英国の金融市場における売上停滞商品の分析

Abstract

This report aims to provide analysis and assessment of the key issues that are likely to determine why some products might not be selling in large volumes, and consider what opportunities there may be to increase sales of these products.

In order to gain a greater appreciation of the principal themes and issues relating to this subject, consumer research was commissioned through NOP exclusively for use in this report. This focused upon a number of salient issues that might aid our understanding of why some products do not sell.

For instance, it sought to gauge whether limitations in the financial services product range could be a problem or whether a lack of financial capability across the consumer base might be hindering sales. In addition, it aimed to uncover any opportunities that financial providers might be able to exploit by gauging the potential level of demand for a number of product propositions and considering what factors are most likely to persuade consumers to arrange a broader portfolio of products.

Table of Contents

• Introduction and Abbreviations
• Aims of the report
• Abbreviations
• Executive Summary
• A number of factors are thought to be constraining financial productsales
• Several products are only held by a small minority of adults
• More than a third of consumers have regretted making a financialpurchase
• Around 13 million consumers are not satisfied with the product range
• More than four in ten consumers are switched off by financialmatters
• A third of consumers would buy more products if they understood them
• Some products appear to have the scope to significantly increasesales
• Lack of money is perceived as the key deterrent to financialparticipation
• Market Background
• Social and medical advancements are boosting life-expectancy levels
  • Figure 1: Expectation of life at birth, bygender, 1900-2050
• The ageing population profile will impact on demand for financialservices
  • Figure 2: UK population, by age bracket,1995-2025
• Erosion of state support is raising the need for self-provision
• Changing household patterns are affecting the financial servicesmarket
  • Figure 3: Household composition, 1979-2002
• Labour market trends will also influence financial services demand
  • Figure 4: Summary of the UK labour market,1995-2005
• Low nominal interest rates have also affected the financiallandscape
  • Figure 5: Bank of England base rate, endof quarter, 1973-2005
• The Environment for Financial Products
• Consumer apathy is felt to be constraining financial product sales
• Product complexity is also believed to be acting as a deterrent
• This problem is exacerbated by relatively low levels of financialcapability
• Many financial services products require a high degree of advice
• Inadequacies in the provision of financial advice have hamperedsales
• Policymakers are taking steps to provide wider access to basicadvice
• Mis-selling scandals have hit sales of some financial products
• The financial services industry needs to improve its tarnished image
• The stockmarket slump has hit demand for investment products
  • Figure 6: FTSE 100 Index, end of month,1994-2005
• Recovery in share prices could stimulate demand in the next fewyears
• Wealth is concentrated among a small proportion of the population
  • Figure 7: Concentration of wealth amongthe UK adult population, 1976-2002
• Tax incentives have tended to be confusing and poorly targeted
• Means-tested benefits are also believed to be acting as a deterrent
• Financial providers may not be getting their marketing messageacross
• The financial services industry suffers with the problem ofintangibility
• Product complexity also presents a potential barrier to effectivemarketing
• There may also be problems associated with the products themselves
• Insurance Products
• Individual PMI sales have stagnated over the course of the lastdecade
  • Figure 8: PMI subscriptions, by companyand individual purchase, 1994-2005
• Escalating premiums have been a key factor behind the decline insales
• Improvements in the NHS have also had an impact on growth prospects
• Partnership with the NHS could provide opportunities for PMIproviders
• The ageing population could also create further opportunities
• New sales of income protection policies are on a downward trend
  • Figure 9: New sales of individual incomeprotection policies, by volume and value, 2000-05
• A fall in mortgage-related business partly explains the decline insales
• However, other factors have also hit the income protection market
• State benefit amendments could kick-start interest in this sector
• Clearer policy details may also boost income protection sales
• Negative publicity for payment protection could provide a furtherboost
• Product development could also increase the appeal of incomeprotection
• Extended warranty sales have fallen in recent years
  • Figure 10: Estimate of new extendedwarranty sales, 2000-04
• A reduction in expenditure on domestic electrical goods has hitsales
• The market has also been hindered by a particularly poor image
• Extended warranty providers need to regain consumers' faith
• Banking and Lending Products
• The last few years have seen a big shift away from endowmentmortgages
  • Figure 11: Mortgage repayment method, allloans, 1999 and 2004
• The poor performance of endowment policies has hit this market
• Mis-selling claims and negative publicity have exacerbated theproblem
• The suitability of endowment-linked mortgages has been questioned
• Offset mortgages have so far failed to stimulate significant demand
• The perceived complexity of these products is inhibiting growth
• Further penetration of the ABC1 segment offers some growth prospects
• The account aggregation market has so far largely failed to take off
• Security concerns remain an issue for some potential users
• Continued growth in online banking should provide a boost to thissector
  • Figure 12: Personal bank accountsaccessible by telephone and via the Internet (MBBG only), 1999-2004
• The arrival of a mainstream player could drive the market forward
• Saving and Retirement Planning Products
• The need for people to save for their pensions has never beengreater
• Stakeholder pensions were introduced to close the savings gap...
• ...but they have so far failed to stimulate pensions demand
  • Figure 13: Stakeholder pension sales,2001-05
• The pensions message is somehow failing to get through
• Raising awareness levels is therefore a key priority
• The state may also need to offer greater incentives to encouragesavings
• Workplace access to stakeholder pensions would not appear to beenough
• Could the supermarkets come to the rescue?
• The Child Trust Fund is another government initiative to boostsavings
• There are a wide range of accounts for parents to choose from
• Just under half of all eligible parents have so far failed to openaccounts
• The government has been accused of not promoting the scheme enough
• Child Trust Funds will become the most widely held children'saccounts
• Investments
• Collective investments sales have been lacklustre for the last fiveyears
• Investment markets have been hit by negative investor sentiment
• But the recovery in share prices should start to restore investorconfidence
• The slowdown in the housing market could also provide a sales boost
• The ageing population profile should be positive for investmentmarkets
• With-profits products have also suffered due to the stockmarketslump
• Mis-selling accusations have further knocked confidence in theseproducts
• Insurers need to rebuild consumer trust in with-profits policies
• The ethical investments market is now worth more than ｣5.5 billion
• There would appear to be scope to extend ethical investmentspenetration
• The Consumer -- Ownership and Sectors that Fail
• Financial services products enjoy varying levels of ownership
  • Figure 14: Ownership rates for selectedfinancial services products, December 2005
• Protection products only tend to be held by a small minority ofadults
• Investment products also tend to appeal to just a small section ofsociety
• Offset mortgages have so far failed to achieve widespread popularity
• Women, over-65s and DEs are less inclined to arrange protectionpolicies
  • Figure 15: Ownership rates for selectedinsurance and mortgage products, by gender, age and socio-economicgroup, December 2005
• Full-time workers have a strong propensity to own protectionproducts
  • Figure 16: Ownership rates for selectedinsurance and mortgage products, by lifestage, working status and TVregion, December 2005
• Waitrose customers enjoy relatively high ownership of protectionpolicies
  • Figure 17: Ownership rates for selectedinsurance and mortgage products, by media usage, commercial TV viewingand supermarket usage, December 2005
• ABs and older consumers are more likely to hold investment products
  • Figure 18: Ownership rates for selectedsavings and investment products, by gender, age and socio-economicgroup, December 2005
• Consumers in the South have relatively high investment penetrationrates
  • Figure 19: Ownership rates for selectedsavings and investment products, by lifestage, working status and TVregion, December 2005
• Broadsheet readers enjoy relatively high investment ownership levels
  • Figure 20: Ownership rates for selectedsavings and investment products, by media usage, commercial TV viewingand supermarket usage, December 2005
• More than a third of consumers have regretted making a financialpurchase
  • Figure 21: 'Have regretted arranging afinancial services product', by gender, December 2005
• Consumers are most likely to have regrets over credit and loanproducts
• One in 15 consumers regret arranging an endowment mortgage
• There were also regrets over extended warranties and paymentprotection
• Few consumers regret purchasing the other types of financialproducts
• Men are more likely than women to be harbouring regrets
• Almost half of 45-54-year-olds have regrets over a financialpurchase
  • Figure 22: 'Have regretted arranging afinancial services product', by age group, December 2005
• ABC1s are more inclined to regret arranging financial services
  • Figure 23: 'Have regretted arranging afinancial services product', by socio-economic group, December 2005
• Consumers in the South and Yorkshire/North East have the mostregrets
  • Figure 24: 'Have regretted arranging afinancial services product', by TV region, December 2005
• The Consumer -- Satisfaction and Understanding
• The majority of adults feel financial products meet all or most oftheir needs
  • Figure 25: Satisfaction with financialproducts currently available, December 2005
• But around 13 million financial services customers are not fullysatisfied
• Men, 45-54s and C1s are more inclined to feel their needs are notcovered
  • Figure 26: Satisfaction with financialproducts currently available, by gender, age and socio-economic group,December 2005
• C2DE 35-54-year-olds are most likely to feel their needs are notcatered for
  • Figure 27: Satisfaction with financialproducts currently available, by age/socio-economic group, lifestage andworking status, December 2005
• Mid-market tabloid readers typically feel their financial needs arecovered
  • Figure 28: Satisfaction with financialproducts currently available, by TV region, ACORN group and media usage,December 2005
• More than four in ten consumers are switched off by financialmatters
  • Figure 29: 'Tend to switch off when itcomes to financial matters', December 2005
• Women and Es are most likely to be turned off by financial matters
  • Figure 30: 'Tend to switch off when itcomes to financial matters', by gender, age and socio-economic group,December 2005
• Nearly half of all part-time workers show little interest inpersonal finance
  • Figure 31: 'Tend to switch off when itcomes to financial matters', by working status, TV region and mediausage, December 2005
• A third of consumers would buy more products if they understood them
  • Figure 32: 'Would arrange more financialproducts if I understood them more', December 2005
• Enhanced financial understanding will have most impact on the 16-34s
  • Figure 33: 'Would arrange more financialproducts if I understood them more', by gender, age and socio-economicgroup, December 2005
• Four in ten Londoners would buy more products if they understoodthem
  • Figure 34: 'Would arrange more financialproducts if I understood them more', by working status, TV region andmedia usage, December 2005
• More than four in ten consumers would like to be more financiallyaware
  • Figure 35: 'Would like to be betterinformed about financial matters', December 2005
• More than half of all 16-34-year-olds would like to be betterinformed
  • Figure 36: 'Would like to be betterinformed about financial matters', by gender, age and socio-economicgroup, December 2005
• Half of all full-time workers yearn for greater financial knowledge
  • Figure 37: ' Would like to be betterinformed about financial matters', by working status, TV region andmedia usage, December 2005
• Financial providers should direct their efforts at 16-34s, men andC2Ds
  • Figure 38: Potential target audience, bygender, age and socio-economic group, December 2005
• The Consumer -- Products that Could Succeed and Encourage GreaterParticipation
• Some products appear to have the scope to significantly increasesales
  • Figure 39: Proportion of consumers whowould be interested in arranging specific products, December 2005
• The 'combined insurance' concept generated the greatest level ofinterest
• Children's savings, pensions and account aggregation all createdinterest
• Protection products would appear to have scope to increase sales
• Offset mortgages and all-in-one accounts could boost their marketshare
• Investment products only appeal to a small proportion of consumers
• Men, C1s and 16-34s were most interested in protection products
  • Figure 40: Proportion of consumers whowould be interested in arranging specific insurance and mortgageproducts, by gender, age and socio-economic group, December 2005
• The 'family' group were most interested in combined insurancepolicies
  • Figure 41: Proportion of consumers whowould be interested in arranging specific insurance and mortgageproducts, by lifestage, working status and TV region, December 2005
• ABs, 35-54s and women have the strongest desire for ethicalinvestments
  • Figure 42: Proportion of consumers whowould be interested in arranging specific investment products, bygender, age and socio-economic group, December 2005
• Scottish consumers displayed the most interest in endowment policies
  • Figure 43: Proportion of consumers whowould be interested in arranging specific investment products, bylifestage, working status and TV region, December 2005
• Lack of money is perceived as the key deterrent to financialparticipation
  • Figure 44: Factors which would encouragepeople to arrange more products, by gender, December 2005
• Rebuilding trust would encourage some consumers to participate more
• The provision of free financial advice might provide a boost tosales
• Women are particularly in need of greater access to financial advice
• Product complexity is also seen as a deterrent to financialparticipation
• Tax concessions could stimulate demand among some consumers
• Trust is an important issue for more than one in six 25-54-year-olds
  • Figure 45: Factors which would encouragepeople to arrange more products, by age group, December 2005
• Free advice would encourage one in six ABs to arrange more products
  • Figure 46: Factors which would encouragepeople to arrange more products, by socio-economic group, December 2005
• Problems with debt are inhibiting more than one in ten Scottishconsumers
  • Figure 47: Factors which would encouragepeople to arrange more products, by TV region, December 2005
• Potential offset mortgage customers struggle with product complexity
  • Figure 48: Factors which would encouragepeople to arrange more products, by consumers who would be interested inarranging specific insurance and mortgage products, December 2005
• Lack of cash is a major problem for potential pension and ethicalinvestors
  • Figure 49: Factors which would encouragepeople to arrange more products, by consumers who would be interested inarranging specific investment products, December 2005
• Consumer typology groups
• Typology 1: Willing but Easily Bored
• Typology 2: Interested in Finance
• Typology 3: Uninterested & Self-Helpers
  • Figure 50: Typologies relating toattitudes towards finance, by gender, age, socio-economic group and TVregion, December 2005
• Repertoire analysis
  • Figure 51: Repertoire of responses dealingwith reasons likely to make consumers take a greater interest in theirfinances, December 2005
• The Future
• The 'combined insurance' concept generated considerable interest
• Children's savings, pensions and account aggregation all createdinterest
• A number of other products also appear to have the scope to boostsales
• Regaining trust would encourage some consumers to buy more products
• The provision of free financial advice could also provide a boost tosales
• Product complexity is also seen as a deterrent to financialparticipation