This document provides an agenda and overview for a conference on the future of financial services. The conference will include presentations and panel discussions on topics such as the rise of consumer technology, the potential for financial services to undergo a "retail revolution," and the future shape of the financial services sector. Speakers will explore issues like how new entrants may disrupt the industry, how consumers and their technologies are changing, and how financial services companies could adopt more of a retail model. The goal is to discuss what the financial services industry may look like in 2020 and whether evolution or revolution is more likely.
The American shopping mall is dead! Or so some would have you believe. Since 2010 two dozen US shopping malls have closed. In the Atlanta suburbs we have recently seen the closing of Shannon Mall which is now being converted into a movie studio. Other malls like Southlake, Greenbriar and Gwinnett Place malls are arguably struggling. A proliferation of news articles and opinion pieces emphatically state that the enclosed mall concept is a thing of the past. Many believe, and would have everyone else believe, that malls which aren’t yet dead soon will be. But before we place the final “RIP” placard on the mall, it might be worthwhile to consider some other factors. Malls don’t die because the idea of an enclosed shopping venue is unattractive and obsolete. They die because demographics shift, shopping habits change, mall owners face financial challenges, malls become overly saturated with the same stores and merchandise, or a better retail venue is built nearby.
Cooper Carry retail designers Angelo Carusi and Gar Muse take a serious look at the facts and figures to declare that the American Mall is not dead and is not dying.
Part Two: Opportunities for Land-Based Casinos in a Digital WorldNicky Senyard
Part Two: Opportunities for Land-Based Casinos in a Digital World
As the US iGaming market continues to unfold slowly, land-based casinos are now evaluating the opportunities for which they can make the transition online. In part two of my webinar series with @iGaming Business, I sat down with @Peter Laverick of BAM Software to consider the noteworthy opportunities that lie with both online horseracing wagering and daily fantasy sports.
Here are some highlights from our conversation on the two verticals:
• Because both online horseracing wagering and daily fantasy sports were specifically excluded from the US Federal Government’s Unlawful Gambling Enforcement Act (UIGEA) of 2006, they have undoubtedly risen in popularity with the US population
• Opportunities exist across both verticals related to customer acquisition and product evolution
• Reminiscent of the general iGaming trend, these verticals are heading in a mobile direction. Mobile apps have become a crucial element to allow for an optimal player experience
Please take a look at the slides below for a more comprehensive recap of our conversation. Moreover, I strongly encourage you to continue the conversation in the comment section, as it would be great to hear your thoughts on these growing verticals.
The American shopping mall is dead! Or so some would have you believe. Since 2010 two dozen US shopping malls have closed. In the Atlanta suburbs we have recently seen the closing of Shannon Mall which is now being converted into a movie studio. Other malls like Southlake, Greenbriar and Gwinnett Place malls are arguably struggling. A proliferation of news articles and opinion pieces emphatically state that the enclosed mall concept is a thing of the past. Many believe, and would have everyone else believe, that malls which aren’t yet dead soon will be. But before we place the final “RIP” placard on the mall, it might be worthwhile to consider some other factors. Malls don’t die because the idea of an enclosed shopping venue is unattractive and obsolete. They die because demographics shift, shopping habits change, mall owners face financial challenges, malls become overly saturated with the same stores and merchandise, or a better retail venue is built nearby.
Cooper Carry retail designers Angelo Carusi and Gar Muse take a serious look at the facts and figures to declare that the American Mall is not dead and is not dying.
Part Two: Opportunities for Land-Based Casinos in a Digital WorldNicky Senyard
Part Two: Opportunities for Land-Based Casinos in a Digital World
As the US iGaming market continues to unfold slowly, land-based casinos are now evaluating the opportunities for which they can make the transition online. In part two of my webinar series with @iGaming Business, I sat down with @Peter Laverick of BAM Software to consider the noteworthy opportunities that lie with both online horseracing wagering and daily fantasy sports.
Here are some highlights from our conversation on the two verticals:
• Because both online horseracing wagering and daily fantasy sports were specifically excluded from the US Federal Government’s Unlawful Gambling Enforcement Act (UIGEA) of 2006, they have undoubtedly risen in popularity with the US population
• Opportunities exist across both verticals related to customer acquisition and product evolution
• Reminiscent of the general iGaming trend, these verticals are heading in a mobile direction. Mobile apps have become a crucial element to allow for an optimal player experience
Please take a look at the slides below for a more comprehensive recap of our conversation. Moreover, I strongly encourage you to continue the conversation in the comment section, as it would be great to hear your thoughts on these growing verticals.
Driving Innovation through Licensing Competitive Intelligence and Big Data…Paragon Solutions
To see the demo, download it here:
http://www.consultparagon.com/webinar-driving-innovation-through-licensing-competitive-intelligence-and-big-data-analytics.html
Today’s pharmaceutical companies are in a competitive brawl to rapidly identify, value and license promising drug candidates from external sources. This requires a significant investment in time and money, with no guarantee of success. To identify product opportunities ahead of a competitor requires a unique blend of competitive intelligence, advanced search and qualification technology, and the ability to quickly and accurately value a potential investment.
In this session, you will learn how to maximize the investment in time spent searching, qualifying and valuing new assets. This approach offers competitive advantage by putting key information used to decide whether to accelerate, abandon or hold on an opportunity at licensing and acquisitions executives’ fingertips.
Biologics in Asthma: Generics, reimbursement, and market potential Pharma Intelligence
While asthma has traditionally been considered a well-established market, there are still a number of key unmet needs that could drive further development, particularly among biologics.
In this complimentary webinar, our Datamonitor Healthcare analyst will discuss current and pending biologics being used to treat chronic asthma, including pricing and reimbursement issues, performance projections, targeted patient groups, and the impact of generics on the market.
View and listen to full webinar for free here https://www.youtube.com/watch?v=bNlUE-VH6Tc
Broad analisis of the biggest company in the world. It includes WalMart history, internal and external analysis and a focus on WalMart's internationalization with some suggestions for the future.
Driving Innovation through Licensing Competitive Intelligence and Big Data…Paragon Solutions
To see the demo, download it here:
http://www.consultparagon.com/webinar-driving-innovation-through-licensing-competitive-intelligence-and-big-data-analytics.html
Today’s pharmaceutical companies are in a competitive brawl to rapidly identify, value and license promising drug candidates from external sources. This requires a significant investment in time and money, with no guarantee of success. To identify product opportunities ahead of a competitor requires a unique blend of competitive intelligence, advanced search and qualification technology, and the ability to quickly and accurately value a potential investment.
In this session, you will learn how to maximize the investment in time spent searching, qualifying and valuing new assets. This approach offers competitive advantage by putting key information used to decide whether to accelerate, abandon or hold on an opportunity at licensing and acquisitions executives’ fingertips.
Biologics in Asthma: Generics, reimbursement, and market potential Pharma Intelligence
While asthma has traditionally been considered a well-established market, there are still a number of key unmet needs that could drive further development, particularly among biologics.
In this complimentary webinar, our Datamonitor Healthcare analyst will discuss current and pending biologics being used to treat chronic asthma, including pricing and reimbursement issues, performance projections, targeted patient groups, and the impact of generics on the market.
View and listen to full webinar for free here https://www.youtube.com/watch?v=bNlUE-VH6Tc
Broad analisis of the biggest company in the world. It includes WalMart history, internal and external analysis and a focus on WalMart's internationalization with some suggestions for the future.
The Timely Death of the Daily Deal [and the Birth of Everyday, Everywhere, Every Way Deals], A Daily Deal Insider Speaks. Perry Evans, CEO Closely
The industry surrounding Daily Deals is rapidly morphing from one-deal-per-day delivered via featured email campaigns into offer exchange networks and live mobile commerce, and loyalty promotion. This talk profiles these changes, and highlights the challenges to merchants, media publishers and consumers within an industry in rapid reconstruction.
Silverpop: Taking Loyalty Beyond the DiscountSilverpop
The term "loyalty" means different things to different digital marketers. Many small- to medium-sized businesses have implemented punch card programs to encourage repeat business and reward frequent customers, while failing to capture important customer information in a meaningful and trackable way. Some large companies spend millions of dollars on loyalty programs that drive sales and customer satisfaction, but sometimes also create discount-happy customers.
In this Webinar, Silverpop's Dave Walters will offer his advice on shifting the current thinking around these types of programs to focus on what he calls "experience-based loyalty" -- focusing on identifying user actions that indicate a deep affinity for your brand and the kinds of experiences that will amaze your customers, rather than simply handing out discounts and coupons.
Trade Talks: Creating Liquidity and Increasing Shareholder Value in the Publi...OTC Markets Group Inc.
In this webinar we discuss how community bank stocks are traded in today's market and what tools banks are utilizing to drive more liquidity in their stock. You can view the presentations here: https://youtu.be/xbfjzwmxJQ4
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the what'sapp contact of my personal vendor.
+12349014282
#pi network #pi coins #legit #passive income
#US
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
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Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
This assessment plan proposal is to outline a structured approach to evaluati...
Datamonitor FS Event, All Slides
1. HIGH NOON FOR FINANCIAL SERVICES ?
what the future has in store
thursday, 28 january 2010
2. 09.30
Financial services: A new frontier?
Liz Hartley
10.00
The rise and future of consumer technology
Alex Kwiatkowski
10.30
Coffee
11.00
Financial services: a retail revolution?
Neil Saunders
11.30
20:20 Vision
Liz Hartley
12.00
The future shape of the FS sector
Panel discussion
12.30
Buffet lunch (optional)
5. The way we were
A lot can happen in a decade…
As we look ahead to where the FS industry will be in 2020, it is worth looking back
at where we were ten years ago at the start of the millennium.
With predictions for the coming decade, how much do we believe? What did we
think would happen in the Noughties? Did our FS dreams come true – or was it all a
nightmare?
Let’s take a trip down memory lane and remind ourselves of where we were and
how far we’ve come – a lot can happen in 10 years!
8. The way we were
Many tremors, one major earthquake
9. The way we were
Where are we now?
Markets Channels
A mixed bag of ups and downs Base level of intermediation, but questions
over (investment) advice value
Largely mature markets with strong
penetration levels Branches – and physical outlets - are relevant
and evolving
Overall focus on pricing for risk, rather
than hoovering up market share The internet is critical – >50% online CAs
Equity-linked products out of favour Technology as enabler, from OTG to
comparisons
Customers Competitors
People still shaken by the banking crisis, Focus on internal organisation and
which infected FS as a whole integration for big and small alike
Recession continues to bite finances – Smaller players consolidating for
real and imaginary strength and survival
Greater awareness and interest in FS Occupied with new regulatory era
Empowerment New entrants and divestments
10. The way we were
The biggest questions
There are many big questions as we look to the short and medium-term future.
Today we’d like to focus on three main areas that are not necessarily new, but
which face a renaissance and could change the rules of engagement:
How real is the threat – and opportunity – posed by new entrants to the
mainstream FS market?
How will consumers and their technologies change and how should the industry
respond?
How should or could FS companies become like retailers?
11. Part 2
The FS Wild West - will new market entrants put
up a good fight?
12. The FS Wild West
In search of a new frontier
The Natives
FS Natives have claimed the land for generations. They know the territory, they
know their people, they know their customs. Some tribes are more combative
than others, but it’s generally a peaceful existence, with some cases of inter-
tribe marriage.
The Cowboys
The Cowboys come from a different place. They are searching for new land and
have big plans to find riches. They bring with them new ways and new weapons.
The Cowboys are big, strong and not always friendly.
14. The FS Wild West - Tesco
What will it do?
• Range will relaunch with current accounts
• Not revolutionary
• Complexity coming
• Improved pricing accuracy
• Reward new and existing customers
• Market share and growth
•In-store facilities
• No branch acquisition
•Strong online presence
• Multiple store promotion points
• Clubcard magazine push
• More focused campaigns
• 15m Clubcarders and 6m most loyal
• All socio-demographics
• New customers welcome
15. The FS Wild West – Tesco
How will it win?
• Customer insight data
• Thinks like a retailer, • Individual communications
• Multiple formats
• Customer-led • Better pricing and selection
• Engaged via shopping
• Proposition wanted • Many touch points
• Location, location, location
• Innovative, not complacent • Reinforces grocery
• Frequency of visits
• Simple, transparent, fair • Rewards, not penalisation
• Time, timing, opportunity
• Serious yet flexible • Cross-selling
• Quick scale potential
16. The FS Wild West – Tesco
What are the potential pitfalls?
• Backlash • Consumer inertia
• Planning permission • Rival offers
• Election, uncertainty
• Big Brother Britain • Market saturation
• Grocery scrutiny
• Competition fears • Brand stretch
• Compliance costs
• A stretch too far? • Core distractions
• Activism
• Too good to be
true?
17. The FS Wild West – Tesco
How much business will it win?
Within 3-5 years of launch, Tesco Bank will have 1.5% market share of current
accounts, nudging it into the top 10
Potential for launching a Tesco Finest Current Account – further opportunities to drive value and peripheral
products, such as travel insurance
Increased focus on cross-selling, awareness and incentives will drive GI share in home and motor in
particular
Wider product range across cards and savings will be popular – expect debit cards to reach 1m
Complex products, such as mortgages and life insurance will be a difficult sell – appetite, appeal and advice
are all required but questioned. We anticipate limited take up
18. The FS Wild West – Virgin
What will it do?
• Wide and full product range
• Building on Virgin Money offering & acquired books
• Own architecture and partnerships
• Price competitive
• Best buy tables
• Niche
• Direct proposition will be reinvigorated
• Branch network will be bought
• Scope is to be seen – perhaps in H2?
• Major rebranding
• Cross-promotion
• Comparisons, best buy tables, sports sponsorship
• Revamped team
• Buying in customers
• Virgin consumer is growing up
19. The FS Wild West – Virgin
How will it win?
• Simplicity
• Unconventional • Strong brand • Acquisitions
• Innovation • Group backers • Impatience
• Technology-led? • Innovative • Physical presence
• Wider product range • Risk takers • Buying in skills
• Partnerships • Socially responsible
20. The FS Wild West – Virgin
What are the potential pitfalls?
• Will we forget? • Foreign spoiler?
• Branson’s fun • Will we acquiesce? • Others buy up?
• 200 businesses • Will brand fit? • Consumer inertia
• Brand refreshment • Quality of purchase? • Unknown factors
21. The FS Wild West – Virgin
How much business will it win?
A fraction too early to call
Virgin will buy in market share to significantly increase its ranking, but the size of this will depend very largely
on how its M&A plans unfold
Product range will be fuller than existing Virgin Money offering
Expect to see greater share of the cards market through cross-selling
Greater focus on cross-selling and benefits, e.g. airmiles
Question: will Virgin Bank be around in 2020?
22. The FS Wild West – Metro Bank
What will it do?
• Manageability of core products
• Possibly instant issuance
• Banking only – no insurance?
• £4bn in assets and revenues over £150m within 5 years
• Prices not competitive
•‘ No stupid fees’
• 200 outlets by 2020
• Non-traditional operating hours
• Real focus on service and convenience
• Love Your Bank
• Internet-based promotion and ‘connectivity’
• Mascot?
• Vernon Hill and Anthony Thomson
• Mass market with a premium edge – BURPs
• Cult following?
23. The FS Wild West – Metro Bank
How will it win?
• Outlets not
• Fast food thinking
branches
• Engagement • Convenience is key
• Quick and strong
• Service focus • Simple range
• ‘No stupid hours’
• Encourage stay • Smiles
• Children and pets
• No sales goals • Instant issuance
• Freebies!
• Fairness • All equal
• Penny arcades
24. The FS Wild West – Metro Bank
How will it win?
25. The FS Wild West – Metro Bank
What are the potential pitfalls?
• Consumer inertia
• Unsophisticated
• Gimmicks • Slow to build scale
• Expect strong web
• Lost in translation • London saturation
• Domain unsold
• Foreign aversion • Points easily copied
• Range too limited
• McBank? • Price isn’t right?
26. The FS Wild West – Metro Bank
How much business will it win?
Growth will be limited by branch numbers – expect less than 0.5% market
share of current accounts in 5 years
Aim of 12 branches in 2 years – could expect network to be as large as Northern Rock’s by year 5
Market share won’t really trouble the biggest players – customer losses would each be small, and building
societies in the regions are unlikely to be hit
Big name brands are likely to see customer defection – especially those with premier focus
However, by 2020, things could be very different with 200 branches – expect up to 1.5% share (current
equivalent)
Small but perfectly formed – a medium term acquisition target?
27. The FS Wild West
The secret weapon – don’t think like a bank
Along with several other names, these 3 key players clearly believe there is
space and profit in the market and that they can win business by being
different.
The difference boils down to the core concept of not being like a typical FS player, but instead acting like a
retailer.
The question now, is who do we think will lose out, who will survive, and who will thrive in the decade ahead.
If you win when your customers lose, then you’re leaving the door open for
someone else to come in and champion the consumer
Frances Frei
29. A Bloody Battle?
Assessing new player strengths: climate
The current climate is challenging in many respects, but has
opened a wide window for new entrants
Impact rating on FS market
The banking crisis – 25% who lost trust and 10% who maintained trust are
1 2 3 4 5
very likely to look for alternative providers; 10% likely to change current account
provider now. Low impact High impact
Impact rating on FS market
Distractions - With so much market upheaval, established players are focusing 1 2 3 4 5
on internal (re)organisations, regulation, risk and repair. Low impact High impact
Impact rating on FS market
Acceptance - Commoditized products are popular, with Tesco and M&S cards
1 2 3 4 5
winning top spots in C-Sat survey, but 3 big bank brands in bottom 5. Buying car
Low impact High impact
insurance is like picking washing powder.
30. A Bloody Battle?
Assessing new player strengths: agility
Being a new entrant provides a clean slate
Impact rating on FS market
Historical ties – No legacy issues or infrastructures. It also means being able to 1 2 3 4 5
design the ideal proposition. Low impact High impact
Impact rating on FS market
Strategic partnerships – Expansion and best-in-class products and services
1 2 3 4 5
without creating a bulky organisation.
Low impact High impact
Impact rating on FS market
New technology - Core systems can be bought read-made and off-the-shelf. 1 2 3 4 5
Sophistication of CRM has also increased.
Low impact High impact
31. A Bloody Battle?
Assessing new player strengths: reach
Targeting customers well is a core strength
Impact rating on FS market
Customer analytics – Listening to customers, building a proposition around 1 2 3 4 5
them and continually revisiting this to stay ‘in tune’ and ‘on message’ will be a
Low impact High impact
key differentiator and trump card.
Impact rating on FS market
Network reach –Being more than a bank will help increase customer appeal
1 2 3 4 5
and incentivisation. Multiple format design and channel mix will maximise
Low impact High impact
customer reach.
32. A Bloody Battle?
Assessing new player weaknesses: risks
There are a number of risks involved in setting up a new bank
Impact rating on FS market
1 2 3 4 5
IT capacity – Will new players judge correctly the capacity they will need?
Low impact High impact
Impact rating on FS market
Reverse brand damage –The more products and services, the greater the risk
1 2 3 4 5
potential probability.
Low impact High impact
Impact rating on FS market
New staff integration – Possible parent – adolescent relationship could be
1 2 3 4 5
uneasy and shifting to a new way of thinking could be a challenge.
Low impact High impact
Impact rating on FS market
Financial complexity – financial intelligence is quite low and this could prompt
1 2 3 4 5
a series of ‘money basics’ products, or require partnerships.
Low impact High impact
Impact rating on FS market
Funding – Anyone wanting a serious slice of the mortgage pie will need to play 1 2 3 4 5
in the funding markets. Low impact High impact
33. A Bloody Battle?
Assessing new player weaknesses: timing
There’s a hub of activity now, but has the window shut?
Impact rating on FS market
Market maturity – An FS Premier League developed. Is there space for new 1 2 3 4 5
players? Low impact High impact
Impact rating on FS market
Timing – Has the horse bolted? Likelihood of using big banks for FS matters 1 2 3 4 5
dropped from 59% to 49%, big insurers from 22% to 15%, supermarkets from
Low impact High impact
16% to 11% and trusted retailers from 15% to 12%.
Impact rating on FS market
Inertia - The greatest hurdle. While 87% shop around for car insurance, just 1 2 3 4 5
6% switch bank accounts.. Low impact High impact
34. A Bloody Battle?
What do the smoke signals tell us?
Big brand insurers
Third parties
Enablers
Tech providers
Tech-friendly players
Big banks
Building societies
Insurers
Investment providers
Late entrants
Smaller advisers
Old brands spun off
35. A Bloody Battle?
A revolution isn’t coming
How different the US would look if the Natives had held out!
The Natives are too strong and powerful for the Cowboys to break their
stranglehold
The battle will be long and quiet, but not bloody
Some Natives will prosper by forging new friendships with the Cowboys
Over time, the Natives will learn new tricks from the Cowboys, but by and large
they will remain in power and not much will change in the decade ahead
The Cowboys are new in town and it will take a long time for them to find their feet
and favour
Their weapons will be successful, but won’t revolutionise the market in the early
years
They’ll find a small corner of land to live in happily
63. The story so far
Not revolutionary
1985 1997 1997
1.4% 0.5% 1.7%
64. The story so far
Selective entry
Current a/c
Mortgages
Savings
Personal lending
Insurance
Credit cards
65. The story so far
Unfavourable conditions
Mass market approach
Customer inertia
Stability of sector
You don’t go south until you have to
66. The story so far
The need to diversify
Average annual growth rate of retail spending
+8.3%
+5.9%
+5.5%
+4.5%
+2.7%
+1.8%
1984 - 1988 1989 - 1993 1994 - 1997 1999 -2003 2004 - 2008 2009 - 2013
69. Changing consumer
Consumers are fragmented
Yesterday’s consumer Today’s consumer
Act your age! You’re as old as you feel!
Birth, marriage, kids, death Birth, anything goes, death
Bottom, Middle, Top Hi-lo
Gender identity Gender complexity
No mass market
75. The responses
Rule 1: segmentation of the offer
A banking model
is this real segmentation?
76. The responses
Rule 1: segmentation of the offer
The rules for proper segmentation
Traditional demographics don’t work
identify Must understand needs
Calculate value of segments
quantify Calculate profitability of segment
Reaching physically
target Reaching emotionally
Solutions not products/services
build Segment champion – eliminate silos
77. The responses
Rule 2: declutter
Retail findings: change in consumers views on range (1999 to 2009)
+6.9 -5.4
% pts % pts
Important to provide an Important to have a wide
edited range of what I want range with lots of choice
78. The responses
Rule 2: declutter
The concept of edited choice
Marks & Spencer Crew Clothing
Croydon Bristol
79. The responses
Rule 2: declutter
The rules for proper location editing
One size fits all not appropriate
locate Requirements differ
Profiles differ dramatically
profile Demand driven
Competition is local
competitors Local responses required
Multi-format model
fit offer Clear communication of messages
80. The responses
Rule 3: brand building
Rules for brand building
Attention deficit Attention grabbing
Jaded consumer Innovation / newness
Scarcity of time Value for time
87. The responses
Putting it together
Segmented consumers Segment and target offers
Saturated consumers Right offer in the right place
Confused consumers Create strong brand identity and empathy
Demanding consumers Customer centricity
94. Rose tinted glasses?
Our markets in 2000
Advances on credit cards and consumer credit totalled £160bn
Mortgages lending gross advances reached £119bn
Deposits were worth £599bn and total investments £1,297bn
Personal general insurance gross written premiums topped £15bn
95. Rose tinted glasses?
What Did We Know?
What did we think we knew? What were our universal truths?
• Price is king - UK consumers are price-driven, above all other factors,
seeking the lowest fees and the best returns
• Switching behaviour is weak - Inertia is a significant factor, especially in
banking
• Satisfaction levels are satisfactory - Dissatisfaction does not lead to major
behavioural change
• Professional advice is followed – First opinions are accepted and acted
upon
• Money is secure – The UK financial industry is an ‘institution’. It is
respectable, trusted, solid, indestructible
96. Rose tinted glasses?
What Did We Know?
What did we know about consumer behaviour?
• Consumers make rational decisions – People act in their own best, long-
term interests
• Myopic view of financial future – Short-sighted and near-term ‘vision’, not
interested in broader, longer field views
• Demographic complexities dictate financial behaviours – Age and income
labels are the principle determinants of how people use and buy FS products
and services
98. Future Gazing
Our market predictions – did we guess right?
Over the last 10 years, Datamonitor and the industry generally, have tried to decode
the future and forecast the big events:
A banking storm would hit and major heads would roll
The internet would become an important channel for distribution, service and communication
Non-traditional players would increasingly figure on the FS landscape
M&A would be limited by competition rules and an FS Premiership would emerge
Aggregators would make a bit of noise
Mobile banking and iTv would take off
Mortgages were sexy
FS would be customer centric
100. Future Gazing
Consumers and customers are changing
The Datamonitor Group is keeping track of how consumers’ lives, attitudes,
values and behaviours are changing and what this means for our clients
Recession After Recovery - holistic view of how consumers are thinking and acting in the post-
recession world
Financial Services Consumer Insight – focused and innovative insight into FS consumers
Verdict’s UK Consumer Satisfaction Index and How Britain Shops – monitoring where, when
and how we spend our money
Customized consumer insight – helping clients understand their unique world
106. Future Gazing
Our markets now
Advances on credit cards and consumer credit totalled £160bn
In 2008 this had risen to £193bn
Mortgages lending gross advances reached £119bn
Gross advances totalled £261bn in 2008 after even bigger highs
Deposits were worth £599bn and total investments £1,297bn
Deposits reached £949bn, with total S&I at £1,562bn at 2008 end
Personal general insurance gross written premiums topped £15bn
The PGI market had grown to £19bn in 2008
107. Future Gazing
The world ahead
What do we know now? Where are we going?
• Price is king - UK consumers are price-driven, above all other factors, seeking the lowest
fees and the best returns – Price is a very important factor for all, but it is not everything to
everyone; base level of competitive price needed, but it is not the sole choice driver
• Switching behaviour is weak - Inertia is a significant factor, especially in banking – Switching
is likely to experience a short-term spike, but will rapidly settle back down
• Satisfaction levels are satisfactory - Dissatisfaction does not lead to major behavioural
change – There will not be a FS satisfaction revolution from consumers or industry;
consumers have greater awareness and realistic expectations
• Professional advice is followed – First opinions are accepted and acted upon – The
perception of the value of advice has been rocked in the medium-short term and it’s up to
the industry to rescue itself
• Money is secure – The UK financial industry is an ‘institution’. It is respectable, trusted,
solid, indestructible – Notion of security has been smashed and could take 10 years or a
generation to repair
108. Future Gazing
The world ahead
What might we know about consumer behaviour?
• Consumers make rational decisions – People act in their own best, long-term interests –
Consumers are frequently irrational and do not have perfect information
• Myopic view of financial future – Short-sighted and near-term ‘vision’, not interested in
broader, longer field views – Myopia has worsened and consumers are thinking more about
the immediate and short-term future, with access and control being critical factors
• Demographic complexities dictate financial behaviours – Age and income labels are the
principle determinants of how people use and buy FS products and services – Attitudes - not
demographics - dictate behaviours
110. The New World
Many ingredients in the FS melting pot
Ongoing negative PR
General election Competition concerns
Technological capabilities Capital adequacy
Role of FSA Business stability
Consumer debt and risk Foreign FS policy
Financial intelligence Consumer empowerment
111. The New World
What will our world look like? Markets mixed
Advances on credit cards and consumer credit will dip and then
reach £181bn by 2013
Mortgages lending gross advances set to climb back up to £247bn
Deposits will grow to £1,185bn, with total S&I at £2,244bn by 2013
Personal general insurance gross written premiums will recover
quickly and reach £29bn
115. The New World
What will our world look like?
Are we fussing over nothing?
Are simplified products the only way forward?
Will consumers be more discerning?
Will anything change?
What will generation Y do?
Will consumer-centrism take hold?
Can a one-size-fits-all model continue tomorrow?
How will your organisation react?
How important will price be? Will some big names disappear?
Is there a future for brokers and financial advisors?
Will consumer technology revolutionise the way we do FS business?
116. OVER TO YOU
the future shape of the fs sector
panel session