Dallas, TX: ReportsandReports announce it will carry Capturing UK Savings in 2010 Market Research Report in its Store. Browse complete Capturing UK Savings in 2010 Report Introduction The status quo of the UK savings market was irrevocably altered by the global financial crisis. Some consumers are now emerging from the recession with new awareness, drive and curiosity about saving. However, confusion and mistrust remain a hangover which must be dealt with, and income constraints and debt repayment are limiting savers’ ambitions. Scope Highlights Rational consumers are currently focusing on debt repayment rather than looking for interest in the savings markets. However, there could be opportunities to combine the two initiatives if FS institutions are innovative in their product design. Affordability is hugely influential in determining how likely consumers are to be savings account holders: 74% of consumers currently without savings accounts claim that they are unable to hold money back from day-to-day activities in order to save. The higher propensity to seek competitive rates within the UK market has translated into more UK consumers having switched their savings account provider, or intending do so, than the global average Reasons to Purchase Table of Content Overview Catalyst Summary Methodology Executive Summary The UK saving market remains in flux Consumers appear to be reverting to poor savings habits with significant portions of UK consumers currently failing to save Affordability is the major driver behind a failure to save,for both account holders and those currently disengaged from the market A minority of consumers have remembered the lessons they learned during the economic slowdown The UK savings market must cater to a more savvy consumer than elsewhere Consumers are interested in looking outside of the savings market but find themselves uncertain as to the specifics Consumers retain an appreciation for the financial stability of their savings institutions but the low-return environment has meant that any differences in rate are significant Consumers are focusing on paying off expensive debt while the saving alternative remains unattractive Five consumer segments have emerged during the recession Diverse motivations are behind the different consumer segments acting together in ceasing to save Rational consumers are more comfortable making active decisions concerning their finances Table of Contents Table of figures Table of tables Capturing Consumer Saving Introduction TREND: UK saving has historically been worse than the global average Consumers appear to be reverting to previous poor savings habits Savings institutions face a challenge to rekindle the fires of UK saving ambitions The Uk Savings Market The Recovery from Recession dataset provides in-depth insight into the UK savings terrain TREND: Significant portions of UK consumers are currently not saving INSIGHT: Affordability is the major driver behind a failure to save,for both account holders and those currently disengaged from the market Affordability is a driving factor behind the stalling UK saving market Three quarters of consumers without a savings account report that they are unable to afford to save A worryingly large segment of consumers have no savings at all to fall back on Reductions in real income plus high levels of unemployment make issues with affordability unsurprising INSIGHT: A minority of consumers have remembered the lessons they learned during the economic slowdown The global slowdown saw consumers begin to appreciate the importance of saving but income constraints have seen a return to poor savings levels INSIGHT: The UK savings market must cater to a more savvy consumer than elsewhere 30% of consumers holding savings accounts are looking around to find the best rate UK consumers are much more likely to switch their savings account than the global average Damaged brands could expose the savings institutions to more switching behavior INSIGHT: Some UK consumers are looking to utilize their money outside of the savings market Nearly one in five UK consumers are looking for alternatives to the saving market Consumers remain confused as to what alternatives there are to saving accounts Poor general financial awareness is reflected through a very inaccurate estimation of national interest rates Consumers will soon have a source of free financial advice to consult before comparing savings offerings INSIGHT: Consumers retain an appreciation for the financial stability of their savings institutions but the low-return environment has meant that any differences in rate are significant UK savers were shaken following high-profile bank defaults UK consumers are dubious over the security of government-backed savings The financial market has stabilized but the wider ramifications on consumer incomes may be placing rate of return back at the forefront of consumer decision-making Consumers are focusing on paying off expensive debt while the saving alternative remains unattractive The UK emerges from the recession with a weighty debt burden Consumer Segmentation Five consumer segments have emerged during the recession and remained present throughout the recovery The segments The segments vary in size,from 13% of consumers to 30% The consumer segments have been fairly static throughout the recession through to the recovery INSIGHT: Diverse motivations are behind the different consumer segments acting together in ceasing to save The confused and panicked segments have abandoned accumulating savings The confused segment’s inability to save is driven by issues of affordability An above-average number of rational consumers have stopped adding to their savings accounts Instead of being constrained by affordability,rational consumers are paying off expensive debt rather than seeking the paltry market saving return Rational consumers are more comfortable making active decisions concerning their finances Rational consumers are more likely to exhibit switching behavior than consumers in other segments Hedonists are also more likely to switch their accounts but amount to only 15% of switching consumers Emotional and panicked consumers are much less likely to exhibit switching behavior Action Points Balanced positioning: savings institutions need to effectively target their services if they wish to maintain a stable deposit base The financial services Megatrends framework can be used to target these customer segments Messages that appeal to the Megatrend of Individualism will appeal to the rational consumer ACTION POINT: Product innovation to incorporate debt repayment with savings opportunities may attract the rational consumer ACTION POINT: Rational consumers like to be in close control of their finances and should be approached with solutions that increase how they effectively manage their money Rational consumers may be more willing to lock away their money given fewer issues with affordability and a pragmatic outlook A broader savings strategy that allows consumers to utilize a number of products with different time horizons may appeal strongly to the rational consumer Messages that appeal to the Megatrend of Convenience will appeal to hedonistic consumers ACTION POINT: Convenience and flexibility of withdrawals will greatly appeal to this pleasure-seeking consumer segment ACTION POINT: Goal-based advertising focusing on the product of saving will help keep the hedonistic consumer focused on the value of saving Messages that appeal to the Megatrends of Comfort and Connectivity will attract the emotional consumer ACTION POINT: Comfort,Connectivity and Authenticity are vastly important for providing reassurance to this concerned but valuable consumer group Banks need to anticipate consumers’ concerns given their emotional situation,and facilitate a closer,more meaningful relationship with consumers Messages that appeal to the Megatrend of Authenticity will reassure panicked consumers ACTION POINT: Savings providers need to focus the information they deliver on being clear and straight to the point Going forward into the recovery and beyond APPENDIX Methodology The financial services Megatrends framework Datamonitor has identified 10 Megatrends in consumer behavior Megatrends are a tool for capturing the drivers of consumer behavior A Megatrend framework is a vital tool for analyzing and structuring consumer attitudes and behaviors A trend framework is used for generating and selecting ideas A Megatrend framework is vital for financial services Customer retention as well as customer acquisition must be considered There are inherent obstacles in financial services that limit innovation in customer targeting Greater customer understanding can help to overcome the obstacles found in targeting and communicating to customers The Megatrend framework enhances an analysis of the deposit market There are 10 Megatrends that impact on the actions and attitudes of financial services customers The six behavior trends identify the benefits that consumers wish to gain from a product or service The four complexities are areas within which traditional assumptions or measures of behavior no longer apply Further reading Ask the analyst Datamonitor consulting Browse complete Capturing UK Savings in 2010 Report Browse all Banking and Financial Services Market Research Reports Browse all Datamonitor Market Research Reports RSS Browse all Latest Report Related Reports: Life-based Savings Within the UK Savings Landscape The UK Used Car Trade Flow 2010 UK Commercial Insurance Distribution 2010 About Us: Contact:
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