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Financial Services Marketing

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Financial Services Marketing

FT Prentice Hall,

15 min read
10 take-aways
Audio & text

What's inside?

To become a better marketer of financial services, learn the theory behind professional practices in the field.

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Editorial Rating

5

Qualities

  • Overview
  • Background
  • For Beginners

Recommendation

Social science research methods and techniques are a valuable marketing tool for large financial institutions whose marketers want to understand their customers better. Author Tina Harrison presents solid ways to apply marketing principles to the financial services industry. However, her textbook has a couple of practical limitations. First, it focuses entirely on the U.K., which limits its broader applicability, although it thoroughly covers British regulations and competition. It also lacks timeliness. Some of the research the author cites goes back more than a decade, although it does show how sociological and psychological information can be used to help promote financial services. Despite these deficiencies, the book provides some good basic information for financial services marketers, such as clear chapters on strategy, including the theory of new product introductions. Given the rapid proliferation of new products and the changes in Internet delivery, discount brokerages and regulations since the book’s publication, getAbstract.com finds that it is useful primarily as background reading - but, in that context, it still offers financial service marketers food for thought.

Summary

More People, More Money

The financial services sector in the United Kingdom has gone through unprecedented recent changes, which financial services marketing must take into account. These shifts are due to socio-economic, regulatory and technological changes. These influences have broken the distinct barriers that traditionally separated different kinds of financial service providers. These changes also have allowed nonfinancial institutions to enter the financial services industry. Market conditions that have helped create a new demand for financial services include an increase in disposable income and personal wealth, a decrease in income tax rates, fresh investment products and expanded forms of credit.

For a powerful example of this growing financial expansion, examine the statistics about how many people in Great Britain own houses. Home ownership in the U.K. has increased steadily since 1961. An increase in the types of mortgages available has accompanied this expansion. The most popular mortgages in Great Britain from 1980 to 1987 were interest-only - or "endowment" - mortgages, under which homeowners paid the capital balance at the end of the loan period, ...

About the Author

Tina Harrison, Ph.D., teaches marketing at the University of Edinburgh Management School. She is a former researcher at the Financial Services Centre at UMIST, Manchester, England. She has published widely on financial services marketing and has conducted research for several financial institutions.

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