Few brands attract as much criticism as those in the financial services industry. According to Mintel’s research, financial services brands are the most likely to be seen as ‘only caring about profits’ – one of the few areas in which they dominate all brand rankings. There is a perception that they care more about their shareholders than they do about their customers – something that may be true for all companies, but which some are better at hiding than others.

Few brands attract as much criticism as those in the financial services industry. According to Mintel’s research, financial services brands are the most likely to be seen as ‘only caring about profits’ – one of the few areas in which they dominate all brand rankings. There is a perception that they care more about their shareholders than they do about their customers – something that may be true for all companies, but which some are better at hiding than others.

Branding is rapidly moving up the agenda in the financial services industry, though. Shareholders are increasingly aware of the value of intangible assets – and a strong brand can be a huge asset to a company. In the financial services world, where markets such as credit cards and motor insurance struggle to minimise the impact of price-driven switchers, branding can make the difference between a loyal customer and a lost customer. In essence, strong branding gives a sustainable competitive advantage, allowing firms to sidestep the price-driven skirmishes that do so much to drive down margins.

This report draws on the extensive brand database built up by Mintel over the course of 2007, highlighting those brands that have performed particularly well, and those which are in real danger of alienating their customers. It also looks at the industry on a sector, rather than brand basis – are there markets in which customers feel more affection for their financial services provider, or are they all tainted by the same profit-driven image?

Brand Elements methodology:

Mintel’s Brand Elements research provides an insightful and competitive look at brand dynamics in the financial services marketplace. Mintel assesses both rational and emotional characteristics of brand performance and consumer impact. It also comments on selected brands that best illustrate the scope of the market.

Mintel has drawn insight from January-December 2007 over 90 categories, of which 15 were financial, and collected data on 900 brand aspects, of which about 230 were financial.

The independent survey is run monthly by category in surveys of 2,000 adults aged 16+, conducted on Mintel’s behalf by Ciao online, during 2007. Mintel ran a GB Internet representative sample, cumulatively totalling 80,000 respondents in 90 categories, of which 30,000 respondents related to financial services, collected in 15 categories.

In 2007, all categories comprised of ten brands each (sample of 2,000 adults aged 16+ per survey).

As a result, Mintel collected brand performance data for around 71 financial services brands, in multiple categories, such as Halifax ubiquitously in nine.

The survey examined seven main elements of brand evaluation (usage, consideration, satisfaction, commitment, loyalty, engagement and image), and Mintel analyses brands in the context of their own market, in category, which is where consumers engage with them. (In 2008, Mintel has added momentum, a quality index and brand engagement, as well as motivation in some categories).

Following an overview of adspend in 2007, this report re-examines the Brand Elements data gathered throughout the course of the year, placing it in the context of the industries covered by Mintel (FMCG and retail, for example). Breaking it down further, the headline data from some of the key financial services segments are compared, giving a top-level indication of how consumers view brands across a number of different categories.

Inevitably, given the concentrated nature of many of the financial services sectors, a number of brands have featured in a wide variety of Brand Elements studies. In this report, Mintel examines some of the key metrics for the most-frequently covered brands, highlighting markets in which they are strong, and those in which they need to improve their ratings.

Finally, the report highlights the key findings and recommendations of a selection of the main Brand Elements studies, providing an overview of the research to date.