Series prospectus affinity_partnership_marketing_uk_financial_services

Affinity and Partnership Marketing in UK Financial Services

Affinity and Partnership Marketing
in UK Financial Services

Series Prospectus

January 2013

Expertise in financial services
© Finaccord Ltd., 2013 Web: www.finaccord.com. E-mail: info@finaccord.com 1


Prospectus contents

Page

Which titles have been published? 3
What is the research? 4
What methodology has been used? 5
How does the sample break down? 6
What is the difference between the unweighted and weighted analyses of partnerships? 7-8
What is the structure of the reports? 9
What are the key features of the research? 10
How can the research be used? 11
How can the PartnerBASE™ be used? 12
Who can use the research? 13
What are some of the key findings? 14-16
What is the cost and format? 17
How can the research be purchased? 18



Which titles have been published?
Finaccord’s Affinity and Partnership Marketing in UK Financial Services series extends to the
following titles:

• Affinity and Partnership Marketing in UK Accident and Health Insurance
• Affinity and Partnership Marketing in UK Household and Home Emergency Insurance
• Affinity and Partnership Marketing in UK Life Insurance, Retirement Products and Financial Advice
• Affinity and Partnership Marketing in UK Motor and Breakdown Recovery Insurance
• Affinity and Partnership Marketing in UK Payment Cards and Consumer Finance
• Affinity and Partnership Marketing in UK Pet Insurance
• Affinity and Partnership Marketing in UK Travel Insurance

Separate tables of contents are available for each of these studies on the relevant pages of the
Finaccord website with this single marketing prospectus covering the entire series.

In addition, a further report titled Affinity and Partnership Marketing in UK Commercial Non-Life
Insurance is also available for which a separate report prospectus and table of contents can be
obtained.



What is the research?
The Affinity and Partnership Marketing in UK Financial Services series provides unique insights and
detailed intelligence into developments and opportunities in affinity and partnership marketing in
financial services in the following broad and specific partner categories:

• not-for-profit affinity partners - charities; lifestyle organisations; professional associations; sports
organisations; trade associations; trade unions; and universities;

• financial institutions - banks; building societies; credit and charge cards; credit unions; friendly
societies; insurers; online aggregators and brokers; packaged accounts; and specialised lenders;

• commercial partners - airlines; automotive associations; automotive manufacturers; coalition
loyalty schemes and frequent flyer programs; consumer product manufacturers; estate agency and
property service firms; football and rugby clubs; internet, media and telecoms entities; online price
comparison providers; retailers; travel companies; utilities; and the Post Office and other major
brands (e.g. Saga, The Co-operative).



What methodology has been used?
The survey of 2,650 actual and potential affinity partners was carried out during the final quarter of
2012 and covers the vast majority of viable affinity distributors in the UK consumer financial services
market. The research embraces the following information:

• for each affinity group or partner considered, whether it offers the financial product or service in
question;

• if provided, whether the product or service is offered through one or more partnerships with external
companies or in-house (including by means of a sister or subsidiary company);

• if provided through one or more partnerships with external companies, the identity of the partner(s)
and the nature of the partnership(s).



How does the sample break down?
Commercial partners, 944 - of which Not-for-profit affinity partners,
309 retailers, 243 travel companies, 80 1,156 - of which 700 trade
internet, media and telecoms entities, associations, 139 professional
76 football and rugby clubs, 55 associations, 95 trade unions,
automotive manufacturers, 55 estate 89 charities, 57 sports
agency and property services firms, 43 organisations, 45 universities
utilities firms, 20 consumer product and 31 lifestyle organisations.
manufacturers, 20 online price
comparison providers, 18 airlines, 12
coalition loyalty schemes and frequent
flyer programs, eight automotive
associations, four other major brands
and the Post Office.
.

550 financial partners of which 193 individual credit and charge cards,
70 insurers, 54 building societies, 54 specialised lenders, 48 banks, 40
online aggregators and brokers, 36 packaged accounts, 30 credit unions
and 25 friendly societies.



What is the difference between the unweighted
and weighted analyses of partnerships?
Finaccord's new series of studies on this subject incorporates a new analysis whereby it identifies not
only the financial product providers with the most partnerships (overall, and within each category), but
also computes 'weighted provider shares of partnerships' in order to highlight the providers that are
likely to hold the most valuable relationships given the characteristics of their partners.

Within affinity and partner categories (e.g. for banks in isolation), it does this by weighting
partnerships in accordance with the UK traffic ranking for each organisation's website. Then, across
all distributor categories combined, it also takes into account the approximate distribution share of the
financial service in question of the category to which the organisations belong, as measured by
Finaccord's Channel Metrics consumer research, and additionally incorporates the number of
organisations in the category that offer the financial service in question so that the distribution share
is divided across the number of active organisations. (The precise formulae and workings used can
be obtained from Finaccord if needed.)

An example of the impact of this approach, illustrating the differences that can emerge between the
unweighted and weighted analyses of partnerships, is presented on the following slide.



What is the difference between the unweighted
and weighted analyses of partnerships? (cont.)
Building societies offering household insurance
Unweighted provider share of partnerships Weighted provider share of partnerships
Gallagher Heath, 2.8% other, 2.7%
other, 9.5%
RSA, 3.9%
Equity Direct
Broking, 4.8%

Legal & General,
7.1% RSA, 38.1%

Aviva, 7.1%

UK Insurance, UK Insurance dominates
9.5% the weighted analysis
because of its partnership
with the Nationwide (and
UK Insurance,
Gallagher Heath, its subsidiary brands), by
90.5%
23.8% far the largest building
Source: Finaccord PartnerBASE society group in the UK.



What is the structure of the reports?
0. Executive Summary: providing a concise evaluation of the principal findings of the report.

1. Introduction: offering rationale for the report, a detailed description of the methodology and associated definitions.

2. Market Overview: a ‘bird’s eye’ overview of the sector including provision rates by category of distributor for each
product or service in scope plus analyses of both the unweighted and weighted share of partnerships of providers
across all types of distributor combined.

3. Not-for-Profit Affinity Partners: a detailed investigation into the current status of partnerships for the product(s)
and service(s) in question analysed separately (where relevant) for each of: charities; lifestyle organisations;
professional associations; sports associations; trade associations; trade unions; and universities.

4. Financial Partners: as for chapter 3 but with separate analysis (where relevant) of: banks; building societies;
credit and charge cards; credit unions; friendly societies; insurers; online aggregators and brokers; packaged
accounts; and specialised lenders.

5. Commercial Partners: as for chapter 3 but with separate analysis (where relevant) of: airlines; automotive
associations; automotive manufacturers; coalition loyalty schemes and frequent flyer programs; consumer product
manufacturers; estate agency and property service firms; football and rugby clubs; internet, media and telecoms
entities; online price comparison providers; retailers; travel companies; utilities; and the Post Office and other major
brands (e.g. Saga, The Co-operative).



What are the key features of the series?
Key features of this series include:

• seven separate studies covering the following fields: accident and health insurance; household and
home emergency insurance; life insurance, retirement products and financial advice; motor and
breakdown recovery insurance; payment cards and consumer finance; pet insurance; and travel
insurance;

• results drawn from the largest ever survey of 2,650 affinity and partnership marketing distributors
for financial services in the UK;

• analyses of the share of partnerships of providers for each distributor category and across all
categories combined on both an unweighted and weighted basis;

• accompanying PartnerBASE™ database with each report, providing a complete listing of all affinity
and partnership marketing schemes in place, searchable by partner type, operating model and
product provider.



How can the research be used?
You may be able to use this series of reports and the PartnerBASE databases that accompany it in
one or more of the following ways:

• drill down into the detail lying behind affinity and partnership marketing schemes for the specific
insurance and banking products in which you are interested;

• gain access to research that chronicles the vast majority of affinity and partnership marketing
opportunities in UK financial services;

• understand not only which providers have secured the most partnerships but which are likely to
hold the most valuable deals for each product or service;

• benchmark the competitive position of your own organisation in affinity and partnership marketing
and spot opportunities for displacing rivals;

• plan your future affinity and partnership marketing strategy armed with the best market and
competitor intelligence available on this subject.



How can the PartnerBASE™ be used?
Filter by category Select operating model

Organisation Type Product / service Offered? Operating model Partner(s)

Magistrates’ Association Professional associations Life insurance Yes External IFA Parliament Hill / LifeSearch
Manchester Credit Union Credit unions Life insurance Yes External underwriter CUNA Mutual
Manning Stainton Estate agency and property Life insurance Yes External IFA Mortgage Advice Bureau
Mansfield B.S. Building societies Financial advice Yes External IFA R A Cowen & Partners
Market Harborough B.S. Building societies Financial advice Yes External IFA Skipton Financial Services

Look up specific Choose product / service Identify
affinity partners insurance
partners



Who can use the research?

1. Aggregators, brokers, IFAs and other intermediaries: affinity and partnership marketing
schemes represent a growth opportunity in many of the financial services sectors considered
as consumers migrate to alternative distribution interfaces and channels;

2. Banks and building societies: the report dealing with consumer finance and payment cards will
be directly relevant while those focused on insurance will provide insights into where banks
and building societies belong in the wider market for partnerships;

3. Insurance companies: understand the prospects for affinity and partnership marketing across
each of the main lines of personal insurance and the extent to which partner organisations are
opting increasingly for solutions based around intermediaries rather than the ultimate product
providers;

4. Management consultancies: are you helping an organisation in any of the preceding categories
with its distribution strategy? This research will help you to evaluate the options in affinity and
partnership marketing, saving time and effort on researching the subject yourself.



What are some of the key findings?
1) Across all 2,650 organisations researched, 342 (12.9%) were found
to offer consumer finance (or other non-mortgage loans), mostly in
conjunction with external finance providers or intermediaries

% of all organisations offering product, and operating models used
100%

Undisclosed
80%
Other

Internal finance provider
60%
Captive finance provider

Internal aggregator / broker
40%
External aggregator / broker

Multiple external finance providers
20%
External finance provider

0%
Product offered Operating model
(see legend)
Source: Finaccord PartnerBASE



What are some of the key findings? (cont.)
2) Among the 80 internet, media and telecoms entities surveyed,
initiatives are most in evidence for household and motor insurance
but not present for either accident or home emergency cover
Accident insurance 0.0%
At-retirement products 13.8%
Breakdown recovery insurance 10.0%
Consumer finance 20.0%
Credit cards 20.0%
Dental insurance 5.0%
Financial advice 3.8%
Health / hospital cash plans 3.8%
Home emergency insurance 0.0%
Household insurance 23.8%
Life insurance 20.0%
Motor insurance 23.8%
Personal / stakeholder pensions 6.3%
Pet insurance 10.0%
Prepaid cards 8.8%
Private medical insurance 13.8%
Travel insurance 22.5%

0% 5% 10% 15% 20% 25%
% of organisations offering product or service



What are some of the key findings? (cont.)
3) When measured on an unweighted basis, RAC and the AA are found to hold an almost equal
number of partnerships for breakdown recovery insurance across all distributor categories
although the weighted analysis suggests that those of RAC are with larger organisations

Unweighted provider share of partnerships Weighted provider share of partnerships

RAC, 17.6% other, 17.5%
other, 23.3% RAC, 22.8%

Call Assist, 3.4%
Parliament Hill /
AA, 16.8% First Call, 4.4%
Britannia
Rescue, 3.4%
Green Flag (UK Comparison Creator
Insurance), 4.2% (Auto Network UK), 6.7%
AA, 16.0%
Call Assist, 4.2%
AXA Assistance,
Mondial 6.7%
Assistance, 7.6%
Parliament Hill /
Mondial Green Flag (UK
HMCA / Autohome First Call, 12.6%
Assistance, Insurance), 11.4%
Assistance, 10.3% 11.0%




What is the cost and format?
Reports in the Affinity and Partnership Marketing in UK Financial Services series are available as
standard Adobe Acrobat PDF documents and / or hard copies. The PartnerBASE databases that
accompany them are in Microsoft Excel format. Costs for these studies are as follows:

REPORT COST *

Affinity and Partnership Marketing in UK Accident and Health Insurance £1,495
Affinity and Partnership Marketing in UK Household and Home Emergency Insurance £1,495
Affinity and Partnership Marketing in UK Life Insurance, Retirement Products and Financial Advice £1,495
Affinity and Partnership Marketing in UK Motor and Breakdown Recovery Insurance £1,495
Affinity and Partnership Marketing in UK Payment Cards and Consumer Finance £1,495
Affinity and Partnership Marketing in UK Pet Insurance £595
Affinity and Partnership Marketing in UK Travel Insurance £795

* For purchases of multiple reports in the UK Affinity and Partnership Marketing in UK Financial
Services series, a discount scale is available: please contact Finaccord for further details.
# VAT at the prevailing rate will be added to the basic price for UK-based buyers except for where the request is for
hard copy only. Costs quoted are for a single office, single country licence only. For corporate user licence options,
please see the next slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate, if
preferred.


How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord website available at
http://www.finaccord.com/order_uk_apmr.htm and fill in the online order form, clearly indicating:
• report required
• type of corporate user licence, if required *
• billing name
• address and e-mail address
• purchase order number, if applicable

Please allow up to one working day for the delivery of electronic copy by e-mail.

* For the corporate user licence please choose one of the following options:
1. One office, one country: no supplement over and above basic cost of reports ordered
2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered
3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered
4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered

VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.


Series prospectus affinity_partnership_marketing_uk_financial_services

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Series prospectus affinity_partnership_marketing_uk_financial_services