In this document we’re concentrating on the likely impact of some sizeable socio-demographic trends, technological advances and legislative changes in the near future.
By near future we mean in the next five years, so we’re hardly crystal ball gazing, and while the outcome of these developments is obviously uncertain, we believe the RDR, social media, financial services, fs, consumer finance, viewpoint, pensions ace are already some interesting insights into what the future may have in store for tomorrow’s financial consumers.
Work and Pensions report into UK corporate DB funding
The future of consumer finance in the next five years
1. Viewpoint / August 09 p.01
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics
The baby boomers
Ethnic diversity
Increasing connectivity
3
Viewpoint
Legislation
RDR
The pensions Act 2008
Free money guidance
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial August 09
brands do?
5 A final word
Looking ahead to changes in consumer finance
over the next five years
2. Viewpoint / August 09 p.02
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics
The baby boomers
Ethnic diversity
Introduction
Increasing connectivity
3 Legislation
RDR
The pensions Act 2008
Free money guidance
Welcome to the first Teamspirit Viewpoint
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
With all the ongoing turmoil in the
world of financial services, it would
be all too easy to get caught up in the
In this edition we’re concentrating
on the likely impact of some
sizeable socio-demographic trends,
uncertain, we believe there are already
some interesting insights into what the
future may have in store for tomorrow’s
brands do? headlights of the present perils and technological advances and legislative financial consumers.
dangers and forget about what’s on changes in the near future.
We hope you enjoy reading it. And if
5
the horizon.
By near future we mean in the next you’ve any thoughts of your own you’d
A final word Therefore it seemed fitting to use the five years, so we’re hardly crystal like to add, please send them to us at
future of consumer finance as a ball gazing, and while the outcome viewpoint@teamspirit.uk.com or call
starting point for our new viewpoint. of these developments is obviously David McCann on 020 7360 7878.
3. Viewpoint / August 09 p.03
1
Introduction
The future, it’s all about the experience
The future, it’s all about
the experience
The future of consumer
finance
Financial services in the future will need to
concentrate on creating more than hard
2
facts, big numbers and mere products.
Demographics
The baby boomers
Ethnic diversity
Increasing connectivity Whether you’re HSBC or The Century They will need to create reasons to
Building Society, the UK’s smallest believe, have a valued purpose and
Mutual, financial institutions new promise beyond the purely functional
3
and old will need to create memorable aspects of their offer, and create a
customer experiences and physical manifestation that embodies
Legislation
environments to ensure their the more elusive qualities of what
RDR
future success. they offer.
The pensions Act 2008
Free money guidance Just relying on the commodity of a
good rate of return and consumer
apathy will no longer ensure a future.
In short, financial services companies
4
are going to have to develop the
Future more-intangible aspects of their
What’s the future for business – their brands.
financial services?
Being online or digital
isn’t enough
What should financial
brands do?
5 A final word
4. Viewpoint / August 09 p.04
1
Introduction
The future of consumer finance
The future, it’s all about
the experience
The future of consumer
finance
As marketers we all probably feel that
we’ve seen enough turbulence in the
2
past few months to last a lifetime.
Demographics
The baby boomers
Ethnic diversity
Increasing connectivity businesses were competent at
Financial services have undergone So what changes are we
irreversible changes and it’d be nice talking about? managing money.
to have some stability, wouldn’t it?
We have identified a number of The credit crunch, the nationalisation
3
But unfortunately, while recessions developments all colliding at the of banks and the subsequent recession
Legislation and future government policies will same time to create this tsunami. have allowed consumers to question
RDR come and go, what we’ve just These include: the very core of why they choose
The pensions Act 2008 experienced in the financial markets these brands.
1. socio-demographics
Free money guidance is nothing compared to the challenges
2. regulation and policy This array of well-defined
that’ll continue to happen in the next
3. technology developments and distinct trends
few years.
are not only heading our way at
All these developments are rushing
4
For consumers, intermediaries and roughly the same time, but they are
towards banks and financial services
providers alike, the future of consumer interdependent and heavily overlap.
Future at a time when consumers have not
finance is going to look a lot different
What’s the future for just lost trust but have started to And over the next three to five years,
financial services? from how it does now – in fact we
question the very nature of what they we can expect these changes to have
Being online or digital believe that we should expect a tidal
once believed was true about them, a profound, lasting impact upon
isn’t enough wave of change.
namely that these institutions and the world of financial services.
What should financial
brands do?
5 A final word
5. Viewpoint / August 09 p.05
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics
The baby boomers
Ethnic diversity
Increasing connectivity
3 Legislation
RDR
The pensions Act 2008
Free money guidance
Demographics
The demographic changes
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
Demographic change 1:
the baby boomers
The biggest demographic change to
In fact, last year saw the number
of people of state pensionable age
exceed the number of children in
generations can expect to have
longer and longer retirements.
In fact for those retiring in 2012,
brands do? the UK for the first time. they’ll spend on average over 20
affect the UK in recent years has been
years in retirement.
the growth in our ageing population. This trend is set to continue. It’s
5
In fact the fastest-growing age group estimated that by 2031 over one third The other thing to consider is that the
A final word in the UK are those aged 80+ who of the total UK population will be over generations facing retirement now,
currently constitute 4.5% 55. The obvious knock-on effect of won’t be anything like the retirees
(2,749,507) of the total population*. this ageing population is that future of the past.
*Source: www.statistics.gov.uk/cci/nugget.asp?id=2157
6. Viewpoint / August 09 p.06
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2
This up-and-coming retirement Importantly, the over-50s account for That begs the question that no matter
Demographics generation are made up of the baby 80% of the UK’s wealth, which is what this expanding post-work
The baby boomers
boomers, the post Second World War expected to rise to 84% by 2012. generation choose to do in retirement,
Ethnic diversity children who’ve enjoyed a life of However, while they have the assets just how is the state going to fund this
Increasing connectivity relative comfort and ease. They’ll and the cash, in a recent poll, 63% populace if they can’t fund it
demand the same from their of boomers haven’t reviewed their themselves – especially when the size
retirement and will choose to lead a retirement plans as a result of the of the next generation is shrinking?
fuller, more active life after work than current financial crisis and are likely
3
any previous generation. to suffer as a consequence.
Legislation
RDR So if you were expecting to go to the
The opportunities post-work
The pensions Act 2008 bank of mum and dad any time soon,
Start a new career? you might be in for a shock, as they
Free money guidance
Volunteering? will have spent your prospective
Go travelling? inheritance on a hedonistic haze
Open a business? of retirement frippery or survival.
4
Take gap years?
Future 70 becomes the new 50
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
brands do?
5 A final word
7. Viewpoint / August 09 p.07
1
Introduction
Increasing immigration and diversity
The future, it’s all about
the experience
The future of consumer
finance
2
Demographic change 2: The increasing financial diversity, ethnic and cultural audiences over
Demographics ethnic diversity driven by distinct communities’ the next few years, means we’d better
The baby boomers financial capabilities, channel get used to saying a financial hello,
To fund the cost of this growing group
Ethnic diversity preferences, and cultural attitudes or is that:
of pensioners expecting to lead an
Increasing connectivity towards banking, saving and investing,
active and fulfilled retirement, the • Bonjour
will in turn drive a requirement for
UK will need to attract significant • Hola
new products, services and ultimately
numbers of migrant workers into • Witaj
new competitors as their home-grown
3
its economy. • Hei
financial brands will follow these
Legislation • Здороваться
We’ve seen a steady influx of migrants immigrant communities.
RDR
• Salut
since 1995, and this has grown to a
This might feel far-fetched, but we’ve
The pensions Act 2008 point where skilled migrants now
already seen some changes with the
Free money guidance account for 2.75% of the country’s
development of Polish bank accounts
workforce and their spending supported
and Shariah-compliant products. This
£8.4bn of the UK economy in 2007.
however is just the tip of the iceberg,
This is estimated to rise to a record
4
as over the next few years we will see
£77bn by 2012.*
Future an explosion of new solutions.
What’s the future for This influx of new migrants will not
So whether it’s money transfer or
financial services? only enhance our ethnic diversity over
multi-jurisdictional savings accounts,
Being online or digital the short and medium term, but will
isn’t enough the need for ever-more products to
affect the future landscape of financial
What should financial satisfy the needs of increasingly niche
brands do? brands and products.
5 A final word
*Source: www.hrmagazine.co.uk/news/798191/Migrants-will-contribute-77-billion-UK-economy-2012/
8. Viewpoint / August 09 p.08
1
Introduction
Increasingly seeking recommendation
The future, it’s all about
the experience
The future of consumer
finance
2
Demographic change 3: the internet as a retail channel, it
Demographics increasing connectivity – means the likely battleground for MySpace, founded August 2003
The baby boomers the boom in social networking the next generation’s £ or € is set
Facebook, founded February
Ethnic diversity to be fought in the aisles of social
The recommendation generation are 2004
Increasing connectivity networking sites, where the power
the next big group waiting in the Bebo, founded January 2005
of recommendation will rule.
wings that’ll have a major impact
upon financial services. Age is not a barrier All these are in the top ten of the
3
UK’s most-used websites.
Central to the rise of this generation Although 58% of social networkers
Legislation has been the rapid growth of social are under 35 years of age, the
RDR networking sites and technologies. baby-boomer generation aren’t
With the scale and impact of the
The pensions Act 2008 excluded, with sites such as Saga
There are an estimated 11 million ‘Recommendation Generation’ set to
Free money guidance Zone now bringing the older age
active social networkers in the UK who increase over the next ten years, this
groups into the social networking fold.
use online message boards, social new breed of consumer will become
communities and blogs, for information No matter what is said of this an increasingly lucrative target due to
4
about brands and products. That’s phenomenon, whether good or bad, their financial clout, purchasing power
Future double what it was two years ago and, as these networks develop to include and size.
What’s the future for of these, 38% access their profile at more mobile technologies and other
financial services? least once a day! forms of media such as video, text and
Being online or digital speech, you can be sure that the
isn’t enough When you couple this trend with the
stories, messages and opinions they
What should financial fact that during the next three years
brands do? spread travel ever quicker.
68% of consumers will happily use
5 A final word
9. Viewpoint / August 09 p.09
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics
The baby boomers
Legislation
Ethnic diversity
Increasing connectivity
3 Legislation
RDR
The pensions Act 2008
Free money guidance
Regulation, regulation, regulation
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
There are three bits of important
market legislation that are about to
impact the market in the next few
They are:
1. RDR
2. Pensions Act 2008
brands do? years. These initiatives will have a
3. Money guidance
profound and lasting impact upon
5
distribution, as well as consumer
A final word attitudes and behaviours.
10. Viewpoint / August 09 p.10
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2
The changes in distribution
Demographics
The baby boomers Legislation change 1: RDR distinction between independent, What’s almost certain about RDR
Ethnic diversity restricted and tied advice. is that it will continue the well-
RDR is set to be a huge catalyst for
Increasing connectivity defined exodus of advisers from
change in how financial investment RDR will no doubt lead to a
financial services.
products and services can and will be fragmentation and polarisation of
sold in the future. Currently it affects the market, with some brands and Because since the beginning of the
3
just investments and their advisers, organisations choosing to focus on 1990s, with each subsequent piece
Legislation but surely it will broaden out to distinct audiences such as high-net- of regulation, there has been a
RDR include a much wider range of worth or specialist areas. decrease in the total number of
products such as mortgages. advisers in the industry.
The pensions Act 2008 It is affectionately called the RD
Free money guidance RDR outlines distinct types of advice implementation programme and
and sales process that can be used has an expected date of instigation
with consumers, as it makes a of 2012.
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
brands do?
5 A final word
11. Viewpoint / August 09 p.11
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics Compulsion is on the horizon and approaching fast
The baby boomers Increased action will lead to increased interest
Ethnic diversity
Increasing connectivity Legislation change 2: accounts where your pension monies be the possible outcomes? Are the
The Pensions Act 2008 will accumulate over time. BRIC economies riskier than the
UK? What’s the difference between
To make sure we [UK plc] have While it should mean a better-funded
large cap and special situations?
3
some way of funding future retirees, retirement for future generations, it
And when’s the right time to buy
Legislation the Government introduced the is also likely to create a huge swell of
a pension annuity?
RDR Pensions Act in 2008, the name for consumer desire for information and
the new, Government-backed national interest about their money, where it’s All of which hasn’t been planned for
The pensions Act 2008
pension plan. going and how it’s invested. as yet, or if it has, it isn’t clear how
Free money guidance
this is going to be communicated,
This piece of legislation will introduce This likely outcome of increased
but not to worry, the government has
in 2012 the first piece of compulsory interest and desire for knowledge
decided that.
national pension saving the UK has will mean a much better form of
4
ever seen. If you’re wondering, your communication than an annual Compulsion won’t come from advice,
Future current National Saving Investment black-and-white statement of funds the Government has decided to
What’s the future for under management. What they’ll provide guidance.
financial services? contributions aren’t actually saved.
The Pensions Act is putting an end to want to know is, if they change the
Being online or digital
isn’t enough that ambiguity by setting up personal underlying investments, what could
What should financial
brands do?
5 A final word
12. Viewpoint / August 09 p.12
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics Help and guidance are on the way
The baby boomers With compulsion comes guidance and true consumer interest
Ethnic diversity
Increasing connectivity Legislation change 3: The exact nature of this service and gurus and personalities will likely lead
Free money guidance how it complements independent, to the likes of Martin Lewis, Alvin Hall
restricted or basic advice isn’t yet and Robert Peston being treated like
Money guidance is the free advice
clear, but it will ensure that everyone Rock’ n’ Roll Legends and filling
3
service that is being implemented
in the UK has access to at least concert halls [virtually] with screaming
to coincide with the launch of
Legislation basic levels of financial information hordes of silver-surfer fans.
the national pension plan or
RDR and guidance.
personal accounts.
The pensions Act 2008
While this service will most probably The service will help people with:
Free money guidance The service has been developed as
be launching in 2012 to give a flavour
a response to the earlier findings • budgeting their weekly or
of the volume of interest that could
of the Thoresen Review on Generic monthly spending;
develop, just look at the one million
Financial Advice. • saving and borrowing, and
4
or more mobile bank account enquires
insuring and protecting
The guidance service is expected during October 2008 when stock
Future themselves and their families;
to be a multichannel solution, markets tumbled. It’s just not clear
What’s the future for • retirement planning;
financial services? including face-to-face, web and how the Pensions Delivery Service
• understanding tax and welfare
Being online or digital telephone support. will cope with that volume of interest
isn’t enough
benefits;
in information.
Importantly, once we’ve put the funding • jargon-busting – explaining the
What should financial
brands do? issues to one side, this service should One way this increased desire for more technical language we use in the
have a major impact on increasing the and more financial information will financial services industry;
5
levels of financial literacy and play out will be the creation of big • importantly, money guidance is
A final word capabilities among the UK population. financial celebrities. This desire for also completely sales-free.
13. Viewpoint / August 09 p.13
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics
The baby boomers
Future
Ethnic diversity
Increasing connectivity
3 Legislation
RDR
The pensions Act 2008
Free money guidance
What’s the future for financial services?
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
With so many policies, trends, social
and economic changes all converging
at once, there will be plenty of
What I believe is that no one solution
will win out, in fact we’re not going
from business model A to business
brands do? interesting solutions to come. model B, we’re going from business
model A to business model A to Z.
5 A final word
14. Viewpoint / August 09 p.14
1
Introduction
Being online or digital isn’t enough
The future, it’s all about
the experience
The future of consumer
finance
Although financial services have been online for a long
time and internet banking has revolutionised the way
2
we manage our finances, today’s consumers still
Demographics
The baby boomers
expect more...
Ethnic diversity
Increasing connectivity
To infinity and beyond!
3 Legislation I’m a child of a certain generation, so Yet despite this rampant charge to the the industry as a whole is relatively
forgive me when I say ‘It’s broadband internet, they’ll still continue to crave slow at realising its true potential for
RDR
Jim, but not as we know it!’ The fact a personal relationship with their bank building stronger and more meaningful
The pensions Act 2008
is, putting the Digital Britain Report or financial services provider. experiences for their clients.
Free money guidance
to one side, the UK is on the cusp
There are other emerging technologies
of introducing superfast broadband
The UK’s first home online that will shape consumers expectations
services that will offer huge swathes
banking service was set up by the of the type and quality of service they
4
of the UK 50, 100 or 250 megabit per
Nottingham Building Society back want from financial companies, but as
Future second download speeds over the next
in 1983! a starter I have outlined a few in the
What’s the future for five years.
following pages.
financial services?
With this radical change to high-
Being online or digital
isn’t enough definition multiscreen and application What is noticeable is that although
What should financial connectivity, UK consumers will want banks and financial services
brands do? content that’s richer, smarter and companies are always among the
more dynamic than ever before. early adopters of new technology,
5 A final word
15. Viewpoint / August 09 p.15
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics Social technologies
The baby boomers
I’ve already written about connected By the way, Google’s OpenSocial has A wave is shared. Any participant can
Ethnic diversity
and social customers, but the a name: it’s called Wave and it’s here reply anywhere in the message, edit the
Increasing connectivity technology that’s allowing them now wave.google.com content and add participants at any
to connect is also changing. And just what is a wave? point in the process. Then playback
lets anyone rewind the wave to see
Google’s ‘OpenSocial’ programme is
3
who said what and when.
a new platform that will help build
Legislation social networking or documents into A wave is live. With live transmission
RDR the very fabric of the internet. as you type, participants on a wave
The pensions Act 2008 can have faster conversations, see
This will obviously give the power
Free money guidance edits and interact with extensions
of recommendation a real boost, as
in real-time.
consumers will no longer be restricted
in having to go where the But technology goes beyond the
4
conversations are, but simply follow current view of the internet, it
the conversations seamlessly from one includes other dynamic elements and
Future
network to another. Eventually this will A wave is equal parts conversation and will start to seamlessly integrate in to
What’s the future for
financial services? expand to include more than just the document. People can communicate our offline experience as well as just
Being online or digital single channel, and the written word and work together with richly formatted our online life.
isn’t enough and conversations will move from one text, photos, videos, maps, and more.
What should financial media to another!
brands do?
5 A final word
16. Viewpoint / August 09 p.16
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2
Smartphones enquiries in October 2008 alone more than 400 million members
Demographics as customers feeling the economic worldwide. This by size would
The baby boomers
You can’t walk down any high street
downturn, kept a watchful eye on make it the third most populated
in the UK without being bombarded
Ethnic diversity their money. country in the world, bigger than
by advertising for the latest iPhone
Increasing connectivity the US!
or HTC Hero. The rise in use of PDAs And continuing on this theme, a recent
and Smartphones means users are study by financial consultancy Celent The take-up and use of these
browsing on the go, and if they’re suggests 35% of online banking technologies by financial services
3
connected they can make payments households will be using mobile brands is slow, but ultimately it’s
Legislation at the point of sale or arrange banking by 2010 – that’s next year! inevitable, as consumers expect
finances remotely. financial services organisations to
RDR VoIP solutions
deliver communications using the
The pensions Act 2008 Now many believe that the size, scale
If your children are anything like mine media and technology that they’re
Free money guidance and importance of mobile systems are
they’ve been using VoIP protocols, like already using.
overestimated. However, by the end of
Windows Messenger, Windows Live or
2011 – that’s just 28 months away – Lots of financial marketers will say,
Skype for as long as they can
mobile contactless payments will ‘but I am digital. I’m online, look at
4
remember.
make up 10% of the contactless my banners, my MPUs’. But in today’s
Future payment market, and that’s before These technologies combine the power and tomorrow’s technological world,
What’s the future for
Barclaycard contactless really gets of text, voice, and video in real-time. being online isn’t enough.
financial services?
off the ground. They allow for instant messaging, file
Being online or digital What consumers expect is for you
isn’t enough transfer and video conferencing all
The change towards mobile banking to be there, wherever there is, and
What should financial over the same networks.
brands do? is already happening: Monilink, the connected is so integrated into future
UK mobile banking network, says it And to give you an idea of the scale consumer behaviour it is no longer
5
processed over one million account of the networks, Skype currently has an activity in its own right.
A final word
17. Viewpoint / August 09 p.17
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2
The low-down on the high street What does this mean for banks? products, but recent events have
Demographics thrown all that into question.
The baby boomers
Another trend on its way in the next Banks and financial services providers
few years is the change in the have already started to compare And it will increasingly become
Ethnic diversity
traditional high street and the way themselves with retailers rather than market share that makes the biggest
Increasing connectivity
we all shop. with other financial institutions. difference, as other brands start to
consider the limitations of white-
Soon we won’t distinguish between And they’ll have to continue to do
labelling and think about the benefits
internet shopping and shopping in so, as customers are happy to buy
3
of being regulated themselves.
the high street any more: there’ll just any commodity, be it toilet tissue
Legislation be shopping. or personal loans, from anyone who The key to this shift is customer
RDR offers a good rate or price, but more emotions. Other retailers and FMCG
Shopping in the high street will evolve
The pensions Act 2008 importantly offers a better and more brands have already exploited this
to include computers, touchscreens
Free money guidance enjoyable experience. territory, but financial services brands
and the internet, so that consumers
have found it difficult, as they’ve
can know straightaway the information It’s important to remember that
lacked the physical environment or
they want and the availability of items retailers aren’t new to this game,
experience needed to build brand
4
they need. The move will be facilitated retailers such as Tesco have already
empathy. But this will have to change.
Future by a network – and this network will been supplying financial products
What’s the future for be ubiquitous. So the use of any for more than a decade!
financial services? traditional physical retail space will
Historically, the argument has been
Being online or digital be dependent solely on what it adds
isn’t enough that other retailers didn’t have the
to the consumers’ experience and
What should financial banking expertise to offer financial
brands do? their desire for it.
5 A final word
18. Viewpoint / August 09 p.18
1
Introduction
The likely winner…
The future, it’s all about
the experience
The future of consumer
finance
2
So just where will all this change What they actually look like is difficult click here to visit mint.com
Demographics lead us. We believe that this new to say. We have however started to see
The baby boomers future will fall neatly into the hands a number of new quasi guided sales
Ethnic diversity of a new sales advice channel that solutions [that’s restricted sales in
Increasing connectivity will be in part restricted and the new RDR world] come to market,
independently advised. particularly in the US. Here are
some examples.
What’s not clear is who will be offering
3
it: banks, supermarkets or intermediary mint.com
Legislation firms, or indeed soft drinks companies. A free web-based personal financial
RDR What is clear is that in most instances management service created by
The pensions Act 2008 the web will be used as a distinct entrepreneur Aaron Patzer. It allows
Free money guidance communications and sales channel users to track financial transactions
in its own right; it will seamlessly such as bank, credit card, investment
mix distinct advice and recompense and loan balances through a simple
models for a mix of clients based single interface and then provides
4
upon relationship, need and value. account aggregation through a deal
Future with Yodlee.
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
brands do?
5 A final word
19. Viewpoint / August 09 p.19
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2
Wesabe click here to visit Wesabe
Demographics
The baby boomers
Similar to mint in that it offers a money
management tool. But it goes one step
Ethnic diversity
further by introducing the community
Increasing connectivity
element, to help consumers learn and
benefit from the actions and knowledge
of other members.
3 Legislation
RDR
The pensions Act 2008
Free money guidance
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
brands do?
5 A final word
20. Viewpoint / August 09 p.20
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2
lovemoney.com is the new offering click here to visit lovemoney.com
Demographics from the people at Motley Fool. It has
The baby boomers great content and savings ideas as
Ethnic diversity well as product aggregation. With a
Increasing connectivity little imagination you can picture it
with a Skype interface, some decision
trees, and all of a sudden you’ve got
the starting of mass intermediation
3
or an enriched sales advice channel.
Legislation
RDR
The pensions Act 2008
Free money guidance
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
brands do?
5 A final word
21. Viewpoint / August 09 p.21
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2
MoneySavingExpert.com click here to visit MoneySavingExpert.com
Demographics
The baby boomers
The most visited financial site in
the UK, and for that reason alone
Ethnic diversity
it is well worth a mention.
Increasing connectivity
However it doesn’t take too much hard
work or imagination to see how this site
could develop in the future. What about
3
this site expanding its current core
Legislation premise and becoming an all-inclusive
RDR advice environment, or the first
The pensions Act 2008 people-based ratings agency? Yes move
Free money guidance over S&P, the people are coming.
4 Future
What’s the future for
financial services?
Being online or digital
isn’t enough
What should financial
brands do?
5 A final word
22. Viewpoint / August 09 p.22
1
Introduction
What should financial brands do?
The future, it’s all about
the experience
The future of consumer
finance
Here are three things that we believe financial services
brands should start to do to ensure that they can
2
compete for the future of financial consumers.
Demographics
The baby boomers
1 Focus on being useful 2 3
Ethnic diversity
Find a voice and connect with Create an experience
Increasing connectivity
your audience Serious competitive advantage lies
Financial services brands need to
think beyond their core products to It’s not enough just being online. in making any customer feel better
ensure that they develop their brands Financial brands need to have in ways which don’t just relate to
3
as a utility. This will allow them to add opinions and add to the conversations actual product consumption. So by
Legislation value to customers. And it will free that consumers are having, and not sit concentrating on the customer
RDR customers from thinking about these on the sidelines. You need to experience first, then the message
The pensions Act 2008 brands as interested only in product demonstrate your beliefs and facilitate and finally product, financial brands
Free money guidance and profit. Think calculators, tools, the debates on risk and finance. This will be able to grab market share.
context case studies and education. way you’ll create a valued reason for This means a change in traditional
audiences to reference and find you. systems: offline communications
Currently so many big organisations, such as brochures and branches
4
especially financial ones, are silent will become a means of driving
Future in this conversation-driven world. They traffic online and creating desire,
What’s the future for need to create, have a view and voice as well as being a retail channel.
financial services?
it in a relevant and interesting way
Being online or digital
isn’t enough that distinct communities can use.
What should financial
brands do?
5 A final word
23. Viewpoint / August 09 p.23
1
Introduction
The future, it’s all about
the experience
The future of consumer
finance
2 Demographics
The baby boomers
A final word
Ethnic diversity
Increasing connectivity
3 Legislation
RDR
The pensions Act 2008
Free money guidance
Predicting the future of the financial The survival of Financial services brands We hope you enjoyed reading this. And
services industry isn’t a precise science. will depend upon their ability to adapt if you’ve any thoughts of your own you’d
4
However there are a number of to changing circumstances – and to like to add, please send them to us at
Future certainties that will definitely impact do that we need to start developing viewpoint@teamspirit.uk.com or call
What’s the future for us all, such as the Pensions Act, strategies now. David McCann on 020 7360 7878.
financial services?
RDR and the development and growth
Being online or digital
isn’t enough of networked consumers.
What should financial
brands do?
5 A final word