Aggregation Metrics: Consumer Attitudes towards Online Aggregation and Broking of Financial Services in the UK

Published Date: September 2008 Published By: Finaccord Ltd. Page Count: 80 Order Code: R3434-147 $1,990.00   Online Download   Questions About This Report E-mail a Colleague Printable Page Fax Your Order Description Table of Contents Search Inside this Report Similar Products 0.0 EXECUTIVE SUMMARY UK consumers are willing to research or acquire financial services online, especially insurance… …with high levels of usage across demographic segments Nearly a quarter of consumers use seven or more websites when researching insurance online The Internet is now the main distribution interface for personal loans, motor and home insurance… … taking sales away from direct insurers and banks Switchers out-number new customers for mortgages, motor and household insurance Aggregators’ and brokers’ websites are as well-recognised as direct providers … although many consumers appreciate that aggregators and brokers offer something different… 1.0 INTRODUCTION Finaccord European consumer research Aggregation European market, partnership and bancassurance research Research rationale Online aggregation is having a major impact on financial services distribution Interest in online aggregation is not limited to traditional providers of consumer financial services The growth and influence of Confused.com and Moneysupermarket.com are beyond dispute… … although the UK now endures a surplus of competitors in online aggregation and broking Heavy spending on advertising has helped the industry leaders to stay ahead of the pack The Aggregation Metrics research has been structured to test the appetite of consumers in Europe 2.0 SURVEY ANALYSIS Introduction Consumer propensity to purchase via the Internet More than three quarters of consumers in the UK have bought books or music online… …and a majority have bought insurance via the Internet Wide potential for online marketing and partnership programmes, especially in travel and utilities Propensity to research and take out financial products over the Internet Banking products Most consumers use the Internet in one way or another when buying banking products Longevity of Internet usage and household income affect propensity to buy banking products online .. 18 Insurance products Two thirds of UK consumers use the Internet to research and / or buy insurance The demographic trends for online insurance are similar to those for online banking Comparison with European average Number of websites visited prior to taking out financial products online Banking products Online customers are most likely to solicit details for banking products on three occasions… Insurance products …while nearly a quarter of consumers search seven or more sites for insurance Mortgages Switching rates and brand new loans Analysis of distribution interfaces used Telephone sales outstrip the Internet for mortgage distribution Analysis of distribution channels used Mortgage aggregators and brokers overtook direct lenders as a distribution channel during 2007 Personal loans Switching rates and brand new loans Analysis of distribution interfaces used Use of the Internet is growing at the expense of face-to-face and telephone transactions… Analysis of distribution channels used … but this has had little impact on the patterns for the actual distribution channels Comparison of distribution channels used by offline and online customers Loan aggregator / brokers and supermarkets both gain from the trend in favour of online distribution .. 39 Motor insurance Switching rates and brand new sales Analysis of distribution interfaces used The Internet is now the dominant distribution interface for motor insurance in the UK… Analysis of distribution channels used … and has helped insurance aggregators and brokers to gain market share rapidly Comparison of distribution channels used by offline and online customers Insurance aggregators and brokers are dominant among online customers Household insurance Switching rates and brand new sales Analysis of distribution interfaces used Internet sales have risen at the expense of both the telephone and postal interfaces… Analysis of distribution channels used … although this shift has affected distribution channels less than observed for motor insurance Comparison of distribution channels used by offline and online customers Banks fail to compete in the online market for household insurance but are strong offline Summary of market attractiveness for online aggregators and brokers Motor insurance is unquestionably the star product for online aggregation and broking in the UK Switching increases the market available for aggregators and brokers Switchers outnumber new customers for all products except personal loans Online aggregators and brokers of financial services Recognition rates More than 90% of consumers know the leading brands of aggregators and direct providers Consumer understanding of aggregation and broking concepts Brokers of financial services UK consumers display a high level of understanding of the role of brokers of financial services… Aggregators of financial services … but have a hazier idea of the exact definition and role of aggregators 3.0 APPENDIX Research sample The research embraces a total of 1,005 respondents in the UK Research questionnaire GRAPHICS / TABLES Consumer propensity to purchase assorted goods and services via the Internet in the UK, 2008 Comparison of consumer propensity to purchase assorted goods and services via the Internet in the UK, 2008 (data) Consumer propensity to purchase assorted goods and services via the Internet in the UK, all respondents and financial services online customers, 2008 Consumer propensity to research and take out banking products over the Internet in the UK, 2008 Consumer propensity to research and take out banking products over the Internet in the UK, 2008: segmentation by gender, age group, household income and longevity of Internet usage (data) Consumer propensity to research and take out insurance products over the Internet in the UK, 2008 .. 20 Consumer propensity to research and take out insurance products over the Internet in the UK, 2008: segmentation by gender, age group, household income and longevity of Internet usage (data) Use of the Internet to research and buy financial services in the UK and Europe, 2008 Number of websites visited by consumers in the UK prior to taking out banking products over the Internet, 2008 Number of websites visited by consumers in the UK prior to taking out insurance over the Internet, 2008 % of consumers in the UK switching provider or acquiring mortgages for the first time, 2007 Analysis of distribution interfaces used by consumers in the UK for acquiring mortgages, 2007 and all previous periods Analysis of distribution interfaces used by consumers in the UK for acquiring mortgages, 2007 and all previous periods (data) Analysis of distribution channels used by consumers in the UK for acquiring mortgages, 2007 and all previous periods Analysis of distribution channels used by consumers in the UK for acquiring mortgages, 2007 and all previous periods (data) % of consumers in the UK switching provider or acquiring personal loans for the first time, 2007 Analysis of distribution interfaces used by consumers in the UK for acquiring personal loans, 2007 and all previous periods Analysis of distribution interfaces used by consumers in the UK for acquiring personal loans, 2007 and all previous periods (data) Analysis of distribution channels used by consumers in the UK for acquiring personal loans, 2007 and all previous periods Analysis of distribution channels used by consumers in the UK for acquiring personal loans, 2007 and all previous periods (data) Comparison of distribution channels used by consumers in the UK for acquiring personal loans offline and online, 2007 Comparison of distribution channels used by consumers in the UK for acquiring personal loans offline and online, 2007 (data) % of consumers in the UK switching provider or acquiring motor insurance for the first time, 2007 Analysis of distribution interfaces used by consumers in the UK for acquiring motor insurance, 2007 and all previous periods Analysis of distribution interfaces used by consumers in the UK for acquiring motor insurance, 2007 and all previous periods (data) Analysis of distribution channels used by consumers in the UK for acquiring motor insurance, 2007 and all previous periods Analysis of distribution channels used by consumers in the UK for acquiring motor insurance, 2007 and all previous periods (data) Comparison of distribution channels used by consumers in the UK for acquiring motor insurance offline and online, 2007 Comparison of distribution channels used by consumers in the UK for acquiring motor insurance offline and online, 2007 (data) % of consumers in the UK switching provider or acquiring household insurance for the first time, 2007 ... Analysis of distribution interfaces used by consumers in the UK for acquiring household insurance, 2007 and all previous periods Analysis of distribution interfaces used by consumers in the UK for acquiring household insurance, 2007 and all previous periods (data) Analysis of distribution channels used by consumers in the UK for acquiring household insurance, 2007 and all previous periods Analysis of distribution channels used by consumers in the UK for acquiring household insurance, 2007 and all previous periods (data) Comparison of distribution channels used by consumers in the UK for acquiring household insurance offline and online, 2007 Comparison of distribution channels used by consumers in the UK for acquiring household insurance offline and online, 2007 (data) Attractiveness of markets for online aggregators and brokers in the UK: sales in 2007 and all previous periods Attractiveness of markets for online aggregators and brokers in the UK: sales in 2007 and all previous periods (data) Comparison of churn rates and new customers for selected financial services in the UK, 2007 (data) . 65 Consumer recognition rates for online aggregators, brokers and other providers of Internet financial services in the UK, 2008 Consumer recognition rates for online aggregators, brokers and other providers of Internet financial services in the UK, 2008 (data) Consumer understanding in the UK of the difference between brokers of financial services and the financial institutions themselves, 2008 Consumer understanding in the UK of the difference between aggregators of financial services and brokers of financial services, 2008 Sample breakdown in the UK by age group, household income band and geographical location Similar Products • 2008 Mobile Banking Security Standards: Three-Part Strategy Will Increase Consumer Adoption While Protecting Banks’ Assets Published Dec 2008 by Javelin Strategy & Research • India's Mobile Banking Regulations Prioritize Responsible Growth Published Nov 2008 by IDC • 2009 Top 10 Business Drivers, Strategic Responses, and IT Initiatives in Global Payments Published Nov 2008 by TowerGroup • 2008 Online Banking and Bill Payment Forecast: Financial Crisis Makes It More Vital Than Ever to Target Online Channel Published Nov 2008 by Javelin Strategy & Research • Online Retail Payments Forecast Market Factors Square Credit Cards Against Alternatives—Both Bank and Non-Network Published Nov 2008 by Javelin Strategy & Research • Web Aggregrators - UK Published Nov 2008 by Mintel International Group Ltd. • Mobile Banking and Payments, September 2008: Leaders, Laggards, and New Trends Published Oct 2008 by TowerGroup • Security Flaws in Online Banking - Fact or Fiction? 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