18 Jul 2001: A survey of 2,500 consumers actively engaged in financial decision-making has found that some 61% are comfortable with researching and buying financial products online without advice or help from professional third parties.

The study was carried out by independent financial research company Defaqto. Seemingly illustrating that UK consumers are becoming increasingly confident when it comes to navigating theri own way around financial products once perceived as too complex to be dealt with without the help of a professional intermediary.

At the same time, Defaqto research has found that the number of products available to consumers has grown significantly over the last few years and that financial product markets are subject to rapid change.

Example cited include:

• the number of standard home insurance contents policies on the market has grown by 15% since 2008, and buildings policies by 19% over the same period
• since 2009, the number of short term income protection products on the market has almost doubled, from 20 to 38 currently
• 8,968 mortgages were either brought to market or updated by providers between 1st April and the end of June this year alone

Defaqto believes that the findings, coupled with this rapidly increasing product choice for consumers, has created a significant challenge for direct and database marketers: how do they cut through the noise and appeal to a savvier consumer audience when they have less opportunity to interact with customers directly?

In response, Defaqto has launched a new web-based product research application – Defaqto Matrix – that provides financial marketers with independent, whole of market competitor intelligence to help them understand where their products sit in relation to competitors’, what features their products need to have in order to stand out; and how to position them for maximum impact. 

The application provides access to market data across the banking, general insurance, wealth management and protection sectors.  Its key features include:

• Reports on product changes – enabling marketers to see at a glance what new products have been launched or whether any features have changed in competitors’ products
• Access to historical product data – allowing marketing professionals to assess how a particular sector or product type has changed over time
• The ability to compare the features of one product against another – facilitating analysis of a product’s key strengths or weaknesses in relation to a competitor’s

Urvashi Roe, Defaqto’s Head of Marketing, said: “Marketing professionals in the financial services sector are facing a number of significant challenges, including rapidly changing and crowded product markets and consumers with increasingly complex and individualised needs.  These challenges are exacerbated by consumers’ increasing comfort with buying online, meaning that there are fewer opportunities for firms to have direct contact with their target market. This presents a significant issue for marketers, who need to work that much harder to ensure their products stand out from the competition.

“Competitor intelligence is central to successful marketing – knowing where your product sits in relation to the market and, more importantly, what its USP is or should be and how to communicate this to really hit home with target consumers.  Technology as an enabler to this process is becoming increasing critical.  Defaqto Matrix provides access to independent, accurate and comprehensive financial product data.  It is a key enabler to help firms stand out from their competitors and grasp opportunities head on.”