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Sector Analysis
P2P Lending: Responding to Disruption
P2P lending platforms have a 400–425 basis point advantage over traditional banks in loan origination. Retention of customers who have used a P2P platform before is high, with 75% saying they would approach one again when seeking a loan. Fractional lending and alternative credit risk assessments allow platforms to reduce exposure to default and asses risk more accurately than banks. The domination of institutional investors does pose a risk to the sustainability of some P2P platforms.
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Sector Analysis
Retail Banking Country Snapshot: Singapore
Singapore has an advanced financial services market. Consumers are generally conservative in choosing a provider, with a bias towards those they perceive to offer financial stability and a longstanding reputation. Singaporean consumers prefer the branch for nearly all of their banking requirements. NPS scores are low across all four products compared with other markets in the region. Channel usage patterns indicate that Singaporean consumers are less engaged with their banks than consumers in other regional markets.
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Sector Analysis
Retail Banking Country Snapshot: UAE
UAE has a well-diversified and sound financial system that plays an important role in the economy. The retail banking sector is rapidly growing due in part to the country’s increasing expatriate population. Product ownership rates are high, particularly for current and savings accounts. Emirati consumers retain a traditional attitude towards provider choice, favoring banks with which they have a prior relationship. Product application is still largely conducted via branches, meaning there is considerable scope for providers to encourage greater use of digital...
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Sector Analysis
Retail Banking Market Insights: Norway
The banking sector in Norway is concentrated, with the top three providers accounting for 59% of main current accounts. Norwegian consumers tend to choose providers on the basis of reputational factors and an existing relationship. 11% consumers in Norway have switched their accounts in the last 12 months, which is the highest in the region. However, it is still below the global average. Norwegian savers are cautious, with around two-thirds saving to protect themselves against unforeseen events and over a...
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Analyst Opinions
UK IFAs, Investment Managers, & Platforms
The attractiveness of platforms is first and foremost driven by the investment fund range they offer. Another key consideration is investment fund returns. Beyond products and performance, low costs are important to advisors. Investment product providers are regularly reviewed by IFAs. 30% review their investment product providers quarterly and 45% do so annually. Platform sales account for a growing percentage of gross retail fund sales. 94% of advisors use platforms, with the majority relying on more than one. The three...
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Sector Analysis
Retail Banking Country Snapshot: Spain
The banking sector in Spain is concentrated, with the top three providers accounting for 51% of main current accounts. Spanish consumers tend to choose providers on the basis of branch location and reputational factors. Switching rates are low in Spain compared to the global average of 17%. Pull factors prompt consumers to switch providers. Spanish savers are cautious, with around two thirds saving to protect themselves against unforeseen events and one third saving for retirement. A desire for value for...
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Sector Analysis
Wealth in Singapore: Sizing the Market Opportunity
Singapore is one of the world’s pre-eminent offshore investment centers, with 81% of the wealth invested in funds sourced from non-residents. However, the onshore market is a major source of assets under management (AUM) in its own right, with 1.0 million affluent individuals despite the city state’s small population. As a regional trading hub Singapore’s growth rates are closely tied to the health of regional powerhouses such as China, India, and Indonesia; however, even with growth slowing in some of...
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Sector Analysis
Wealth in Turkey: Sizing the Market Opportunity; Sizing the wealth market in Turkey and its growth potential.
While growth in Turkey’s economy has slowed thanks to a number of economic and geopolitical challenges, the country’s small affluent population will continue to increase at a healthy rate. The retail savings and investments market is dominated by deposits, though stronger growth is predicted for the smaller asset classes such as equities and mutual funds. The offshore market remains important, accounting for around 25% of HNW portfolios, with tax efficiency and client anonymity the primary drivers for holding assets overseas.
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Analyst Opinions
Mass Affluents: Product Holding and Preferences in Hong Kong
Mass affluent populations around the world are growing in size, making them an increasingly important segment for financial providers. These consumers possess more financial products than average, maintain higher levels of savings and investments, and are more likely to use added-value services. This makes them an attractive and profitable segment to target.
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Analyst Opinions
Wealth in Australia: HNW Investors
Australia is known for its multicultural landscape, which is also reflected in the country’s HNW market. HNW investors in Australia stem from a range of different backgrounds and portray distinctive demand patterns. However, a strong affinity for equity investments and high expectations when it comes to financial advice and other support services (such as pension and tax advice) are common characteristics.
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