2021
9
UK Brand Overview: Finance Market Report 2021
2021-09-10T04:12:03+01:00
OX1049189
2195
142275
[{"name":"Finance","url":"https:\/\/store.mintel.com\/industries\/finance"}]
Report
en_GB
“The pandemic will create more interest and engagement with personal finances, but we are yet to see that translate into an intention to switch provider in search of better deals.

UK Brand Overview: Finance Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

The UK Brand Overview: Finance report identifies consumer attitudes towards financial services, and top brands in the financial services sector in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Finance market in the UK. 

Current Market Landscape 

Although the pandemic has encouraged more people to think about their finances, only 11% say that it has encouraged them to think more about switching provider. Loyalty tends to be passive in the financial services market, rather than being driven by the belief that brands work hard to look after their longest-standing customers.

  • 17% of mortgage holders have taken a payment holiday as a result of COVID-19.
  • 38% of adults with cash savings have increased the value of their savings pot compared to 12 months prior.
  • 59% of consumers expect to add more to their savings over the coming year to only 28% who expect to dip into them in that same timeframe.

COVID-19 will have a long-lasting impact on the financial services industry, accelerating the rate at which brands head towards digitisation and reducing the reliance on cash even further than before the pandemic.

Future Market Trends in UK B2B Economic Outlook

New regulations that prevent brands from offering lower prices to new customers over existing ones should boost retention, but will make it a harder challenge to attract new customers. Combined with the general lack of consumer intention in switching providers, brands will need to invest more in their experience and wider benefits to appeal to new customers, rather than just relying on low prices to attract custom.

There is a huge opportunity for brands to use the post-pandemic period to quicken their technological advancement. Some of the newer tech-driven brands in the market receive particularly enthusiastic reviews from their users, showing that digital distribution is no barrier to creating an emotional connection between brands and their customers. Using technology to boost convenience and user experience can turn customers into champions and help attract new customers through reviews and recommendations.

Read on to discover more details or take a look at all of our UK Finance market research.

Quickly understand

  • The impact of COVID-19 on the financial services sector.
  • The leading financial services brands on metrics like usage, trust, preference, differentiation, and satisfaction and recommendation.
  • The top-scoring brands for particular attributes including ethics, customer service, competency and reliability.
  • The standout brands on traits including progressiveness, rewarding loyalty, innovation and helpfulness.

Covered in this report

Brands: Paypal, Visa, Post Office, MasterCard, CompareTheMarket, MoneySuperMarket, Nationwide, Halifax, Barclays, Santander, RAC, AA Insurance, Aviva, Apple Pay, Monzo, Klarna, Google Play, Zopa, Revolut, FairFX, American Express, uSwitch, Santander, Revolut, Co-op Insurance, Animal Friends, Shawbrook Bank, Hitachi Personal Finance, Admiral, Legal & General, Tesco Bank, Zopa.

Expert analysis from a specialist in the field

This report, written by Richard Hopping, a leading analyst in the Financial sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The pandemic will create more interest and engagement with personal finances, but we are yet to see that translate into an intention to switch provider in search of better deals. COVID-19 therefore seems unlikely to create a seismic shift in the consumer inertia that tends to pervade the financial services industry. Technological advancements to promote convenience, flexibility and sustainability will be key to leveraging the current passive loyalty that exists and turning it into a more emotional version that turns existing customers into champions.
Richard Hopping
Senior Brand and Household Care Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on financial services
      • Figure 1: Short, medium and long-term impact of COVID-19 on financial services, 2021
    • Brand leaders
    • The shift towards online will boost usage of cashless payments
      • Figure 2: Top brands operating in the financial services sector, by usage in the last 12 months, 2018-21
    • High usage allows for development of trust
      • Figure 3: Top brands operating in the financial services sector, by agreement with “A brand that I trust”, 2018-21
    • Convenience and technology boost enthusiastic reviews
      • Figure 4: Top brands operating in the financial services sector, by excellent reviews, 2018-21
    • Digital brands are in a position to grow but have a ceiling
      • Figure 5: Top brands operating in the financial services sector, by likely recommendation, 2018-21
    • Preference is often independent from emotion
      • Figure 6: Top brands operating in the financial services sector, by commitment (net of “I prefer this brand over others” and “It’s a favourite brand”), 2018-21
    • Brands face a challenge to stand out without alienating more traditional users
      • Figure 7: Top brands operating in the financial services sector, by differentiation (net of “This brand somewhat stands out” and “It’s a unique brand”), 2018-21
    • Brand reputation
    • Ethical responsibility is becoming more important
      • Figure 8: Top brands operating in the financial services sector, by agreement with “Ethical”, 2018-21
    • Definitions of customer service will change over time
      • Figure 9: Top brands operating in the financial services sector, by agreement with “A brand that has great customer service”, 2018-21
    • Competence and reliability help underpin trust
      • Figure 10: Top brands operating in the financial services sector, by agreement with “Competent”, 2018-21
    • PayPal’s reliability is a strong driver of its brand image
      • Figure 11: Top brands operating in the financial services sector, by agreement with “Reliable”, 2018-21
    • ComparetheMarket stands out for rewarding loyalty
      • Figure 12: Top brands operating in the financial services sector, by agreement with “A brand that rewards loyalty”, 2018-21
    • Technological advancement drives progressive image
      • Figure 13: Top brands operating in the financial services sector, by agreement with “Progressive”, 2018-21
    • Helping customers has become even more important
      • Figure 14: Top brands operating in the financial services sector, by agreement with “Helpful”, 2018-21
  3. Impact of COVID-19 on Financial Services Brands

    • Impact of COVID-19 on financial services
      • Figure 15: Short, medium and long-term impact of COVID-19 on financial services, 2021
    • Heritage brands benefit from their experience and reassurance
    • An opportunity to right some perceived wrongs from the last recession
      • Figure 16: Consumer perceptions of how well different types of company have supported customers during the COVID-19 pandemic, 2021
    • Financial services brands spring into action to aid people
    • Insurance brands still have a chance to make a difference
    • The reduction in consumer spending has boosted savings
      • Figure 17: Consumers cutting back on non-essential spend since the start of the COVID-19 pandemic, 2020-21
    • Switching intent is low despite higher engagement with finances
      • Figure 18: The impact of COVID-19 on consumers’ approaches to financial services, 2021
    • Online retail booms, shifting spend to cards and digital payments
      • Figure 19: Behaviours since the start of the COVID-19 pandemic, 2020-21
    • The online shift will encourage brands to go digital
  4. Brand Leaders – Key Takeaways

    • The shift towards online will promote alternative payment methods
    • Brands need to weigh up the decision to close branches
    • Digital-first brands enthuse existing customers
  5. Brand Usage

    • The shift towards online will boost usage of cashless payments
      • Figure 20: Top brands operating in the financial services sector, by usage in the last 12 months, 2018-21
    • Price comparison sites play a vital role in the purchase journey
      • Figure 21: Products research through price comparison websites, 2020
  6. Trust in Financial Services Brands

    • High usage allows for development of trust
      • Figure 22: Top brands operating in the financial services sector, by agreement with “A brand that I trust”, 2018-21
    • AA, Aviva and Barclaycard stand out given their categories
      • Figure 23: Trust in different aspects of financial services, 2020
    • Banking brands may lose trust by closing branches
  7. Brand Satisfaction and Recommendation

    • Convenience and technology boost enthusiastic reviews
      • Figure 24: Top brands operating in the financial services sector, by excellent reviews, 2018-21
    • Digital brands are in a position to grow but have a ceiling
      • Figure 25: Top brands operating in the financial services sector, by likely recommendation, 2018-21
  8. Brand Preference

    • Preference is often independent from emotion
      • Figure 26: Top brands operating in the financial services sector, by commitment (net of “I prefer this brand over others” and “It’s a favourite brand”), 2018-21
    • Size matters in financial services
  9. Brand Differentiation

    • Only a few brands really stand out on their own
      • Figure 27: Top brands operating in the financial services sector, by differentiation (net of “This brand somewhat stands out” and “It’s a unique brand”), 2018-21
    • Brands face a challenge to stand out without representing a total shift
    • ComparetheMarket differentiates itself using marketing
      • Figure 28: Revenue of leading price comparison sites, 2018 and 2019
  10. Brand Reputation – Key Takeaways

    • Ethicality is on the rise
    • New ways to prove customer service beyond human contact
    • Consumers stick to brands despite the lack of incentives
  11. Ethical Financial Services Brands

    • Ethical responsibility is becoming more important…
      • Figure 29: Top brands operating in the financial services sector, by agreement with “Ethical”, 2018-21
    • …but ethics are still a lower priority than functional features
      • Figure 30: Purchase drivers for current accounts, 2020
    • As brands engage, consumer focus on ethics will grow
      • Figure 31: Consideration of company/brand ethics when making a purchase, by retail sector, 2019
  12. Customer Service in Financial Services

    • Definitions of customer service will change over time
      • Figure 32: Top brands operating in the financial services sector, by agreement with “A brand that has great customer service”, 2018-21
    • Customer contact can benefit the perception of service
      • Figure 33: Impact of customer contact on trust, by reason for contacting main bank, 2020
  13. Competency and Reliability in Financial Services

    • Competence and reliability help underpin trust
      • Figure 34: Top brands operating in the financial services sector, by agreement with “Competent”, 2018-21
    • PayPal’s reliability is a strong driver of its brand image
      • Figure 35: Top brands operating in the financial services sector, by agreement with “Reliable”, 2018-21
  14. Loyalty in Financial Services

    • ComparetheMarket stands out for rewarding loyalty
      • Figure 36: Top brands operating in the financial services sector, by agreement with “A brand that rewards loyalty”, 2018-21
    • Even without loyalty initiatives, switching is still uncommon
  15. Innovative Brands in Financial Services

    • Technological advancement drives progressive image
      • Figure 37: Top brands operating in the financial services sector, by agreement with “Progressive”, 2018-21
    • Tech-first brands create enthusiastic users
  16. Helpful Brands in Financial Services

    • Helping customers has become even more important
      • Figure 38: Top brands operating in the financial services sector, by agreement with “Helpful”, 2018-21
    • Brands with a helpful mission excel
  17. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
  18. Appendix – Brands Covered

Why Mintel?

Gain access to high quality market research with every purchase of Mintel’s consumer reports. Here's what else you can expect when buying from us:

Mintel’s Clients Portal

After your purchase is completed, you’ll receive an invitation to join Mintel’s Clients Portal which provides instant access to supplementary insights from Mintel’s industry experts.

Multiple Report Formats

Mintel’s reports are available in PDF and PPT formats, and arrive in your inbox alongside an excel datasheet, so you can share Mintel’s market intelligence with ease.

Interactive Databook

Mintel’s bespoke consumer data is presented as an interactive website, so you can deep dive into your chosen topic, explore demographics and download specific statistics.

Custom Presentations

Using Mintel’s custom presentation tool, you can easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.

Browse our sample PDF report below:

Click to show report
2024 Sample Consumer Cover

Please Note: All of the figures, graphs, and tables in this sample report have been redacted.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch