Brand Overview: Finance: Inc Impact Of COVID-19 - UK - August 2020

Brand Overview: Finance: Inc Impact Of COVID-19 - UK - August 2020

  • Mintel
  • August 2020
  • Banking
  • 0 pages

Report Description

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The coronavirus outbreak has accelerated the shift from cash to contactless payment as well as increasing the use of mobile banking, reinforcing the importance of technological innovations in the banking landscape. However, it is critical for brands to ensure that all their customers have sufficient digital literacy to access financial services and products though digital means, and if not provide the necessary support through more traditional communication channels. In contrast to the 2008/09 recession,

COVID-19 gives brands the opportunity to challenge negative assumptions about financial services institutions, highlighting their vital role in supporting individuals and the broader economy in a period of extreme economic uncertainty.

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Table of Contents

OVERVIEW

Key issues covered in this report
COVID-19: Market context
Economic and other assumptions
Products covered in this Report

EXECUTIVE SUMMARY
Impact of COVID-19 on financial services
Figure 1: Short, medium and long term impact of COVID-19 on financial services, August 2020
Consumers review their personal spending
COVID-19 challenges traditional payment methods …
 while increasing the use of mobile banking
COVID-19: a different recession
Brand Leaders
Price comparison websites are widely used
Figure 2: Top ranking of brands in the financial services sector, by overall usage, November 2017-June 2020
Trust boosts brand loyalty
Figure 3: Top ranking of brands in the financial services sector, by agreement with “A brand that I trust”, November 2017-June 2020
Monzo’s customers are highly satisfied
Figure 4: Top ranking of brands in the financial services sector, by satisfaction (net of “good” and “excellent” responses), November 2017-June 2020
Consumers tend to prefer heritage brands
Figure 5: Top ranking brands in the financial services sector, by commitment (net by “It is a favourite brand” and “I prefer it over others), November 2017-June 2020
Post Office creates a bond with people
Figure 6: Top ranking brands in the financial services sector, by differentiation (net of “It is a unique brand” and “it is somehow different from other brands”), November 2017-June 2020
Brand Reputation
Helpful brands are also perceived as ethical
Figure 7: Top ranking of brands in the financial service sector, by agreement with “Ethical”, November 2017-June 2020
Invest in customer service to boost brand loyalty
Figure 8: Top ranking of brands in the financial services sector, by agreement with “A brand that has great customer service”, November 2017-June 2020
Bupa is seen as exclusive, but may benefit from becoming more accessible
Figure 9: Top ranking of brands in the financial services sector, by agreement with “Exclusive”, November 2017-June 2020
American Express is seen as prestigious
Figure 10: Top ranking of brands in the financial services sector, by agreement with “Prestigious”, November 2017-June 2020
Competence leads to trust
Figure 11: Top ranking of brands in the financial services sector, by agreement with “Competent”, November 2017-June 2020
The Financial Brandscape
Reward loyalty for longer-term success
Figure 12: Top ranking of brands in the financial service sector, by agreement with “A brand that rewards loyalty”, November 2017-June 2020
New brands more likely to be seen as progressive
Figure 13: Top ranking of brands in the financial services sector, by agreement with “Progressive”, November 2017-June 2020
Price comparison specialists more likely to be seen as helpful
Figure 14: Top ranking of brands in the financial services sector, by agreement with “helpful”, November 2017-June 2020

THE IMPACT OF COVID-19 ON FINANCIAL SERVICES CONSUMERS
COVID-19 hits the national economy hard
Figure 15: Consumer view on the impact of the COVID-19 outbreak on the UK economy and their own finances, 18 June – 24 June 2020
Consumers review their personal spending
Figure 16: Changes in personal financial situation and spending behaviours as result of the COVID-19 outbreak, 21 May - 28 May 2020
25-54s and households with children worry about the year ahead
Figure 17: Consumers’ financial confidence for the coming year, July 2020
COVID-19 pushes emergency savings
A good time to aid money management
Loans may become an option for many
COVID-19 challenges traditional payment methods …
Figure 18: Proportion of people trying to avoid using cash where possible as result of the COVID-19 outbreak, 26 March-16 April 2020
including when going overseas
Time to show the benefits of mobile banking
COVID-19: a chance to change perceptions of the industry

BRAND LEADERS – KEY TAKEAWAYS
Price comparison websites are widely used
Monzo’s customers are highly satisfied
Admiral and LV= support their customers throughout the pandemic

BRAND USAGE
Price comparison websites are widely used
Figure 19: Top ranking of brands in the financial services sector, by overall usage, November 2017-June 2020
Post Office is the most used brand in the last year
Figure 20: Top ranking of brands in the financial services sector, by usage in the last 12 months, November 2017-June 2020

TRUST IN FINANCIAL SERVICES BRANDS
Trust boosts brand loyalty
Figure 21: Top ranking of brands in the financial services sector, by agreement with “A brand that I trust”, November 2017-June 2020
Prevent confusion to boost consumer trust

SATISFACTION AND RECOMMENDATION
Monzo’s customers are highly satisfied
Figure 22: Top ranking of brands in the financial services sector, by satisfaction (net of “good” and “excellent” responses), November 2017-June 2020
Convenience encourages excellent reviews
Figure 23: Top ranking of brands in the financial services sector, by excellent reviews, November 2017-June 2020
Smaller brands tend to earn better reviews
PayPal Credit can appeal to new online shoppers
Figure 24: Top ranking in the financial services sector, by likely recommendation, November 2017-June 2020

BRAND PREFERENCE
Consumers prefer heritage brands
Figure 25: Top ranking brands in the financial services sector, by commitment (net by “It is a favourite brand” and “I prefer it over others), November 2017-June 2020
FCA introduces temporary COVID-19 measures
Admiral and LV= support their customers throughout the pandemic

BRAND DIFFERENTIATION
Post Office creates a bond with people
Figure 26: Top ranking brands in the financial services sector, by differentiation (net of “It is a unique brand” and “it is somehow different from other brands”), November 2017-June 2020
Revolut targets more generations at once

BRAND REPUTATION – KEY TAKEAWAYS
MasterCard offers a fluid approach to identity
Make digital banking accessible to everyone
New brands lack the perception of reliability

ETHICAL BRANDS
Helpful brands are also perceived as ethical
Figure 27: Top ranking of brands in the financial service sector, by agreement with “Ethical”, November 2017-June 2020
Animal Friends puts animal welfare first
MasterCard offers a fluid approach to identity

CUSTOMER SERVICE
Invest in customer service to boost brand loyalty
Figure 28: Top ranking of brands in the financial services sector, by agreement with “A brand that has great customer service”, November 2017-June 2020
Make digital banking accessible to everyone

PRESTIGE AND PREMIUM BRANDS
Bupa is seen as exclusive …
Figure 29: Top ranking of brands in the financial services sector, by agreement with “Exclusive”, November 2017-June 2020
 but may benefit from becoming more accessible post-COVID
American Express is seen as prestigious
Figure 30: Top ranking of brands in the financial services sector, by agreement with “Prestigious”, November 2017-June 2020

COMPETENCY AND RELIABILITY
Competence leads to trust
Figure 31: Top ranking of brands in the financial services sector, by agreement with “Competent”, November 2017-June 2020
New brands lack the perception of reliability
Figure 32: Top ranking of brands in the financial services, by agreement with “reliable”, November 2017-June 2020

THE FINANCIAL SERVICES BRANDSCAPE – KEY TAKEAWAYS
Tesco Bank offers unique rewards
Starling Bank launches its Connected Card
COVID-19 puts pressure on banks

LOYALTY AND SWITCHING IN FINANCIAL SERVICES
Reward loyalty for longer-term success
Figure 33: Top ranking of brands in the financial service sector, by agreement with “A brand that rewards loyalty”, November 2017-June 2020
CompareTheMarket treats its customers
Tesco Bank offers unique rewards

PROGRESSIVENESS IN FINANCIAL SERVICES
New brands more likely to be seen as progressive
Figure 34: Top ranking of brands in the financial services sector, by agreement with “Progressive”, November 2017-June 2020
Starling Bank launches its Connected Card

HELPING CONSUMERS
Price comparison specialists more likely to be seen as helpful
Figure 35: Top ranking of brands in the financial services sector, by agreement with “helpful”, November 2017-June 2020
COVID-19 puts pressure on banks to assist

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations

APPENDIX – BRAND USED

 

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