The impact of new regulations and weak wholesale markets will cause banks to retreat to their core business of collecting deposits. Personal savings will become a key battleground as banks compete to attract deposits as a means of funding their lending operations. In a tough savings environment it is crucial for banks to understanding consumer savings behavior.
Features and benefits
- Understand the developments shaping the UK retail savings market.
- Test internal assumptions driving forecasts through independent third party analysis.
- Understand how market forces will influence the demand for different savings products.
- Understand the motivations of the next generation of savers
Consumers will be caught between forces that lower their ability to save and factors that encourage them to save more. The savings market will be boosted as consumers make building up their savings a top priority, the savings ratio is expected to stay high, and falling inflation will eventually allow real incomes to turn positive.
Affordability will remain a major obstacle to saving as the economic recovery will be gradual and dependent on a resolution of the eurozone crisis, inflation will fall slowly meaning real wages are not expected to turn positive until 2013, and unemployment will likely remain stubbornly high.
Banks need to help consumers make the process of saving as easy as possible. Consumers who save regularly each month but do not have a regular savings account offer an opportunity. The popularity of regular savings accounts will increase as consumers try to make saving a regular habit and look to maximize their returns in a tough rate climate.
Your key questions answered
- What were the main developments in the savings market in 2011?
- What are the factors that will affect the savings market in the 2012 and beyond?
- How will consumer desires to increase their savings interact with a challenging economic climate?
- How will the latest consumer behavioral trends affect the products demanded in the retail savings market?
- What are the savings goals of the next generation?