Brand Values in UK Personal Lending

Table of Contents

DATAMONITOR VIEW

• CATALYST
• SUMMARY

ANALYSIS

• The downturn has placed an emphasis on reducing advertising expenditure
  • The credit crunch has severely affected the personal loan market
  • Global brand strengths have fallen significantly in light of the worsening financial situation
  • A combination of changing market dynamics and lower liquidity levels have forced personal loan advertising expenditure downwards
  • Lenders have been more affected in the secured market.

• Innovative customer targeting will reap significant rewards despite the bleak outlook
  • To drive brand values at minimal costs banks need to appeal to consumers' recessionary mindsets
  • Targeting and promoting self-service products will appeal to the Financial Intelligence Complexity
  • Effective advertising should focus on safety and functionality to lessen consumer worries
  • Services and products need to satisfy the Authenticity Megatrend
  • Adopting a more friendly advisory and assistance based approach to customers develops better customer relationships
  • A more personalized approach to product offerings is a win-win for banks

APPENDIX

• Supplementary data
• Definitions
  • Balances outstanding
  • CMGR
  • Gross advances
  • Secured personal loans
  • Unsecured personal loans

• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

TABLES

• Table: The top 10 global brand values, 2008
• Table: The top 10 personal loan advertisers, 2007- 08
• Table: Personal loan gross advances and balances outstanding, January 2007- September 2008
• Table: Total UK advertising expenditure by product line, 2004- 08
• Table: Total UK advertising expenditure in 2008, H1 2008- H2 2008

FIGURES

• Figure: Unsecured personal loan advances have been falling while balances outstanding have grown, January 2007- September 2008
• Figure: Total financial services advertising expenditure fell by 15.8% in 2008, 2004- 08
• Figure: Total advertising dropped by 22.4% throughout the second half of 2008
• Figure: Recessionary consumers' behavior is affected by a number of basic drivers and inhibitors
• Figure: Bank of Scotland' s website provide a comprehensive source of information for borrowers, 2009
• Figure: Online price comparison sites and banks are the most trusted financial institutions, 2008
• Figure: First Direct' s ' Enthuse' service explains products pure and simple, 2009
• Figure: Virgin Money' s homepage illustrates how the bank can help simplify financial services, 2009