Aggregation Metrics: Consumer Attitudes towards Online Aggregation and Broking of Financial Services in France

Finaccord’s report titled Aggregation Metrics: Consumer Attitudes towards Online Aggregation and Broking of Financial Services in France offers detailed and unique insights into the behaviour of French consumers in the context of financial services distribution with a particular focus on the prospects for online aggregation and broking. Based on a primary survey of over 1,000 consumers in France carried out between July and August 2008, the research provides robust and valuable data describing the way in which consumers’ use of distribution interfaces and channels is changing when they acquire financial services. In addition to investigating the extent to which consumers in France acquire banking or insurance products via the Internet at all, the research also analyses the degree to which they compare product prices and characteristics prior to buying and the number of websites they typically visit for this purpose. Moreover, for each of mortgages, personal loans, motor insurance and household insurance, it provides annual churn data and detailed distribution interface and channel analyses to illustrate the future potential of both on-line aggregation and broking, and alternative distribution systems.

Furthermore, the report measures the consumer recognition rates achieved by leading online aggregators and brokers in France, and how these compare to the online brands of major direct providers, and also considers the extent to which consumers in France are aware of and / or value the fundamental concepts of online aggregation and broking. Key features of the report include: insight into the propensity of French consumers to buy goods and services online, including segmentation of customers for online financial services; analysis of how consumers in France use the Internet for financial services including how they use it for research as well as for buying online, how many websites they visit before taking out banking or insurance products, and whether their choice of website is influenced by its status as the online shop window of a bank or insurance company (ie. the ultimate provider), an aggregator or a broker; brand recognition of 20 financial websites in France including those of the leading direct providers of banking and insurance products as well as those of the most prominent aggregators and / or brokers; benchmarks for the distribution of four key products in France (mortgages, personal loans, motor insurance and household insurance), measuring the segmentation of sales by distribution channel and by interface, and how this is changing over time; overall summary of the apparent attractiveness of markets for online aggregation and broking, comparing sales by brokers against sales via the Internet and their rates of change in France. SHOW LESS READ MORE >

0.0 EXECUTIVE SUMMARY
French consumers are reluctant to research or acquire financial services online
… although there are variances in behaviour by gender, age group and household income
For both banking and insurance, two-thirds of online consumers use three to five websites
Rapid growth in Internet sales
… has helped tied intermediaries such as supermarkets and bancassurers more than brokers
Switchers out-number new customers for insurance, increasing the target customer base
Direct providers’ websites have much higher recognition rates than aggregators and brokers…
… although many consumers appreciate that aggregators and brokers offer something different…
… so a continued trend towards Internet distribution should increase the size of this market

1.0 INTRODUCTION
Finaccord
European consumer research
Aggregation
European market, partnership and bancassurance research
Research rationale
Online aggregation is having a major impact on financial services distribution
Interest in online aggregation is not limited to traditional providers of consumer financial services
The growth and influence of Confused.com and Moneysupermarket.com are beyond dispute
… although the UK now endures a surplus of competitors in online aggregation and broking
Heavy spending on advertising has helped the industry leaders to stay ahead of the pack
Online intermediaries in France have opened branches because most sales are made face-to-face
The Aggregation Metrics research has been structured to test the appetite of consumers in Europe

2.0 SURVEY ANALYSIS
Introduction
Consumer propensity to purchase via the Internet
While nearly three-quarters of consumers in France have bought clothing online…
…less than a quarter of respondents have acquired insurance via the Internet
There is wide potential for online marketing and partnership programmes
Propensity to research and take out financial products over the Internet
Banking products
Just over a third of consumers use the Internet to research and / or take out banking products
Consumer propensity to research and take out banking products over the Internet in France, 2008
There is a clear link between longevity of Internet usage and online acquisition of banking products
Insurance products
Two-thirds of French consumers neither research nor buy insurance over the Internet
Use of the Internet to both research and acquire insurance varies among consumer groups
Comparison with European average
Number of websites visited prior to taking out financial products online
Banking products
Online customers are most likely to solicit details for banking products on three occasions…
Insurance products
… for insurance as well as banking
Mortgages
Switching rates and brand new loans
Analysis of distribution interfaces used
Face-to-face distribution is losing share to the Internet and telephone…
Analysis of distribution channels used
… to the detriment of direct lenders
Personal loans
Switching rates and brand new loans
Analysis of distribution interfaces used
Trend away from face-to-face transactions is much less marked for personal loans…
Analysis of distribution channels used
… and direct distribution remains the dominant channel
Comparison of distribution channels used by offline and online customers
Loan brokers are strongest amongst online customers
Motor insurance
Switching rates and brand new sales
Analysis of distribution interfaces used
Sales of motor insurance via the Internet are rising at the expense of phone and face-to-face sales
Analysis of distribution channels used
Banks have doubled their share of motor insurance sales…
Comparison of distribution channels used by offline and online customers
… though insurance brokers have gained most from the shift towards Internet distribution
Household insurance
Switching rates and brand new sales
Analysis of distribution interfaces used
Internet’s share of household insurance sales has tripled in the past year…
Analysis of distribution channels used
… with direct insurers losing sales to most other distribution channels
Summary of market attractiveness for online aggregators and brokers
Growth in online sales is offset by relatively limited use of brokers for consumer financial services
Switching increases the market available for aggregators and brokers
Switchers out-number new customers for motor and household insurance
Online aggregators and brokers of financial services
Recognition rates
Few online aggregators or brokers achieve consumer recognition rates in excess of 20%
Consumer understanding of aggregation and broking concepts
Brokers of financial services
Consumers show a similar level of understanding of the basic definition of brokers…
Aggregators of financial services
… as they do for aggregators

3.0 APPENDIX
Research sample
The research embraces a total of 1,005 respondents in France
Research questionnaire

Graphics/Tables