There is little love lost between established providers of financial products and consumers. But traditional retailers, in particular the big popular brands, are fast making inroads into financial services’ territory. Maureen Duffy warns that the takeover could be swift – and soon.
The market for financial services may be on the verge of a transformation. The High Street retailers, which have been building their presence in the market for some years, have the potential to break through to become major players.
Research by the Newspaper Marketing Agency demonstrates that retailers present a significant challenge to established players in the financial services industry, and could use the strength of consumers’
relationships with their already powerful brands to make a breakthrough.
The research, completed before the run on Northern Rock further undermined consumer confidence, showed that the finance sector as a whole is dogged by negative perceptions and consumers’ lack of trust. In contrast, consumers regard their regular retailers as trustworthy, and believe they offer good service and value. They know that there are rewards for loyalty from retailers, while they feel that financial services companies exploit loyalty, rather than value it.
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