Table of Contents
- Issues in the Market
- Scope of the report
- Insights and Opportunities
- There are clear opportunities for general insurers to exploit
- Allaying security fears would help stimulate online activity
- Search engine optimisation is the key to successful online marketing
- Keen pricing is likely to remain a feature of Internet shopping...
- ...although heavy online discounting may not be inevitable
- Report in Brief
- Rising Internet penetration is boosting online financial services
- The Internet is an effective way to target affluent consumers
- Mintel' s research findings: Online product ownership
- Mintel' s research findings: Purchasing behaviour
- Mintel' s research findings: The importance of price
- Mintel' s research findings: Attitudes towards online products
- Background
- Key points
- Major structural changes have altered the pattern of distribution
- The direct-sell revolution was the catalyst for change...
- ...but development of the Internet has accelerated this change
- Online financial services have a number of inherent advantages
- The Internet is one part of a multichannel strategy
- Market Factors
- Key points
- Rising Internet penetration is boosting online financial services
- Figure 1: British Internet penetration at home/work/place of study or
elsewhere, by gender, socio-economic group, age, region and working status,
2001-06
- An increase in the range of access routes will also boost usage
- The sharp rise in broadband connections will also be significant
- Figure 2: Broadband Internet connections in the UK, 2001-06
- Changing lifestyles are impacting on access requirements
- The Internet is performing an increasing role in people' s lives
- A number of potential market barriers are also being tackled...
- ...although security fears continue to act as a drag on the market
- Steps are being taken, but more needs to be done to allay consumer fears
- Online User Profile
- Key points
- The Internet is an effective way to target affluent consumers
- Figure 3: British Internet usage profile, by gender, socio-economic
group, age and working status, October 2006
- Consumers now conduct a broad range of activities online
- Figure 4: Types of activity undertaken on the Internet in the last three
months, 2003-06
- Finance news sites offer little appeal for online browsers
- Figure 5: Websites browsed for information purposes in the last three
months, 2002-06
- Insurance and banking sites attract a rising flow of potential buyers
- Figure 6: Websites browsed for information purposes with a view to
possibly buying in the last three months, 2002-06
- Financial sector still lags behind in terms of online purchases
- Figure 7: Websites actually purchased from in the last three months,
2002-06
- Trade Perspective
- Internet sales have increased strongly in the last few years
- The Internet provides businesses with a range of benefits
- Convenience and cost are the key benefits to the consumer
- It allows customers to shop around; but not all are price-sensitive
- Future growth in Internet sales seems assured
- The Consumer -- Online Product Ownership
- Key points
- Survey background
- Almost a third of all adults can access their current account online
- Figure 21: Proportion of adults who have finance accounts registered
online, November 2006
- Two thirds of heavy Internet users hold online financial accounts
- Figure 22: Proportion of adults who have finance accounts registered
online, by Internet usage, November 2006
- More than half of ABs and 25-34s can access their finances online
- Figure 23: Proportion of adults who have finance accounts registered
online, by gender, age, socio-economic group, lifestage and Mintel' s Special
Groups, November 2006
- High earners are most likely to hold online financial accounts
- Figure 24: Proportion of adults who have finance accounts registered
online, by working status, income, TV region and ACORN category, November
2006
- Over half of all broadsheet readers manage their finances online
- Figure 25: Proportion of adults who have finance accounts registered
online, by technology usage, newspaper readership, commercial TV viewing and
supermarket usage, November 2006
- A fifth of ABs can access investment products online
- Figure 26: Proportion of adults who have selected finance accounts
registered online, by gender, age, socio-economic group, lifestage and
Mintel' s Special Groups, November 2006
- More than half of all high earners hold an online savings account
- Figure 27: Proportion of adults who have selected finance accounts
registered online, by working status, income, TV region and newspaper
readership, November 2006
- One in 12 consumers have online access to four or more products
- Figure 28: Number of financial product types registered for online
access, November 2006
- Almost half of ABs are multiple online financial account holders
- Figure 29: Number of financial product types registered for online access,
by gender, age and socio-economic group, November 2006
- Online current accounts dominate the single-product group
- Figure 30: Repertoire analysis on financial products registered online,
November 2006
- Lloyds TSB and HBOS have the most online account holders
- Figure 31: Companies online finance accounts are held with, November 2006
- Young adults are more likely to hold accounts with the ' big five'
- Figure 32: Main types of providers online finance accounts are held
with, by gender, age, socio-economic group, working status and income,
November 2006
- Internet banks have the potential to generate cross-sales
- Figure 33: Type of online financial accounts held by customers of the
main types of provider, November 2006
- Lloyds TSB and Barclays have the highest concentration of ABC1s
- Figure 34: Online customer profiles of the ' big five' clearing banks, by
gender, age and socio-economic group, November 2006
- Four in ten Internet users would manage all their accounts online
- Figure 35: ' Can imagine a time when I manage all my financial accounts
over the Internet' , November 2006
- Over half of ABC1 18-34 Internet users would run all their finances online
- Figure 36: ' Can imagine a time when I manage all my financial accounts
over the Internet' , by gender, age, socio-economic group and
age/socio-economic group, November 2006
- Most heavy Internet users can imagine running their accounts online
- Figure 37: ' Can imagine a time when I manage all my financial accounts
over the Internet' , by lifestage, TV region, Internet usage and newspaper
readership, November 2006
- The Consumer -- Purchasing Behaviour
- Key points
- Motor insurance is the most common financial online purchase
- Figure 38: Proportion of adults who have arranged financial products
online in the last 12 months, November 2006
- Four in ten Internet users bought financial products online
- Figure 39: Proportion of adults who have arranged financial products
online in the last 12 months, by Internet usage, November 2006
- The 45-54s form a key target audience for online travel policies
- Figure 40: Proportion of adults who have arranged financial products
online in the last 12 months, by gender, age, socio-economic group,
lifestage and Mintel' s Special Groups, November 2006
- Almost six in ten high earners bought financial products online
- Figure 41: Proportion of adults who have arranged financial products
online in the last 12 months, by working status, income, TV region and
newspaper readership, November 2006
- One in seven adults bought two or more products online last year
- Figure 42: Number of financial products arranged online in the last 12
months, November 2006
- Over a quarter of ABs and 25-34s made multiple online purchases
- Figure 43: Number of financial products arranged online in the last 12
months, by gender, age and socio-economic group, November 2006
- The Internet offers online insurers a chance to boost cross-sales
- Figure 44: Repertoire analysis on financial products arranged online,
November 2006
- Search engines provide a key source of Internet business
- Figure 45: Types of websites used when arranging online financial
purchases, by gender, November 2006
- Younger consumers are most likely to use search engines
- Figure 46: Types of websites used when arranging online financial
purchases, by age group, November 2006
- ABs tend to use the broadest range of websites
- Figure 47: Types of websites used when arranging online financial
purchases, by socio-economic group, November 2006
- Almost 19 million consumers can see themselves buying online
- Figure 48: Proportion of adults who might arrange financial products via
the Internet in the future, November 2006
- Six in ten 18-34s might buy a financial product online
- Figure 49: Proportion of adults who might arrange financial products via
the Internet in the future, by gender, age, socio-economic group, lifestage
and Mintel' s Special Groups, November 2006
- Three in ten in the ABC1 family group might buy home cover
- Figure 50: Proportion of adults who might arrange insurance policies via
the Internet in the future, by gender, age, socio-economic group, lifestage
and Mintel' s Special Groups, November 2006
- One in seven 25-34-year-olds would apply for a credit card online
- Figure 51: Proportion of adults who might arrange other financial
products via the Internet in the future, by gender, age, socio-economic
group, lifestage and Mintel' s Special Groups, November 2006
- The Consumer -- The Importance of Price
- Key points
- The Internet is encouraging shoppers to be price-conscious
- Figure 52: ' More likely to compare prices when buying or browsing
online' , November 2006
- The 25-34s are most likely to compare prices when buying online
- Figure 53: ' More likely to compare prices when buying or browsing
online' , by gender, age, socio-economic group and age/socio-economic group,
November 2006
- Heavy Internet users tend to be more inclined to compare prices
- Figure 54: ' More likely to compare prices when buying or browsing
online' , by lifestage, TV region, Internet usage and newspaper readership,
November 2006
- Online financial purchasers are particularly price-conscious
- Figure 55: ' More likely to compare prices when buying or browsing
online' , by online financial purchasing behaviour, November 2006
- Half of Internet users would only buy discounted products online
- Figure 56: ' Would only buy online if the products are discounted' ,
November 2006
- Young adults are most expectant of online discounts
- Figure 57: ' Would only buy online if the products are discounted' , by
gender, age, socio-economic group and age/socio-economic group, November 2006
- Most popular tabloid readers demand better rates online
- Figure 58: ' Would only buy online if the products are discounted' , by
lifestage, TV region, Internet usage and newspaper readership, November 2006
- Only a third of online savers demand preferential rates
- Figure 59: ' Would only buy online if the products are discounted' , by
online financial purchasing behaviour, November 2006
- Convenience rather than price is widely seen as the key benefit
- Figure 60: Advantages of arranging finances online, by gender, November
2006
- Heavy Internet users focus more on convenience than price
- Figure 61: Advantages of arranging finances online, by Internet usage,
November 2006
- Internet-exclusive offers are more likely to attract young adults
- Figure 62: Advantages of arranging finances online, by age group,
November 2006
- Three in ten ABs are attracted by cheaper products
- Figure 63: Advantages of arranging finances online, by socio-economic
group, November 2006
- The Consumer -- Attitudes towards Online Products
- Key points
- Allaying security fears could help stimulate online activity
- Figure 64: Factors which might persuade consumers to arrange their
finances online, by gender, November 2006
- Price incentives hold more sway with medium Internet users
- Figure 65: Factors which might persuade consumers to arrange their
finances online, by Internet usage, November 2006
- Improved security could have a big impact on 18-24s and 35-44s
- Figure 66: Factors which might persuade consumers to arrange their
finances online, by age group, November 2006
- Three in ten ABC1 non-subscribers expressed security fears
- Figure 67: Factors which might persuade consumers to arrange their
finances online, by socio-economic group, November 2006
- Only half of Internet shoppers have bought financial products online
- Figure 68: Attitudes towards the Internet and other service-delivery
channels, November 2006
- The Future
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