Focus on the Financial Services Consumer Megatrends 2008

NEW YORK--(BUSINESS WIRE)--Reportlinker.com announces that a new market research report related to the Financial services industry is available in its catalogue.

Financial Services Consumer Megatrends 2008

http://www.reportlinker.com/p097332/Financial-Services-Consumer- Megatrends-2008.html

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Introduction

Datamonitor's introductory report to the analysis of consumer trends within financial services. This report sets-out Datamonitor's financial services Consumer Megatrend Framework and demonstrates what value the framework can have for strategic development and building a wider customer understanding.

Scope

*Introduces Datamonitor's Financial Services Consumer Megatrend framework

*Provides an analysis of the ways in which a consumer trend framework can be integrated into strategic planning

*Presents the megatrend framework in detail, presenting examples of how the trends manifest across FS

*Provides Datamonitor's view on how these consumers can be better targeted using the megatrend framework

Highlights

Datamonitor has identified 10 Megatrends in consumer behaviour that are developing, shaping and driving attitudes towards global financial services. These Megatrends are as follows: Authenticity, Comfort, Connectivity, Individualism, Wellbeing, Demographic complexity, Financial Intelligence complexity Lifestage complexity and Wealth complexity

These Megatrends underlie consumer behaviours and attitudes, influencing their choices of product and provider across all of financial services. Price will always be an important factor, but when a consumer is presented with identically priced products their attitudes and behaviours will determine their final purchasing decision.

Reasons to Purchase

*Gain a deeper understanding into the driving forces behind consumer choices.

*Learn how to use a consumer trend framework within strategic planning to boost business opportunities

*Gain knowledge of best practice examples from around the globe.

Overview 1

Catalyst 1

Summary 1

Executive Summary 2

The Datamonitor Financial Services Consumer Megatrend Framework 2

Table of Contents 3

Table of figures 4

Introducing the Financial Services consumer megatrends framework 5

A Megatrend framework is a vital tool for analyzing and structuring consumer attitudes and behaviors 5

A trend framework is used for generating and selecting ideas 5

A framework provides a structure for idea generation 5

A framework allows the user to pick the winning ideas 5

The importance that a consumer places on factors such as community, traditional values, convenience, simplicity and culture impacts buying behaviors 5

A Megatrend framework is vital for financial services 6

Customer retention as well as customer acquisition must be considered 6

There are inherent obstacles in financial services that limit innovation in customer targeting 6

Price and performance have historically been relied upon as the primary means of targeting customers 6

Greater customer understanding can help overcome the obstacles found with targeting and communicating to customers 7

The framework is defined by a series of consumer Behaviors and Complexities 9

The Megatrend framework has a hierarchy of trends and sub-trends 9

The Megatrends hierarchy has no ranking at the global industry level 10

The Megatrend framework is applicable to all consumers across the globe 11

The six behavior trends identify the benefits that consumers wish to gain from a product or service 11

The four complexities are areas within which traditional assumptions or measures of behavior can no longer be applied 11

Trends are distinctly different from fads 11

Because counter-trends exist it does not invalidate the trend 11

Ten Megatrends that impact the actions and attitudes of Financial Services customers have been defined 12

Authenticity 12

Comfort 12

Connectivity 12

Convenience 12

Individualism 12

Wellbeing 12

Demographic Complexity 13

Financial Intelligence Complexity 13

Lifestage Complexity 13

Wealth Complexity 13

Megatrends in action 14

Macroeconomic and shareholder pressures present financial services companies with challenging conditions 14

Consumer empowerment means providers must work harder then ever to attract and retain customers 14

Competing on price alone is a vicious circle, so players must look past price 14

Targeting the Authenticity Megatrend 15

What is the Authenticity Megatrend? 15

The Authenticity trend in Financial Services 15

Presenting an authentic, honest and human image is vital 15

Financial Services companies highlight their heritage and traditional credentials 17

Datamonitor view of Authenticity in action 18

Targeting the Comfort Megatrend 19

What is the Comfort Megatrend? 19

The Comfort Megatrend in Financial Services 19

Customers want to feel protected by their financial services provider 19

Consumers' desire for "Cocooning" and feeling safe and soothed by one's home 20

Datamonitor view of Comfort in action 22

Financial services institutions can learn from retailers how to target the simplification trend 22

Insurers have forgotten their raison d'être 23

Restoring trust is paramount for the global industry 23

Targeting the Connectivity Megatrend 24

What is the Connectivity Megatrend? 24

The Connectivity trend in Financial Services 24

Ethical consumerism is impacting all parts of the decision-making process 24

Positional consumption gives consumers a feeling of "belonging" 27

Datamonitor view of Connectivity in action 29

Many companies already target the Connectivity trend 29

The key opportunities are now found in bringing trend efforts into the 21st century 29

Tapping into new communities provides a wealth of opportunities 29

Differentiation for the mass market will reap rewards 30

Targeting the Convenience Megatrend 30

What is the Convenience Megatrend? 30

The Convenience Megatrend in Financial Services 30

Time scarcity is having a huge impact on consumers, encouraging multitasking on-the-go 30

Consumers are seeking ways to outsource effort 32

Datamonitor view of Convenience in action 33

Targeting the Individualism Megatrend 34

What is the Individualism Megatrend? 34

The Individualism Megatrend in Financial Services 34

Consumers are looking for ways to customize and personalize goods and services 34

Focus on the 'self' 36

Datamonitor view of Individualism in Action 37

Targeting the Wellbeing Megatrend 37

What is the Wellbeing Megatrend? 37

The Wellbeing Megatrend in Financial Services 38

Consumers are seeking services that help them build healthy lifestyles 38

Some financial services providers are encouraging customers to "self-medicate" and "self-prescribe" 39

Datamonitor view of Wellbeing in action 40

Targeting the Demographic Complexity Megatrend 40

What is the Demographic Complexity Megatrend? 40

The Demographic Complexity Megatrend in Financial Services 41

Consumers are displaying new attitudes to family responsibilities 41

Attitudes to women and their role in society have shifted dramatically 42

Datamonitor view of Demographic Complexity in action 44

Targeting the Financial Intelligence Complexity Megatrend 44

What is the Financial Intelligence Megatrend? 44

The Financial Intelligence Complexity Megatrend within Financial Services 45

Consumers have a tendency to pass the buck and get into debt through ignorance 45

Consumers are apathetic about their finances 47

Datamonitor view of the Financial Intelligence Complexity Megatrend in action 49

There are a number of quick ways to succeed in the Financial Intelligence Complexity Megatrend 49

Providers should help consumers face the fear and make finance fun 49

Targeting the Lifestage Complexity Megatrend 50

What is the Lifestage complexity Megatrend? 50

The Lifestage Complexity Megatrend in Financial Services 50

Marriage and families no longer follow a conventional pattern 50

Financial services institutions can be more than just banks or insurers 52

Datamonitor view of the Lifestage Complexity in action 54

Targeting the Wealth Complexity Megatrend 55

What is the Wealth Complexity Megatrend? 55

The Wealth Complexity Megatrend in Financial Services 55

Both inconspicuous and conspicuous consumption are becoming more of a consideration for consumers 55

Increased physical and financial mobility means wealth is not as much of a defining feature as it once was 56

Datamonitor view of Wealth Complexity in action 57

APPENDIX 59

Definitions 59

The Ten Financial Services Consumer Megatrends 59

Authenticity 59

Comfort 59

Connectivity 59

Convenience 59

Individualism 59

Wellbeing 59

Demographic Complexity 59

Financial Intelligence Complexity 60

Lifestage Complexity 60

Wealth Complexity 60

Further reading 60

Ask the analyst 60

Datamonitor consulting 60

Disclaimer 60

List of Figures

Figure 1: A financial services company can pitch its level of customer understanding at various stages depending on the company's sophistication 7

Figure 2: The Megatrend Framework has a hierarchy of trends and sub-trends 9

Figure 3: There are 10 Financial Services Consumer Megatrends, shown here in alphabetical order 10

Figure 4: First Direct uses a number of tools to promote its Authenticity message 16

Figure 5: Britain's Coutts subtly emphasizes its Authenticity, heritage and tradition 17

Figure 6: South Africa's ABSA taps into the Comfort Megatrend via its Look4me and Look4help services 20

Figure 7: AXA France has home insurance that offers complete care, targeting the cocooning trend 21

Figure 8: Saudi Arabia's Samba ensures Connectivity with a dedicated Islamic product suite 25

Figure 9: Australia's Bendigo Bank showcases its environmentally friendly credentials to target the Connectivity Megatrend 26

Figure 10: China's Bank of Beijing's Butterfly Club offering creates exclusivity and female Connectivity 28

Figure 11: UK direct bank Egg offers a convenient one-stop-shop money management solution 31

Figure 12: UAE's Mashreq Bank is explicitly targeting the Convenience Megatrend 32

Figure 13: UK aggregator moneysupermarket.com explicitly aims at a number of trends in the Convenience Megatrend 33

Figure 14: Spain's La Caixa offers personalization through a wide range of card design choices 35

Figure 15: Citigroup in the Czech Republic proposes a cycle of account management that targets the Individualism trend of self-reliance 36

Figure 16: Wellbeing's healthy nesting trend is brought up to date with Crédit Mutuel's insurance offering 38

Figure 17: Lincoln Financial helps consumers to help themselves with its Futureself idea 39

Figure 18: US insurer Nationwide cleverly targets the Demographic Complexity Megatrend with humor 41

Figure 19: Russia's Alpha Bank's Cosmopolitan card taps into gender stereotypes 42

Figure 20: International heavyweight Allianz uses its 'Women Money and Power Study' to demonstrate Demographic Complexity 43

Figure 21: First Direct embraces modern technology to help clients access information about financial products, thereby targeting increased consumer Financial Intelligence 46

Figure 22: US insurer Nationwide targets younger people's fear of pensions to help improve their Financial Intelligence 48

Figure 23: Austria's Erste Bank demonstrates Lifestage Complexity targeting through dedicated pages and packages for families, young adults, the over 40s and the over 60s 51

Figure 24: France's BNP Paribas has specific offerings for clients going through a divorce or separation, thus catering to the Lifestage Complexity Megatrend 53

Figure 25: American Express offers prestige and conspicuous consumption to meet the Wealth Complexity Megatrend 56

Figure 26: Australia's ANZ has a specific offering that caters to the Wealth Complexity trend of increased financial and physical mobility 57

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Financial Services Consumer Megatrends 2008

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