Capturing Uk Savings In 2010 Now Available At Reportsandreports

Dallas, TX: ReportsandReports announce Capturing UK Savings in 2010 Market Research Report in its Store.

Browse complete Report at http://www.reportsandreports.com/market-reports/capturing-uk-savings-in-2010/

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

This report highlights the attitudes and behaviours of UK savers against a global backdrop.

Primary data is used to analyse the saving behaviour of key consumer segments as they come out of the recession and into the recovery

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

It utilizes attitudinal consumer segmentation to provide strategies for providers looking to boost engagement with consumers in the savings market.

Primary data is used to profile key consumers in how their savings approaches differ

The report provides best practice examples of FS providers already effectively appealing to consumer attitudes towards saving.

Table Of contents

Overview 1

Catalyst 1

Summary 1

Methodology 1

Executive Summary 2

The UK saving market remains in flux 2

Consumers appear to be reverting to poor savings habits with significant portions of UK consumers currently failing to save 2

Affordability is the major driver behind a failure to save, for both account holders and those currently disengaged from the market 2

A minority of consumers have remembered the lessons they learned during the economic slowdown 2

The UK savings market must cater to a more savvy consumer than elsewhere 2

Consumers are interested in looking outside of the savings market but find themselves uncertain as to the specifics 2

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 2

Consumers are focusing on paying off expensive debt while the saving alternative remains unattractive 3

Five consumer segments have emerged during the recession 3

Diverse motivations are behind the different consumer segments acting together in ceasing to save 3

Rational consumers are more comfortable making active decisions concerning their finances 3

Table of Contents 4

Table of figures 5

Table of tables 6

Capturing Consumer Saving 7

Introduction 7

TREND: UK saving has historically been worse than the global average 7

Consumers appear to be reverting to previous poor savings habits 7

Savings institutions face a challenge to rekindle the fires of UK saving ambitions 8

The Uk Savings Market 9

The Recovery from Recession dataset provides in-depth insight into the UK savings terrain 9

TREND: Significant portions of UK consumers are currently not saving 9

INSIGHT: Affordability is the major driver behind a failure to save, for both account holders and those currently disengaged from the market 10

Affordability is a driving factor behind the stalling UK saving market 11

Three quarters of consumers without a savings account report that they are unable to afford to save 11

A worryingly large segment of consumers have no savings at all to fall back on 12

Reductions in real income plus high levels of unemployment make issues with affordability unsurprising 13

INSIGHT: A minority of consumers have remembered the lessons they learned during the economic slowdown 15

The global slowdown saw consumers begin to appreciate the importance of saving but income constraints have seen a return to poor savings levels 15

INSIGHT: The UK savings market must cater to a more savvy consumer than elsewhere 17

30% of consumers holding savings accounts are looking around to find the best rate 17

UK consumers are much more likely to switch their savings account than the global average 17

Damaged brands could expose the savings institutions to more switching behavior 17

INSIGHT: Some UK consumers are looking to utilize their money outside of the savings market 18

Nearly one in five UK consumers are looking for alternatives to the saving market 18

Consumers remain confused as to what alternatives there are to saving accounts 21

Poor general financial awareness is reflected through a very inaccurate estimation of national interest rates 22

Consumers will soon have a source of free financial advice to consult before comparing savings offerings 23

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 24

UK savers were shaken following high-profile bank defaults 24

UK consumers are dubious over the security of government-backed savings 24

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 26

Consumers are focusing on paying off expensive debt while the saving alternative remains unattractive 27

The UK emerges from the recession with a weighty debt burden 27

Consumer Segmentation 29

Five consumer segments have emerged during the recession and remained present throughout the recovery 29

The segments 29

The segments vary in size, from 13% of consumers to 30% 30

The consumer segments have been fairly static throughout the recession through to the recovery 31

INSIGHT: Diverse motivations are behind the different consumer segments acting together in ceasing to save 32

The confused and panicked segments have abandoned accumulating savings 32

The confused segment's inability to save is driven by issues of affordability 33

An above-average number of rational consumers have stopped adding to their savings accounts 35

Instead of being constrained by affordability, rational consumers are paying off expensive debt rather than seeking the paltry market saving return 35

Rational consumers are more comfortable making active decisions concerning their finances 36

Rational consumers are more likely to exhibit switching behavior than consumers in other segments 36

Hedonists are also more likely to switch their accounts but amount to only 15% of switching consumers 37

Emotional and panicked consumers are much less likely to exhibit switching behavior 37

Action Points 39

Balanced positioning: savings institutions need to effectively target their services if they wish to maintain a stable deposit base 39

The financial services Megatrends framework can be used to target these customer segments 39

Messages that appeal to the Megatrend of Individualism will appeal to the rational consumer 40

ACTION POINT: Product innovation to incorporate debt repayment with savings opportunities may attract the rational consumer 40

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 41

Rational consumers may be more willing to lock away their money given fewer issues with affordability and a pragmatic outlook 42

A broader savings strategy that allows consumers to utilize a number of products with different time horizons may appeal strongly to the rational consumer 42

Messages that appeal to the Megatrend of Convenience will appeal to hedonistic consumers 42

ACTION POINT: Convenience and flexibility of withdrawals will greatly appeal to this pleasure-seeking consumer segment 42

ACTION POINT: Goal-based advertising focusing on the product of saving will help keep the hedonistic consumer focused on the value of saving 43

Messages that appeal to the Megatrends of Comfort and Connectivity will attract the emotional consumer 44

ACTION POINT: Comfort, Connectivity and Authenticity are vastly important for providing reassurance to this concerned but valuable consumer group 44

Banks need to anticipate consumers' concerns given their emotional situation, and facilitate a closer, more meaningful relationship with consumers 44

Messages that appeal to the Megatrend of Authenticity will reassure panicked consumers 45

ACTION POINT: Savings providers need to focus the information they deliver on being clear and straight to the point 45

Going forward into the recovery and beyond 46

APPENDIX 47

Methodology 47

The financial services Megatrends framework 48

Datamonitor has identified 10 Megatrends in consumer behavior 48

Megatrends are a tool for capturing the drivers of consumer behavior 48

A Megatrend framework is a vital tool for analyzing and structuring consumer attitudes and behaviors 48

A trend framework is used for generating and selecting ideas 48

A Megatrend framework is vital for financial services 49

Customer retention as well as customer acquisition must be considered 49

There are inherent obstacles in financial services that limit innovation in customer targeting 49

Greater customer understanding can help to overcome the obstacles found in targeting and communicating to customers 49

The Megatrend framework enhances an analysis of the deposit market 50

There are 10 Megatrends that impact on the actions and attitudes of financial services customers 50

The six behavior trends identify the benefits that consumers wish to gain from a product or service 51

The four complexities are areas within which traditional assumptions or measures of behavior no longer apply 52

Further reading 54

Ask the analyst 54

Datamonitor consulting 54

List of Tables

Table 1: Consumers are making the rational choice prioritizing expensive debt over low interest savings 28

List of Figures

Figure 1: The global economic crisis drove a step change in household saving behavior in the UK 8

Figure 2: 17% of UK consumers lack a savings account 10

Figure 3: A third of UK savings account holders can no longer afford to save 11

Figure 4: Issues with affordability peaked in the summer of 2009 12

Figure 5: 74% of those consumers without accounts have issues with affordability 13

Figure 6: The UK is tentatively emerging from the recession but unemployment remains at a 10-year peak 14

Figure 7: The global slowdown forced consumers to reassess their saving positions 16

Figure 8: UK consumers are more likely to display switching behavior driven by a more focused urge to find the best rate 18

Figure 9: 17% of savers are looking for alternatives to savings 19

Figure 10: Consumer interest groups are complaining about the lack of reward for saving 19

Figure 11: Slim pickings in bank savings accounts encourage savers to consider elsewhere 20

Figure 12: Attractive gains in the equity markets make alternatives to the traditional savings channel look worthy of consideration 21

Figure 13: Few consumers are certain as to what is the best step outside of the savings arena 22

Figure 14: Consumers are grossly uninformed when it comes to general financial knowledge 23

Figure 15: Neither savers nor non-savers are convinced by government-backed savings 25

Figure 16: The financial stability of the organization is the most important consideration before making a financial purchase 26

Figure 17: Significant proportions of savers and non-savers are focusing on repaying debt obligations 28

Figure 18: The behavioral segmentation model contains five clearly defined consumer segments 29

Figure 19: Rational consumers are the largest segment at 30% compared to the smallest segments at 13% 31

Figure 20: Consumer segmentation has remained robust throughout the recession and into the recovery 32

Figure 21: Confused and panicked consumers are the most likely to have ceased adding to accounts 33

Figure 22: Confused and panicked consumers, both those with and without accounts, have major issues with affordability 34

Figure 23: Rational consumers are much more likely to be focusing on debt rather than saving 36

Figure 24: Rational consumers and hedonistic consumers are more likely to switch their saving accounts 38

Figure 25: MortgageOne in Malaysia offers an example of how to combine debt and saving schemes for net benefits 41

Figure 26: Highlighting the goal of savings will help to entice the consumption-driven hedonistic consumer segment 43

Figure 27: Virgin Money is approaching the market with simplicity as a central part of its offering 46

Browse all Banking and Financial Services Market Research Reports

Browse all Datamonitor Market Research Reports

Browse all Newly Published Market Research Reports

Related Reports:

Life-based Savings Within the UK Savings Landscape

The UK Used Car Trade Flow 2010

UK Commercial Insurance Distribution 2010

About Us:

Reports and Reports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.

Contact:

Ms. Sunita

7557 Rambler road,

Suite 727, Dallas, TX 75231

Tel: +1-888-989-8004

Website: http://www.reportsandreports.com/

Blog: http://reportsnreports.wordpress.com/

Blog: http://reportsandreports.blogspot.com/

by: Ms.Sunita

POST COMMENT

The Importance Of Choosing The Very Best Sacramento Locksmith Troubleshooting Pc Problems By Using Remote Technical Support Lsas.Blaster.Keylogger Trojan infection -How to prevent and remove Lsas.Blaster.Keylogger Trojan effectively? An Outline About Different Welding Tools And Concepts Blaster.Keyloger infection -How to prevent and remove Blaster.Keyloger effectively? Benefits Of Cheap Directory Submission Solutions For Plastic Bag Problems Cures For Condensation The Tricks of Availing Cheap International Air Tickets Ganar Dinero Desde Casa Con Encuestas - Como Ganar Más Dinero Contestando Preguntas Simples How To Treat Age Spots Joyal High Efficient Raymond Mill Basic FHA Appraisal Guidelines