subject: The Impact Of Income On Consumer Trends In Financial Services [print this page] Introduction Introduction
In the recovering Financial Services marketplace new and existing providers are competing to grow their share of an increasingly wary and cynical customer base. Datamonitor has identified ten consumer trends that provide a vital tool for providers wanting to succeed. FS providers need to construct tailored products to meet the unique demands of consumers with different incomes.
Features and benefits
Actionable strategies for providers of a range of financial services products will help boost customer retention and increase revenue.
A global scope, with regional and country level analysis, allows for trend tracking across markets.
Highlights
Higher income consumers are looking for transparency from their FS providers; they demand to be made aware of all the details and ramifications of a product but do not want to be confused by an array of jargon and small print
Lower income consumers are more likely to have lost faith in the security and abilities of the FS community
The highest income band will be particularly receptive to ethical investment opportunities as there is little to no sacrifice in performance, which can be a deal breaker for the demanding affluent consumer.
Your key questions answered
Understand the underlying trends in income and expenditure occurring across the major economies worldwide
Discover acquisition opportunities through insight into the role of income in product holding across the major FS markets
Understand how to construct tailored product propositions attuned to different income levels
Table of Contents :
Overview 1
Catalyst 1
Summary 1
Methodology 1
Executive Summary 2
The financial services landscape has changed post-downturn 2
INSIGHT: Higher income consumers have a more sophisticated financial shopping basket 3
TREND: Higher income consumers are more trusting of their financial services provider but also more demanding 3
TREND: Consumers demands and expectations of their FS provider increase with income 3
TREND: General themes consumers look for in an FS provider are broadly similar despite differences in wealth 4
INSIGHT: Income is a dividing factor on comfort and ethicality 4
INSIGHT: Wealthier consumers remain unconvinced by premium banking facilities 4
INSIGHT: Value remains is king, particularly for higher income consumers 4
TREND: The global economic downturn changed views about conspicuous consumption 4
Action points 4
INTRODUCTION: THE IMPORTANCE OF TREND-TRACKING TO FINANCIAL SERVICES 12
The post-recessionary financial services market presents new challenges for the industry 12
Datamonitor is committed to creating a holistic view of the consumer 13
Tracking consumer mega-trends is fundamental to long-term success 14
A trend hierachy 20
The megatrends have different levels of importance for consumers across the globe 20
THE FUTURE DECODED 21
MEGA-TREND SYNOPSIS: Wealth Complexity 21
INSIGHT: Higher income consumers have a more sophisticated financial shopping basket 21
TREND: Higher income consumers are more trusting of their financial services provider but also more demanding 35
TREND: Consumers demands and expectations of their FS provider increase with income 39
TREND: General themes consumers look for in an FS provider are broadly similar despite differences in wealth 45
INSIGHT: Income is a dividing factor on comfort and ethicality 45
INSIGHT: Wealthier consumers remain unconvinced by premium banking facilities 57
INSIGHT: Value remains is king, particularly for higher income consumers 60
TREND: The global economic downturn changed views about conspicuous consumption 63
Action points 68
ACTION POINT: FS institutions must rebuild low income consumers trust in their providers 68
ACTION POINT: Pension funds looking to attract higher income consumers should look to improve their ESG credentials, particularly those looking to the BRIC 69
ACTION POINT: Banks must ensure that they have a honed premium banking offering to entice the affluent consumers currently sitting on the fence 72
FS institutions vary in their provision of current accounts targeted at the affluent 72
ACTION POINT: Insurers must return to their initial offering to entice low income consumers: peace of mind 76
