Summary The savings market is facing significant challenges at present. Low interest rates and pressures on household budgets are reducing both the inclination and ability of many consumers to save, and the market is becoming increasingly fragmented with respect to savings-related behaviour. Providers will have to take these factors into account when developing their strategies.
Synopsis - Learn what strategies will be most effective for acquiring and retaining both higher value and lower value savers. - Understand what factors are driving consumer behavior in the savings channel. - Analyze how the UK's retail deposits are distributed by type of provider and type of account.
Reasons To Buy - What strategies should you employ to attract high value and low value savers? - How do the factors driving savings behavior vary across different consumer segments? - What are consumers' main priorities and concerns with respect to their savings?
Key Highlights Committed financial planners have eight times the cash savings of non-planners. Three-quarters of committed planners rate building or maintain their savings as their top financial priority, while only half of non-planners do so.
The proportion of new savings accounts opened online exceeded the proportion opened in-branch for the first time in 2011, and the gap is widening. In 2012, just one third of new accounts were opened in-branch, compared to nearly six in 10 online.
Different consumer segments have experienced differing fortunes. Of those with more than £2,000 in savings, nearly half have managed to increase the balance of their main savings account over the past six months, compared to just a quarter of those with less than £2,000.