United Kingdom Savings Market Review, Forecasts, and Future Opportunities 2019: Brexit has Led to a Flight to Safety from Stocks and Shares ISAs into Cash ISAs

DUBLIN, Dec. 2, 2019 /PRNewswire/ -- The "UK Savings 2019: Review, Forecasts, and Future Opportunities" report has been added to ResearchAndMarkets.com's offering.

This report provides information and insights on the UK savings market, including details of the recent savings macro market, the competitive environment among incumbent and challenger players, customer behavior and sentiment, an analysis of recent regulatory changes and proposals and a look at the most innovative new players in the savings industry.

The UK savings market has been characterized by a mixture of factors during 2019. Lower GDP and higher real wage growth have created a willingness and ability to save. Similarly, uncertainty over Brexit has led to a flight to safety from stocks and shares ISAs into cash ISAs.

In terms of Net Promoter Score (NPS), First Direct leads the way, Nationwide has steadily fallen since 2017, and TSB collapsed in 2019. Meanwhile, new entrant Marcus by Goldman Sachs (Marcus) plans to introduce a budgeting and money management app for 2020 for upper emerging and mass affluent consumers. Its well-known brand and market-beating rates will put pressure on smaller banks in the short term and larger incumbents in the long term.

Scope

• Total deposit growth is forecast to be half of the preceding five years amid falling APRs.
• Cash ISA growth rates are set to outperform non-cash ISAs for the forecast period (2019-23).
• Sustained growth in average real weekly wages of 2.4% - combined with low growth and a fall in consumer spending - has meant an increased appetite for saving.
• The main savings providers have lost approximately 8% market share to newer rivals since 2012. Their total market share now stands at 67.5% and continues to fall.

Reasons to buy

• Gain insight at both the micro and macro level of the UK savings market.
• Learn about threats to savings providers, as well as potential opportunities such as new products.
• Assess the latest trends and innovations in UK savings.
• Compare the performance and strategic direction of your firm against competitors.

Key Topics Covered:

1. EXECUTIVE SUMMARY
1.1. Market summary
1.2. Key findings
1.3. Critical success factors

2. MARKET ENVIRONMENT
2.1. Economic conditions have led consumers to save more in spite of falling APRs
2.2. Total deposit growth over the forecast period will be half that of the preceding five years
2.3. Increased uncertainty has led to a small renaissance for cash ISAs
2.4. The cash ISA market is forecast to outperform non-cash ISAs
2.5. The outcome of Brexit will heavily influence interest rate policy
2.6. The mortgage price war has also led to falling APRs for depositors
2.7. Real wage growth has generated higher levels of saving
2.8. UK consumers are actively trying to save
2.9. Stringent rules and complexity have led banks to avoid lifetime ISAs
2.9.1. LISAs will need to change for incumbent banks to take up the product
2.10. Innovative finance ISAs face a similar fate to LISAs as P2P lenders experience a difficult year
2.10.1. Caution around P2P lending has led to low take-up of innovative finance ISAs
2.11. Pension freedom withdrawals remain popular
2.11.1. A cocktail of factors has caused the decline of annuities
2.11.2. Customers prefer the freedom and liquidity of cash savings over a pension
2.11.3. The FCA believes older consumers are being too cautious with their pension savings
2.11.4. Banks should explore a gap in the pension savings market

3. COMPETITIVE ENVIRONMENT
3.1. The market share of the main providers continues to fall
3.2. Challenger brands are competing aggressively for new business
3.2.1. OakNorth Bank
3.2.2. Atom Bank
3.2.3. Charter Savings Bank
3.2.4. Shawbrook Bank
3.2.5. Al Rayan Bank
3.2.6. PCF Bank
3.2.7. Marcus

4. CONSUMER BEHAVIOR
4.1. Incumbent banks have closed a third of UK branches in five years
4.1.1. Older consumers are least likely to change provider or behavior when affected by closures
4.2. First Direct leads customer sentiment while TSB flounders
4.2.1. Nationwide is first among the incumbent providers but its NPS has fallen 17 points in two years
4.2.2. Support for TSB has collapsed in 2019
4.2.3. Low channel satisfaction drags down Santander and Halifax
4.3. Assisted saving tools lack support from even keen savers
4.4. There are early signs that mobile and IM saving are set to grow

5. REGULATORY ENVIRONMENT
5.1. The FCA believes savers are being penalized for loyalty
5.1.1. A basic savings rate is likely to be detrimental to the savings market
5.1.2. Savers and banks could both benefit from a savings account switching service

6. INNOVATION
6.1. Budgeting and auto-saving features can help consumers save without conscious effort
6.1.1. Innovators are using a simple combination of open banking, customer transaction data, and contemporary banking infrastructure
6.1.2. Selling financial and other products to customers is innovators' main revenue source
6.2. Cleo has grown the fastest of the innovators
6.2.1. As well as its level of insight, Cleo's big advantage is its social media savvy
6.3. Plum has positioned itself for users who want to save without economizing
6.3.1. Plum Plus is mandatory for the investment features
6.4. Chip customers can earn up to 5% interest
6.5. Oval Money offers behavioral budgeting and saving
6.5.1. Oval Money's rules are unlikely to help customers accumulate large, regular savings
6.6. Squirrel caters for a niche market
6.7. Tally Money threatens banks' easy access deposits with older, affluent consumers
6.7.1. A decade of low interest rates has spawned inflation-protection products
6.8. Raisin is expanding across multiple physical and online markets
6.9. Incumbent providers have already begun to copy the innovators
6.9.1. Santander Wallet
6.9.2. Lloyds Banking Group's Save The Change
6.9.3. NatWest's Mimo
6.10. Other innovative news
6.10.1. Nationwide PayDay SaveDay
6.10.2. Monzo offers salary sorter and budgeting tools

7. APPENDIX
7.1. Abbreviations and acronyms
7.2. Methodology
7.2.1. 2019 Banking and Payments Survey

Companies Mentioned

• Marcus by Goldman Sachs
• NS&I
• Lloyds Banking Group
• HSBC
• Skipton Building Society
• Hargreaves Lansdown
• Nutmeg
• AJ Bell
• Moneybox
• Zopa
• RateSetter
• Quackle
• Encash
• GraduRates
• First Great National
• Fruitful
• FundingSecure
• Santander
• Nationwide
• Barclays
• RBS Group
• OakNorth
• Monzo
• Atom Bank
• Charter Savings Bank
• One Savings Bank
• Shawbrook Bank
• Al Rayan Bank
• PCF Bank
• Bank of London and Middle East
• Gatehouse Bank
• Ikano Bank
• ICICI UK
• State Bank of India
• Axis Bank
• Zenith Bank
• QIB UK
• Masthaven Bank
• Union Bank of India
• Nottingham Building Society
• Swansea Building Society
• Coventry Building Society
• Bank of Scotland
• Yorkshire Building Society
• Halifax
• Clydesdale
• Ulster Bank
• First Trust
• Bank of Ireland
• Dankse Bank
• Virgin Money
• Cleo
• Plum
• Amazon
• Facebook
• Google
• Chip
• Oval Money
• Squirrel
• Tally Money
• Raisin
• ING
• Yolt

For more information about this report visit https://www.researchandmarkets.com/r/xskqdi

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