Mail in the personal finance sector

The UK's retail banking sector has changed dramatically since the financial crisis – Lloyds TSB now has nearly 30% of the market, while new entrants such as Tesco and Virgin are giving traditional banks a run for their money in the bid to sell consumers financial products and services.

This 2010 report by MMC provides a snapshot of the personal finance and retail banking sector, focusing on current accounts and financial advice. It identifies new marketing opportunities such as mobile banking, tailored packaged accounts, and using current accounts as a cross-selling platform. 

Using Nielsen, Mintel, TGI and Billetts data, the report also reveals which demographic is most likely to have a premium or packaged account and their response to direct mail. It also analyses monthly direct mail expenditure, its media share and response rates by gender, age and social class.

Key findings include:

• Face-to-face contact still matters to consumers – 79% of adults visit a branch to access their bank.

• Lloyds TSB now accounts for almost 30% of the market and Santander’s acquisitions have increased its share to 13%.

• The 16 to 24 age group receives just 1.2% of personal banking direct mail. There is a missed opportunity to reach this young audience at the time when they are choosing their first bank account.

• Adults with a premium/packaged current account have the largest number of financial products, and 55% have done something in the past 12 months as a result of the direct mail they’ve received.

• Adults who are interested in financial advertising are 120% more likely to agree that direct mail can change their opinion of a company or brand.