UK Savings 2014: Forecasts and Future Opportunities
Years of below-nflation wage rises have adversely affected UK consumers' ability to save. At the same time, a recovery in consumer confidence has prompted a declining propensity to save. Consequently, retail deposits will grow at a modest CAGR of 4.0% during 2014-8, compared to 8.2% during 2000-7. Banks will have to use new strategies if they want to significantly grow this source of funding.
-nform your future plans with our five-ear forecast for retail deposits.
-earn how to respond to consumers' attitudes towards saving and personal finance.
-iscover what impact new products, innovations, and strategies will have on the savings market.
Reasons To Buy
-hat strategies will be most effective in attracting new retail deposits?
-hich new savings innovations are being introduced to the market?
-ow much of an impact will regulatory developments have on the operation of the UK savings market?
Consumers who plan ahead and have a preference for mobile banking are more likely than average to save. Those who struggle to manage their finances effectively are significantly less likely to save. Banks can cater for the latter through measures such as login-ree transfers to savings accounts and alerts that warn users of excessive spending.
New innovations are coming to the aid of savers. RBS has refined its Savings Goal feature to offer guidance to those who are falling short of their goals. In the US, Digit is a new service that analyzes users' bank accounts and automatically moves appropriate amounts into a savings account every few days.
In order to reduce costs and pre-mpt regulatory intervention, several providers are rationalizing their product ranges and significantly reducing the number of accounts on offer. Many banks have also stopped the practice of offering bonus rates for a limited period, in order to become more transparent and customer-riendly.