Brand values in UK personal lending

• Analyzes the most up-to-date advertising statistics determining how the industry is responding to the downturn.
• Sizes the personal loan market by gross advances, balances outstanding and competitive environment.
• Uses Datamonitor's Consumer Megatrends Framework to assess customer needs during this uncertain era.
• Discusses ways to improve bank brands within the personal loan market.

• Benchmark personal loan advertising expenditure against other product lines against major lenders and brokers across the industry.
• Relevant and topical analysis to how you can improve brand reputation during the global downturn.
• Provides the reader with a comprehensive consumer framework identifying the key attitudes and behaviors of recessionary consumers.

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

The downturn has placed an emphasis on reducing advertising expenditure

The credit crunch has severely affected the personal loan market

Global brand strengths have fallen significantly in light of the worsening financial situation

A combination of changing market dynamics and lower liquidity levels have forced personal loan advertising expenditure downwards

In line with the weakened personal loan market, advertising has fallen across the board

The top 10 personal loan advertisers have cut their total expenditure by 69%

Lenders have been more affected in the secured market.

Only a relatively small number of lenders have exited the unsecured market

The secured market is characterized by only a handful of lenders

Innovative customer targeting will reap significant rewards despite the bleak outlook

To drive brand values at minimal costs banks need to appeal to consumers' recessionary mindsets

Following Datamonitor's Megatrends framework is vital for improving brand values

Targeting and promoting self-service products will appeal to the Financial Intelligence Complexity

Consumers demand greater control over their financial future

Effective advertising should focus on safety and functionality to lessen consumer worries

Personal loan campaigns should emphasize how credit can improve the short term position of a borrower

Services and products need to satisfy the Authenticity Megatrend

Despite these examples, few banks satisfy the Authenticity Megatrend

Adopting a more friendly advisory and assistance based approach to customers develops better customer relationships

Working with NGOs and charities will help improve reputation and trust

Marketing innovative loans for customers in difficulties will enhance a bank's reputation

A more personalized approach to product offerings is a win-win for banks

APPENDIX

Supplementary data

Definitions

Balances outstanding

CMGR

Gross advances

Secured personal loans

Unsecured personal loans

Methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: The top 10 global brand values, 2008

Table 2: The top 10 personal loan advertisers, 2007-08

Table 3: Personal loan gross advances and balances outstanding, January 2007-September 2008

Table 4: Total UK advertising expenditure by product line, 2004-08

Table 5: Total UK advertising expenditure in 2008, H1 2008-H2 2008

List of Figures

Figure 1: Unsecured personal loan advances have been falling while balances outstanding have grown, January 2007-September 2008

Figure 2: Total financial services advertising expenditure fell by 15.8% in 2008, 2004-08

Figure 3: Total advertising dropped by 22.4% throughout the second half of 2008

Figure 4: Recessionary consumers' behavior is affected by a number of basic drivers and inhibitors

Figure 5: Bank of Scotland's website provide a comprehensive source of information for borrowers, 2009

Figure 6: Online price comparison sites and banks are the most trusted financial institutions, 2008

Figure 7: First Direct's 'Enthuse' service explains products pure and simple, 2009

Figure 8: Virgin Money's homepage illustrates how the bank can help simplify financial services, 2009