the long run
- Financial services institutions must encourage these key consumer
segments to ask themselves: “Can I afford not to save?”
- INSIGHT: European online banking market reveals untapped potential
- Europeans check balances online but fail to make the move to some of the
other banking activities
- Heavy online use by price-driven consumers and those who are more
optimistic about their household finances
- ACTION POINT: Online banking interfaces must be improved to provide
service and security to rival in-house arrangements
APPENDIX
- Additional data
- Methodology
- Ask the analyst
- Datamonitor consulting
- Disclaimer
TABLES
- Table: Percent likely or unlikely to reduce credit card debt given level
of confidence in personal finances
- Table: Percent likely or unlikely to remortgage given level of confidence
in personal finances
- Table: Average level of response to “I trust my primary bank”
given registered/unregistered online
- Table: Frequency of online banking use by price-driven consumers
- Table: Frequency of online banking use by consumers who expect to be
better off financially
FIGURES
- Figure: Datamonitor' s Recession and Recovery portal will allow industry
players to continually identify emerging opportunities and track what is
happening in the UK economy as it develops
- Figure: More than half of European consumers strongly believe that their
country is in a recession, which is indicative of a deeper recessionary
mindset.
- Figure: Both Europeans and the rest of the world are revealing heightened
economic concerns, but Europeans appear particularly hard-hit.
- Figure: Europeans reveal their financial situation has worsened more than
the global average
- Figure: Job security has worsened, with Europeans hit harder than the
global average
- Figure: The unemployment rate is expected to peak in 2010 for most
European countries
- Figure: Consumer expectations for the next 12 months reveal mixed results
- Figure: Stress levels have increased in consumers' daily lives, with
Europeans seeing fewer improvements
- Figure: Levels of concern before downturn reveal Europeans show less
concern across the board
- Figure: Level of concerns have increased post-downturn, but Europeans
remain less troubled than the global average
- Figure: Some financial services providers have already made marketing
promotions focused around rebuilding confidence.
- Figure: European consumers are less likely to undertake all proposed
activities over the next six months
- Figure: Consumers likely to save are more likely to be optimistic about
their personal finances
- Figure: Consumers likely to invest in their pensions are more likely to be
optimistic about their personal finances
- Figure: Four distinct consumer segments have emerged within the savings
market
- Figure: Globally consumers regularly check their online bank balance, but
Europeans do so with higher frequency
- Figure: Consumer interest in other online banking activities reveals some
weaknesses in the online banking sector
- Figure: Consumers highlight branch and security issues as the two main
reasons for not using online banking
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