Credit and Loan in United Kingdom: Retail Banking 2011: Product Innovations From Around The Globe

• Publication date: November 2011

The challenging conditions of the last few years have had a huge impact on UK banks, arguably distracting them from the task of devising new and innovative products for consumers. However, banks need to focus on new product development in order to gain a competitive advantage. They can learn from overseas providers, who are often more inventive than their UK counterparts....

The challenging conditions of the last few years have had a huge impact on UK banks, arguably distracting them from the task of devising new and innovative products for consumers. However, banks need to focus on new product development in order to gain a competitive advantage. They can learn from overseas providers, who are often more inventive than their UK counterparts.Provides examples of particularly innovative financial products from abroad from which UK providers can take inspiration.Analyzes the impact that adoption of these concepts will have on the UK industry, with respect to consumer behavior and perceptions.Showcases how overseas banks are responding and adapting to changing consumer needs and expectations.Mobile payment technology is rapidly evolving and is growing in popularity. Commonwealth Bank in Australia has brought out Kaching, a mobile application which lets users make payments to phone number, Facebook and email contacts. It also allows contactless payments at selected retailers through the use of an NFC-enabled handset sleeve.Financial providers are starting to experiment with social media in an effort to engage with their customers. ASB Bank in New Zealand was the first in the world to launch a “virtual branch” on Facebook, where customers and non-customers alike can conduct real time chats with specialist advisors.The provision of added-value services can help to promote “customer delight” and strengthen the relationship between bank and user. CIBC in Canada has a smartphone application that helps house hunters by allowing them to save photos and property details for later comparison, research house prices and neighborhood market research report s, and view advice articles.What new innovations have overseas banks brought to industry ?What role can such products and services play in improving customer take over, retention, and profitability?How can the latest technologies improve the customer experience?

Global Credit And Loan Industry

OVERVIEW
•Catalyst
•Summary
ANALYSIS
•The financial services segment remains in a subdued state
?Unsecured personal lending activity has stabilized following several years of contraction
?The mortgage industry continues to flatline
?Financial providers need to start preparing for the future
•Personal lending
?Education and tuition fee loans
?Flexible loans
?Niche industry loans
•Payments
?Mobile payment solutions
•Online banking
?Offering fully integrated financial management solutions
?Leveraging social media
?Offering subsidized technology
•Mortgages
?Provision of added-value services
?Using technology to improve the application process
APPENDIX
•Supplementary data
•Methodology
•Further reading
•Ask the analyst
•Disclaimer

TABLES
•Table: Gross advances on unsecured personal lending in the UK (£m)

FIGURES
•Figure: Unsecured gross advances have steadied at a low level over the past 18 months
•Figure: Gross mortgage lending has sharply contracted during the downturn
•Figure: OCBC in Singapore offers a range of repayment options on its education loans
•Figure: Commonwealth Bank is grow ing the capabilities of mobile banking
•Figure: Linea Abierta from La Caixa lets users monitor and manage all aspects of their finances
•Figure: ASB Bank is pioneering a "virtual branch" on Facebook
•Figure: FNB is offering discounted smartphones and tablets to some of its customers
•Figure: CIBC customers can now view property information on the go
•Figure: UBank allows all supporting documentation for mortgage applications to be submitted online

Companies mentioned
Bank of England, Bank of India, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, CMS Energy Corporation, Hutchison 3G UK Limited, Mediobanca - Banca di Credito Finanziario S.p.A., National Australia Bank Group Limited, Research In Motion Limited, Shanks Group plc, Wolters Kluwer nv