Executive Summary

1. Introduction

Background

Definition

2. Strategic Overview

Market Dynamics And Segmentation

Current Status Of The Market

Total Industry Value And Growth

The Largest Sector

The Market With The Highest Growth Rate

The Market With The Lowest Growth Rate

Economic Trends

Population

Table.1: Uk Resident Population Estimates By Sex (000), Mid-years-

Gross Domestic Product

Table.2: Uk Gross Domestic Product At Current And Annual Chain-linked Prices (£m),-

Inflation

Table.3: Uk Rate Of Inflation (%),-

Unemployment

Table.4: Actual Number Of Unemployed Persons In The Uk (million),-

Household Disposable Income

Table.5: Uk Household Disposable Income Per Capita (£),-

Consumer Confidence

Table.6: Nationwide Consumer Confidence, Present Situation, Expectations And Spending Indices, May And February-february

Regulatory Change

Basic Bank Accounts

The Lending Code

Financial Services Authority

Treating Customers Fairly

Financial Capability And Money Guidance

Financial Services Consumer Panel

Financial Ombudsman

Competitive Structure

The Consumer

Table.7: Attitudes Towards The Customer Services Provided By Financial Institutions (% Of Respondents), And

Market Forecasts

3. Banks

Background And Market Size

Market Shares

Table.1: The Uk's Top Nine Banks By Value Of Loans And Advances To Customers (£m),-

Market Trends

Account Aggregation

Electronic Banking And Customer Relationship Management

Individual Voluntary Arrangements

Charges

Distribution

Table.2: Employment In Major British Banking Groups (000 And Index=100),-

Table.3: Major British Banking Groups By Number Of Branches,-

Consumer Trends

"i Like To Discuss My Financial Affairs With Trained Staff Face-to-face"

"i Rely On My Bank For Organising My Financial Affairs"

Marketing Activity

Main Media Advertising

Table.4: Main Media Advertising Expenditure By Banks On Current-account Banking Services By Type Of Account (£000), Years Ending December And

Table.5: Main Media Advertising Expenditure By Banks On Savings Banking Services By Type Of Account (£000), Years Ending December And

4. Building Societies And Credit Unions

Background And Market Size

Building Societies

Credit Unions

Market Shares

Table.1: The Uk's Leading Building Societies By Group Assets (£m),st December

Market Trends

Distribution

Table.2: Employment In Uk Building Societies By Type Of Contract (number And Index=100),-

Table.3: Building-society Branches In The Uk (number And Index=100),-

Consumer Trends

"i Rely On My Building Society For Organising My Financial Affairs"

"i Think My Own Community Should Set Up A Financial Service For Local People"

Marketing Activity

Main Media Advertising

Table.4: Main Media Advertising Expenditure By Building Societies By Type Of Product (£000), Years Ending December And

5. Insurance Companies

Background And Market Size

Mis-selling

Market Shares

Life Insurance

Table.1: The Ten Largest Life Insurers By Total Uk Net Premium Income (£m And %), And

General Insurance

Table.2: The Ten Largest General Insurers By Total Uk Net Premium Income (£m And %), And

Market Trends

Life-insurance Regulation

General-insurance Regulation

Distribution

Life Insurance

General Insurance

Table.3: Employment In The Uk Insurance Industry (000 And Index=100),-

Consumer Trends

Life Insurance

"i Believe My Insurance Company Will Provide Me With The Products I Need"

"i Believe My Pension Provider Will Deliver The Service I Need"

General Insurance

Marketing Activity

Life Insurance

Main Media Advertising

Table.4: Main Media Advertising Expenditure On Life Insurance (£000), Years Ending December And

Table.5: Main Media Advertising Expenditure On Pensions (£000), Years Ending December And

General Insurance

Main Media Advertising

Table.6: Main Media Advertising Expenditure On General Insurance By Sector (£000), Years Ending December And

Table.7: Main Media Advertising Expenditure On Multiproduct Insurance (£000), Years Ending December And

6. Independent Financial Advisers

Background And Market Size

Table.1: Number Of Independent Financial Adviser Firms In The Uk (number And Index=100),-

Market Shares

Table.2: The Uk's Leading Independent Financial Adviser Firms By Number Of Sales Staff And Turnover (number And £m),-

Market Trends

Retail Distribution Review

Adviser Remuneration

Professionalism

Corporate Pensions

Pure Protection

Distribution

Consumer Trends

"financial-services Providers Charge Too Much For The Level Of Service They Provide"

"it Is Better To Pay Upfront For Financial Advice Than Pay Commission On Products Later"

"i Rely On An Independent Financial Adviser For Organising My Financial Affairs"

Marketing Activity

Main Media Advertising

Table.3: Main Media Advertising Expenditure On Independent Financial Advice (£000), Years Ending December And

7. Automated Teller Machines

Background And Market Size

Market Trends

Distribution

Table.1: Number Of Atms In The Uk By Type (000 And Index=100),-

Consumer Trends

"i Prefer To Deal With A Cash Machine (atm), Rather Than Go Into A Bank Branch"

Marketing Activity

8. Call Centres

Background And Market Size

Table.1: Number Of Personal Customers Registered To Access Their Bank Accounts By Telephone (000 And Index=100),-

Market Trends

Staff Training

The Future Of The Call Centre

Distribution

Consumer Trends

"i Feel Confident That Call-centre Staff Can Handle My Financial Affairs"

Marketing Activity

Main Media Advertising

9. Internet Sites

Background And Market Size

Table.1: Number Of Personal Customers Registered To Access Their Bank Accounts By Computer (000 And Index=100),-

Market Trends

Malware

`phishing' And Identity Theft

Carelessness

Distribution

Wrap Accounts

Consumer Trends

"i Feel Confident That Internet Sites Can Handle My Financial Affairs"

Marketing Activity

Main Media Advertising

10. An International Perspective

Introduction

Pre-contractual Information

Opacity

Timing

Third Parties

Unfair Commercial Practices Directive

Markets In Financial Instruments Directive

Credit Agreements Directive

Consumer Credit Directive

Undertakings For Collective Investment In Transferable Securities

Packaged Retail Investment Products

Advice

Behavioural Economics

Bank Fees

Switching Bank Accounts

Product Tying

Debt

11. Pest Analysis

Political Factors

Influence

Profit Versus Customer Welfare

Shareholders And Corporate Control

Pensions

Financial Literacy

Regulation

Competition

Economic Factors

Economic Growth

The Stock Market

Social Factors

Personal Wealth

The Ageing Population And Pension Funds

Consumer Education

Investors

New Loan Vehicles

Technological Factors

Investment In Technology

Smart Cards

Outsourcing

Application Of Technology

12. Consumer Dynamics

Overview

Table.1: Attitudes Towards The Customer Services Provided By Financial Institutions (% Of Respondents), And

Staff Efficiency And Friendliness

"i Value Speed And Accuracy Of Service More Than Friendly Service"

Table.2: I Value Speed And Accuracy Of Service More Than Friendly Service (% Of Respondents),

"i Value Friendly Staff More Than Accuracy Of Service"

Table.3: I Value Friendly Staff More Than Accuracy Of Service (% Of Respondents),

"i Do Not Mind Staff Mistakes If They Make An Effort To Put Them Right"

Table.4: I Do Not Mind Staff Mistakes If They Make An Effort To Put Them Right (% Of Respondents),

Customer Care

"i Do Not Think Financial-services Providers Care About Their Customers"

Table.5: I Do Not Think Financial-services Providers Care About Their Customers (% Of Respondents),

"i Think That Customer Services Have Improved Over The Last Years"

Table.6: I Think That Customer Services Have Improved Over The Last Years (% Of Respondents),

The Financial Services Authority

"i Believe That The Financial Services Authority Is Committed To Protecting The Consumer"

Table.7: I Believe That The Financial Services Authority Is Committed To Protecting The Consumer (% Of Respondents),

Attitudes Towards Financial-services Providers

"i Want My Financial-services Provider To Anticipate My Financial Needs"

Table.8: I Want My Financial-services Provider To Anticipate My Financial Needs (% Of Respondents),

"i Would Like My Financial-services Provider To Offer Me A Choice Of Personalised Services For A Fee"

Table.9: I Would Like My Financial-services Provider To Offer Me A Choice Of Personalised Services For A Fee (% Of Respondents),

"financial-services Providers Charge Too Much For The Level Of Service They Provide"

Table.10: Financial-services Providers Charge Too Much For The Level Of Service They Provide (% Of Respondents),

"it Is Better To Pay Upfront For Financial Advice Than Pay Commission On Products Later"

Table.11: It Is Better To Pay Upfront For Financial Advice Than Pay Commission On Products Later (% Of Respondents),

Desire For Personal Service

"i Prefer To Deal With A Cash Machine (atm), Rather Than Go Into A Bank Branch"

Table.12: I Prefer To Deal With A Cash Machine (atm), Rather Than Go Into A Bank Branch (% Of Respondents),

"i Like To Discuss My Financial Affairs With Trained Staff Face-to-face"

Table.13: I Like To Discuss My Financial Affairs With Trained Staff Face-to-face (% Of Respondents),

Confidence In Call Centres And Internet Sites

"i Feel Confident That Call-centre Staff Can Handle My Financial Affairs"

Table.14: I Feel Confident That Call-centre Staff Can Handle My Financial Affairs (% Of Respondents),

"i Feel Confident That Internet Sites Can Handle My Financial Affairs"

Table.15: I Feel Confident That Internet Sites Can Handle My Financial Affairs (% Of Respondents),

Reliance On Banks, Building Societies And Independent Financial Advisers

"i Rely On My Bank For Organising My Financial Affairs"

Table.16: I Rely On My Bank For Organising My Financial Affairs (% Of Respondents),

"i Rely On My Building Society For Organising My Financial Affairs"

Table.17: I Rely On My Building Society For Organising My Financial Affairs (% Of Respondents),

"i Rely On An Independent Financial Adviser For Organising My Financial Affairs"

Table.18: I Rely On An Independent Financial Adviser For Organising My Financial Affairs (% Of Respondents),

Faith In Insurance Companies And Pension Providers

"i Believe My Insurance Company Will Provide Me With The Products I Need"

Table.19: I Believe My Insurance Company Will Provide Me With The Products I Need (% Of Respondents),

"i Believe My Pension Provider Will Deliver The Service I Need"

Table.20: I Believe My Pension Provider Will Deliver The Service I Need (% Of Respondents),

Community Banks

"i Think My Own Community Should Set Up A Financial Service For Local People"

Table.21: I Think My Own Community Should Set Up A Financial Service For Local People (% Of Respondents),

13. Company Profiles

Barclays Plc

Corporate Strategy

Strengths And Weaknesses

Product And Brand Development

Marketing

Distribution

Profitability

Table.1: Financial Results For Barclays Plc (£000, Number, % And £), Years Endingst December -

Future Company Developments

Hsbc Bank Plc

Corporate Strategy

Strengths And Weaknesses

Product And Brand Development

Marketing

Distribution

Profitability

Table.2: Financial Results For Hsbc Bank Plc (£000, Number, % And £), Years Endingst December -

Future Company Developments

Legal & General Group Plc

Corporate Strategy

Strengths And Weaknesses

Product And Brand Development

Marketing

Distribution

Profitability

Table.3: Financial Results For Legal & General Group Plc (£000, Number % And £), Years Endingst December -

Future Company Developments

Lloyds Banking Group Plc

Corporate Strategy

Strengths And Weaknesses

Product And Brand Development

Marketing

Distribution

Profitability

Table.4: Financial Results For Lloyds Banking Group Plc (£000, Number, % And £), Years Endingst December -

Future Company Developments

Nationwide Building Society

Corporate Strategy

Strengths And Weaknesses

Product And Brand Development

Marketing

Distribution

Profitability

Table.5: Financial Results For Nationwide Building Society (£000 And %),st April-

Future Company Developments

The Royal Bank Of Scotland Group Plc

Corporate Strategy

Strengths And Weaknesses

Product And Brand Development

Marketing

Distribution

Profitability

Table.6: Financial Results For The Royal Bank Of Scotland Group Plc (£000, Number, % And £), Years Endingst December-

Future Company Developments

Santander Uk Plc

Corporate Strategy

Strengths And Weaknesses

Product And Brand Development

Marketing

Distribution

Profitability

Table.7: Financial Results For Santander Uk Plc (£000, Number, % And £), Years Endingst December -

Future Company Developments

14. The Future

The Economy

Population

Table.1: Forecast Uk Resident Population By Sex (000), Mid-years-

Gross Domestic Product

Table.2: Forecast Growth In Uk Gross Domestic Product In Real Terms (%),-

Inflation

Table.3: Forecast Uk Rate Of Inflation (%),-

Unemployment

Table.4: Forecast Actual Number Of Unemployed Persons In The Uk (million),-

Forecasts To

Bank Branches

Table.5: Forecast Number Of Branches Operated By Major British Banking Groups (number And Index=100),-

Building-society Branches

Table.6: Forecast Number Of Building-society Branches In The Uk (number And Index=100),-

Independent Financial Adviser Firms

Table.7: Forecast Number Of Independent Financial Adviser Firms In The Uk (number And Index=100),-

New Developments

Zopa

People's Bank

Independent Financial Advisers

Outsourcing

Conclusion

15. Further Sources

Associations

Publications

General Sources

Government Sources

Other Sources

Key Note Sources