Market inclusiveness.

more safety nets

We have grown the number of people in the UK we help with their financial security in 2012 by 5%. But we know that the recession and its effects have made it more difficult for people to access the financial services that they need.

We particularly worry about three social groups in our marketplace

  • Green shoots’ – who are young students/first jobs and newcomers to financial services. We know that the pressures of finding jobs and getting a secure roof over their heads is getting more difficult
  • Grey days’ – who are low earners and only likely to use very basic banking and insurance services. Our work with Credit unions is showing that there has been a significant increase of people in this area
  • Pink fizz – who are mainly young singles with busy lives, private renting or mortgaged and credit users. We know getting that first step on the housing ladder is almost impossible now.

SO how well are we serving these groups?

(Download XLS:) Download Excel


Percentage of UK population

Percentage of our UK business

Green shoots: young, students/first jobs and newcomers to financial services
(Average savings and investments of £4,000)

25% (2010)
24.9% (2011)
26.9% (2012)

14% (2010)
15.9% (2011)
14.2% (2012)

Grey days: low earners and only likely to use very basic banking and insurance services
(Average savings and investments = £7,300)

Pink fizz: mainly young singles, busy lives, private renting or mortgaged and credit users
(Average savings and investments = £9,300)

These three segments account for 26.9% of the UK population in 2012, which is up from 24.9% in 2011 (a 2% increase).

Our business had 15.9% of its customers in these groups in 2011, which dropped to 14.2% in 2012.

However, what this means is that, despite the population of these harder to reach groups going up by 2%, our products have grown in inclusivity by 0.3% in 2012.

understanding these groups

A number of initiatives have helped us to do this. In 2012 we set a public target as part of our UK growth strategy to support our six Groupwide campaigns and turn at least five innovative partnerships with Third sector organisations into more socially inclusive products and / or adjustments to service our customers by the end of 2013.

Some of the examples of where we have done this to improve our understanding of every day matters facing our customers are shown below:

  • AGE UK has taught 170 employees about living on £70 per week to help us get 'Generation Y' involved with auto enrolment
  • British Heart Foundation has challenged us on Heart attack definitions and help us to change our life insurance product cover
  • Money Money Money has taught is about young consumer attitudes to money and the need of the workforce in the future
  • Elderly Accomodation Counsel (EAC) has helped our employees looking to after their parents in later life and help us design products for those people in better ways
  • Shelter's knowledge has led us to provide capital loans and insure social housing providers
  • The RNLI has taught us about the real impact of flooding upon our home insurance customers
  • Rethink is improving our understanding and knowledge around the important role of dealing better with mental health in the workplace
  • CAF Bank and NESTA has helped us to bring in social enterprises from our local communities and increased our knowledge of UK Micro finance models
  • Credit unions have taught us how to market to savers better and help our Savings business to understand where customers are increasingly feeling pressure
  • The Samaritans have helped us to deal better with bereaved families over the phone for when clients are distressed and dealing with difficult issues
  • Macmillan has taught us how to deliver service better to cancer patients at claims stage
  • Tax volunteers has helped us to deliver better annuities services to our customers and critique our product literature on taxation
  • Step up for Success with 60 ‘Young consultants’ has taught us how to deal with social media and get a qualification along the way and develop our employees.

To read more about these important pieces of insight please read our campaigns section.


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