Overview 1
Catalyst 1
Summary 1
Methodology 1
Table of Contents 2
Table of figures 3
Table of tables 4
Introduction 5
Customer segmentation is vital for an effective marketing strategy 5
The recessionary environment is forcing providers to make tough decisions 5
Identifying fads as opposed to long term trends is important 5
Conscientious consumers are a valuable target for providers 6
The Future Decoded 7
Trend: Lower numbers of Conscientious consumers have emerged than expected 7
Insight: Financial pressures do not dictate Conscientious behavior 8
Conscientious consumers are found in the fastest growing emerging markets 9
Higher number of Conscientious consumers in China are due to reinforced confidence about the state of their economy relative to others and builds on cultural foundation of prudence 9
Russia has disproportionately few Conscientious consumers compared to other emerging economies 11
Insight: Demographic and lifestage findings have had some bearing on the emergence of Conscientious behavior 12
The emergence of Conscientious behavior has been more prevalent amongst younger Accumulators 12
Australia has a surprising number of older Conscientious consumers 13
Japan has no young or old Conscientious consumers 13
Employment status has also influenced the emergence of more conscientious behaviour 14
Australia contains significantly more recently unemployed Conscientious consumers than elsewhere 15
Demographic and lifestage influence should not be overstated 16
Trend: Conscientious consumers have a greater appetite for FS products than the average consumer 17
Conscientious consumers in the UK are particularly receptive to instant access savings accounts 19
Notice savings accounts in India are more popular than elsewhere 20
Life insurance is relatively unpopular in Australia 21
Credit cards are most popular amongst Conscientious consumers in Japan, Singapore and the US 22
Insight: Though seemingly debt-averse, Conscientious consumers have more credit cards than the average consumer 23
Conscientious consumers favor pre-paid cards more than most 24
Conscientious consumers are predictably attracted to savings and insurance products 24
Conscientious consumers are likely to be regular savers 24
Conscientious consumers have more pensions and life insurance as well as travel, home and health (etc) insurance 24
Insight: Conscientious consumers are financially intelligent 24
Conscientious consumers apply financial intelligence to their product choices, and are keen to shop around 25
Conscientious consumers are also price-driven 26
'Conscientious' does not mean 'risk-averse' 26
Conscientious consumers in all countries are financially aware 26
Conscientious consumers in the US are more Conscientious than others 26
Conscientious consumers in Australia, Japan and Singapore are actually slightly less financially intelligent than average 27
Brazilian and Indian Conscientious consumers are at odds in terms of financial awareness 28
Insight: Conscientious consumers still have higher than average product holdings with their primary bank and represent a key cross-selling opportunity 29
Conscientious consumers in France are by far the most loyal to their primary bank 30
There is still an opportunity for non-primary bank providers to capture share of the Conscientious wallet 31
Insight: Conscientious consumers are more trusting than the average consumer 32
Conscientious consumers have had less negative experiences 32
Conscientious consumers in different countries feel different about governmental and bank responses to the crisis 33
Conscientious consumers in the UK and US feel very differently about the way the crisis has been handled by their banks 34
Conscientious consumers in China and Singapore are positive about governmental control and confident that their banks are protecting their money 34
Insight: Conscientious consumers are receptive to financial advice through a wide variety of sources 35
Conscientious consumers can afford professional advice but still shop around for the best deals 35
For new players entering the industry, proof of financial stability is vital 36
The Conscientious segment are particularly drawn to products with green or ethical credentials 37
Conscientious consumers in all countries like a wide variety of sources of advice available to them, but cross-country preferences differ 37
Conscientious consumers in the US are comfortable making their decisions through online research rather than using other sources of advice 37
Australian Conscientious consumers are comfortable with their financial decisions despite not being overly receptive to advice 38
Chinese CC's are receptive to all forms of advice 39
Trend: Conscientious consumers are optimistic about the future 40
Conscientious consumers have had a better than average experience over the last 12 months 40
Insight: Conscientious consumers' future actions are aligned with their positivity 41
Conscientious consumers intend to pay more into their savings but cut back on insurance premiums 42
Conscientious consumers also plan to maintain their quality of life 43
Conscientious consumers in all countries are disinclined to spend more money in the future but attitudes towards savings for the short-term and investing for the long-term vary 44
Australian and German Conscientious consumers would rather focus on long-term rather than short-term savings 44
Conscientious consumers in the UK are still disinclined to save for either the short- or long-term 44
Action Points 46
Action: Emerging markets can provide valuable lessons for FS providers 46
Action: Target Conscientious consumers with innovative regular savings products 47
Financial stability is of biggest importance to the Conscientious segment 48
Do not offer them high cost / low risk products 48
Action: Datamonitor's Megatrend Framework can help identify strategies for targeting this segment 49
Target Conscientious consumers through the Comfort Megatrend 49
Conscientious consumers desire elements of the Connectivity Megatrend in their financial needs 50
Harness new connective technology 50
Experiment more boldly with Web 2.0 technology 50
Ethical consumerism is a key component of the Connectivity Megatrend 52
Capture Conscientious consumers through highlighting the Convenience of the offering 53
APPENDIX 54
Data tables 54
Methodology 74
Definitions 75
The Datamonitor Financial Services Consumer Insight Megatrend Framework 75
Authenticity 75
Comfort 75
Connectivity 75
Convenience 75
Individualism 75
Wellbeing 76
Demographic Complexity 76
Financial Intelligence Complexity 76
Lifestage Complexity 76
Wealth Complexity 76
Further reading 76
Ask the analyst 77
Datamonitor consulting 77
Disclaimer 77
List of Tables
Table 1: Conscientious and Non Conscientious consumers segmented by country 54
Table 2: Degree to which household financial situation has worsened over the last 12 months versus percentage of Conscientious consumers, segmented by country 55
Table 3: Conscientious consumers segmented by age 55
Table 4: Conscientious consumers segmented by age and country 56
Table 5: Conscientious consumers segmented by employment status 56
Table 6: Conscientious consumers segmented by employment status and country 57
Table 7: Average product holding amongst Conscientious and global consumers 58
Table 8: Product holdings amongst Conscientious and global consumers (those with two or more) 59
Table 9: Instant access savings holdings amongst Conscientious consumers, segmented by country 60
Table 10: Notice savings account holdings amongst Conscientious consumers, segmented by country 61
Table 11: Life insurance holdings amongst Conscientious consumers, segmented by country 62
Table 12: Credit card holdings amongst Conscientious consumers, segmented by country 63
Table 13: Indicators of financial intelligence amongst Conscientious and global consumers 64
Table 14: Indicators of financial intelligence amongst Conscientious consumers, segmented by country 65
Table 15: Non current account primary bank product holdings amongst Conscientious and global consumers 66
Table 16: Non current account primary bank product holdings amongst Conscientious consumers, segmented by country 67
Table 17: Products held with primary bank amongst Conscientious and global consumers 68
Table 18: Indicators of trust amongst Conscientious and global consumers 69
Table 19: Opinion of bank handling of the crisis and governmental intervention amongst Conscientious consumers, segmented by country 70
Table 20: Steps before making financial decisions amongst Conscientious and global consumers 71
Table 21: Steps before making financial decisions amongst Conscientious consumers, segmented by country 72
Table 22: Expectations for the future amongst Conscientious and global consumers 73
Table 23: Actions over the next six months among Conscientious and global consumers 73
Table 24: Actions over the next six months among Conscientious consumers, segmented by country 74
List of Figures
Figure 1: Lower numbers of Conscientious consumers have emerged than expected 7
Figure 2: Financial pressures do not dictate Conscientious behavior 8
Figure 3: The emergence of Conscientious behavior has been more prevalent amongst younger Accumulators 13
Figure 4: Australia has a surprising number of older Conscientious consumers 14
Figure 5: Employment status has also influenced the emergence of more conscientious behaviour 15
Figure 6: Australia contains significantly more Conscientious consumers who are recently unemployed than elsewhere 16
Figure 7: Conscientious consumers have a greater appetite for FS products than the average consumer 18
Figure 8: Conscientious consumers are almost doubly likely to have two or more of each product than the average global consumer 19
Figure 9: Conscientious consumers in the UK are particularly receptive to instant access savings accounts 20
Figure 10: Notice savings accounts in India are more popular than elsewhere 21
Figure 11: Life insurance is relatively unpopular in Australia 22
Figure 12: Credit cards are most populat amongst Conscientious consumers in Japan, Singapore and the US 23
Figure 13: Conscientious consumers are financially intelligent 25
Figure 14: Conscientious consumers in the US are more Conscientious than others 27
Figure 15: Conscientious consumers in Australia, Japan and Singapore are actually slightly less financially intelligent than average 28
Figure 16: Brazilian and Indian Conscientious consumers are at odds in terms of financial awareness 29
Figure 17: Conscientious consumers have higher than average product holdings with their primary bank 30
Figure 18: Conscientious consumers in France are by far the most loyal to their primary bank 31
Figure 19: There is still an opportunity for non-primary bank providers to capture share of the Conscientious wallet 32
Figure 20: Conscientious consumers are more trusting than the average consumer 33
Figure 21: Conscientious consumers in the UK and US feel very differently about the way the crisis has been handled by their banks 35
Figure 22: Conscientious consumers can afford professional advice but still shop around for the best deals 36
Figure 23: Conscientious consumers in the US are comfortable making their decisions through online research rather than using other sources of advice 38
Figure 24: Australians are not keen to take advice from family and friends 39
Figure 25: Conscientious consumers in Brazil are most confident in seeking advice from their primary bank 40
Figure 26: Conscientious consumers' are optimistic about the future 41
Figure 27: Conscientious consumers intend to pay more into their savings but cut back on insurance premiums 43
Figure 28: Conscientious consumers in the UK are still disinclined to save for either the short- or long-term 45
Figure 29: SmartyPig has created an innovative savings platform 48
Figure 30: ING Direct has employed innovate use of Web 2.0 technology 51
Figure 31: SmartyPig has also harnessed Web 2.0 and social networking to appeal through Connectivity 52
Figure 32: Virgin's Climate Change ISA is a prime example of ethical and green credentials 53