Online product innovation that benefits the consumer is welcomed by personal finance journalists

Amid much rhetoric about financial services becoming more customer-centric, more than a half of personal finance journalists (PFJs) interviewed by Ipsos agreed (51%) that financial services companies were creating more innovative products for retail customers than they were five years ago (pre-crisis 2007).

Not all product innovation is received positively, however. When it was put to them, 81% of PFJs believed it was better to be fair than to be innovative. For PFJs, the two most important criteria on which they judge providers are their customer service and their customer focus. This is consistently the case, whether the journalist in question writes as a consumer finance agony aunt or for a top trade publication. Financial companies must therefore show journalists that they are trying to provide top-tier service to their customers - otherwise many of their new innovations will not make the impact they would like them to. The many scandals in the retail banking sector, including the high-profile banking system failure, PPI mis-selling claims, and more recently LIBOR manipulation, have contributed to the widespread view amongst journalists financial providers are still not acting in the best interests of their customers. If customers do not feel that their business is valued, they will take it elsewhere – and with new rules being introduced in September 2013 that decrease the customer effort associated with switching current accounts – banks, in particular, should not be feeling complacent.

Providers need to go back to basics and rebuild trust through acting in a fair manner, although it is clear that PFJs react well to innovations that benefit the customer. Many new innovations (such as RBS/ NatWest’s ‘Your Savings Goal’ or Lloyds TSB’s ‘Money Manager’) offer ways to help consumers take control of their finances and thereby improve financial wellbeing. Reflecting the warmth towards this type of innovation, 84% of PFJs agreed that online finance management tools provide a clear benefit to the customer.

By providing financial products which incentivise positive financial behaviour, and clearly communicating the benefit of these products to both consumers and journalists, brands can create positive differentiation in the marketplace, and thereby start to improve their image.

For further insights into the opinions of the UK’s personal finance journalists, please contact Ipsos’s financial services team on 020 7347 3000, or speak directly to the study manager, Chris O'Brien. Further information on our regular personal finance journalists survey is on our web site.