英国的直接银行：2007年

Abstract

Overview

Introduction

Higher interbank money market rates, which have resulted from the credit squeeze, are putting significant pressure on lenders to source funds. Unlike some traditional banks, direct banks may more insulated because they have large, fast growing deposit bases upon which to draw. This report explores their offerings.

Scope

• Presents a comparative analysis of variable deposit rates of direct banks, high street banks and building societies;
• Presents a comparative analysis of fixed deposit rates of direct banks, high street banks and building societies;
• Compares the features of variable and fixed rate savings products offered by UK-based direct banks.

Report Highlights

Between June and December 2007, Smile has consistently offered lower rates than its competitors, while Sainsbury' s Bank has been the most consistent market leader by rate, with the exception of the months of July and August when Tesco offered the best rate, and November and December when the AA took the lead.

A comparison between rates of high street banks and the accounts of direct banks suggests that, among traditional banks, only Abbey and, to a lesser extent, Lloyds TSB, are holding their own against their newer rivals.

A comparison of average rates across the three categories of providers reveals that high street banks have consistently offered the highest average fixed rates, although since November, the gap between their average and that of rival direct banks and building societies has been narrowed.

Reasons to Purchase

• Assess the competitive threat posed by direct/online savings banks;
• Benchmark your pricing and product propositions;
• Use our insights to plan your strategies for targeting deposit customers.

Table of Contents

• OVERVIEW
  • Catalyst
  • Summary
  • Methodology
• EXECUTIVE SUMMARY
  • Direct banks present strong rate-based competition, particularly in the variable rate savings market
    • Since August, deposit rates have stagnated
    • Online banks offer similar product features
• Table of Contents
• Table of figures
• Table of tables
• VARIABLE & FIXED DEPOSIT RATE TRENDS - DIRECT BANKS, HIGH STREET BANKS AND BUILDING SOCIETIES
  • Since August, deposit rates have stagnated
    • Among direct banks, Sainsbury' s Bank has offered the most competitive variable rates
    • High street banks' variable deposit rates lag behind those of their online competitors
    • Building societies offer strong competition in the market for online deposits
    • Building societies are prepared to market aggressively on rate
  • The market for fixed deposits sees increasing competition
    • A limited but growing number of online banks offers fixed rate investments
    • Online offers on fixed rate investments face strong competition from bricks-and-mortar banks
    • Building societies are also holding their own in the fixed investments market
    • Gradual rate increases from online banks have allowed them to compete against banks and building societies
• VARIABLE AND FIXED RATE PRODUCT FEATURES - DIRECT BANKS
  • Online banks offer similar product features
    • Interest rate guarantees and flexible payment options are common on variable rate accounts
    • Low deposit requirements and easy access features are designed to attract the average investor
  • Direct banks are developing their fixed investment ranges
    • Current providers offer a mix of terms and flexible interest payment options
    • Most fixed investments from direct banks are available from £1,000
• APPENDIX
  • Definitions
    • Annual Effective Rate (AER)
    • Direct banks
    • Fixed investment / Fixed rate savings account
    • Gross interest
    • Variable rate savings account
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Highest deposit rates offered by direct banks, gross % p.a., monthly interest, Jun-Dec 2007
    • Table 2: Highest internet savings deposit rates offered by high street banks compared to the top three direct banks, gross % p.a., yearly interest, Jun-Dec 2007
    • Table 3: Highest internet savings deposit rates offered by building societies compared to the top three direct banks, gross %, p.a., yearly interest, Jun-Dec 2007
    • Table 4: Average variable deposit rates offered by direct banks, high street banks and building societies, gross % p.a., yearly interest, Jun-Dec 2007
    • Table 5: Highest fixed deposit rates offered by direct banks, gross % p.a., Jun-Dec 2007
    • Table 6: Direct banks' variable rate savings account features - interest terms
    • Table 7: Direct banks' variable rate savings account features - eligibility and access terms
    • Table 8: Direct banks' fixed investment account features - interest and terms
    • Table 9: Direct banks' fixed investment account features - eligibility and access terms
  • List of Figures
    • Figure 1: Since August 2007, most direct banks have held their savings rates constant
    • Figure 2: Abbey' s internet savings account offered the highest rate among high street banks
    • Figure 3: Only Abbey compares favorably to the top three direct banks by rate
    • Figure 4: Bradford & Bingley' s e-savings account holds its own against direct banks
    • Figure 5: Building societies offer strong rate-based competition in direct banking
    • Figure 6: Two direct banks have introduced new fixed rate deposits since June
    • Figure 7: High street banks offer comparable rates on fixed investments
    • Figure 8: Nationwide and Bradford & Bingley offer rates in excess of the average of direct banks' rates
    • Figure 9: High street banks offer strong rate-based competition on fixed investments