Product category:
Market research
News Release from: Illuminas | Subject: Consumer confidence survey
Edited by the Marketingservicestalk Editorial
Team on 28 January 2008
Financial service providers must rebuild
trust
The latest consumer confidence survey from financial research expert Illuminas confirms that falling consumer confidence has dented trust in financial service providers compared with 12 months ago.
The results suggest, however, consumers are unlikely to change their credit based spending habits significantly in 2008 which is good news for the sector Illuminas conducted the research among adult consumers in the UK in January 2008
This article was originally published on Marketingservicestalk on 17 Apr 2007 at 8.00am (UK)
Related stories
Illuminas chiefs to unveil Youth Quotient tool
Directors from global market research firm Illuminas will be presenting a paper at the Esomar Consumer Insights Conference 2007 in Milan on 7-9 May on their Youth Quotient measurement tool.
Rejuvenate your brand at the fountain of youth
Jonathan Fletcher, Creative Director of Illuminas-Global, suggests that the best way to inject new life into brands is to target the youngest demographic available.
Nearly three-quarters of respondents believe the economy will slow down over the next 12 months and one in two believes another financial institution will fail in the next year.
The main reasons given for the economic slowdown over the next 12 months were consumer indebtedness, irresponsible lending (both 43 per cent) and US economic conditions (37 per cent).
Over the next year most consumers expect the cost of living to increase (89 per cent) and inflation to rise (72 per cent).
Further reading
Making your brand 'Facebook friendly'
A new study from Illuminas highlights the uniqueness of social networking and how brands need to fit into the community.
Breaking into the Chinese banking market
Banking on China; can western banks offset losses in USA by tapping into the growing Chinese urban elite?
In the current financial climate trust emerges as a key issue.
One third of respondents claim they trust financial service providers less than 12 months ago.
From a list of 12 sources for advice and information on personal finance issues; high street banks were ranked 8th in terms of trustworthiness behind IFAs, accountants, building societies and even financial comparison websites, but above solicitors, government bodies, insurance companies and newspapers.
Three-quarters of consumers interviewed believe financial services providers are too eager to lend money to customers who might not be capable of paying it back; nearly two-thirds think providers should be more heavily regulated; and half believe financial service providers are partially responsible for the current downturn in the economy.
On the positive side a quarter of consumers would value a closer relationship with a provider; 37 per cent are more likely to use well-known providers and 71 per cent believe the cheapest provider is not always the best.
How will consumers change their behaviour? On the one hand consumers say they need to balance their finances over the next year; with four out of five agreeing it is important to have savings to protect themselves from unexpected expenses and currently three quarters agreeing they try and live within their means.
In reality however, behaviour is unlikely to change significantly over the next 12 months; only a third claim they will use their credit card less and only two-fifths intend to save more.
Looking for better value will be a key theme for 2008; with 55 per cent claiming they are more likely to use a price comparison website this year and 44 per cent claiming they will switch financial providers to get a better deal.
John Connaughton, CEO of Illuminas, said: "Consumer confidence has weakened since 12 months ago but while consumers believe they should rein in spending; the reality may be a little different given the current attitudes towards saving.
"In 2008 consumers will be seeking better value in financial services so competition for customers is likely to increase".
• Illuminas: contact details and other news
• Email this article to a colleague
• Register for the free Marketingservicestalk email newsletter
• Marketingservicestalk Home Page
Search the Pro-Talk network of sites
