March 10, 2008 16:06 ET

Examine Selling Financial Services to the Under 35s

LONDON, UNITED KINGDOM--(Marketwire - March 10, 2008) - announces that a new market research report related to the Financial services industry is available in its catalogue.

Selling financial services to under 35s

Selling Financial Services to the Under 35s in the UK uses information from Datamonitor's quarterly survey of financial advisors to assess their views on the under 35s market. It examines how these clients are targeted and which products they typically purchase.

This report gauges financial advisor opinion toward a selection of life and mutual fund providers The report examines the opinions of financial advisors in relation to a potential recession during 2008 This report analyses the efforts of financial advisors in selling financial services to the Under 35 age group.

Advisors expect clients to save more money in a recession while their long term personal finances are likely to be unaffected Financial obligations and immediate spending are limiting the savings of young clients. Most advisors have no interest in targeting young clients.

Gain insights from financial advisors on what would be considered important qualities of provider if a market downturn were to occur Discover which targeting strategies are believed to be the best methods for attracting young clients, according to financial advisors' opinion.

Overview 1

Catalyst 1

Summary 1

Executive Summary 2

Market context 2

Competitor and product overview 2

Forecasting the payment card market in Germany 2

Table of Contents 4

Table of figures 5

Table of tables 6

Market Context 7

Market overview 7

Demographics 7

Economy 9

GDP 10

GDP per capita 11

Sectoral composition of the economy 12

Inflation 13

Distribution of income (GINI Coefficient) 14

Segmentation of liquid assets 15

Unemployment 16

Market size 16

Payment cards in the context of consumer payments 16

Payment card statistics 17

Cards in issue 17

Number of transactions 19

Value of transactions 21

Card acceptance 23

POS statistics 23

ATM statistics 24

Market structure 25

Private commercial banks 27

Private commercial banks mainly concentrate on corporate banking rather than retail banking 27

Sparkassen Group (savings banks) 27

Volks- und Raiffeisenbanken (co-operative banks) 27

Regulatory environment 28

Industry regulators 28

Bundesbank 28

BaFin 29

Industry associations 29

Zentraler Kreditausschuss - ZKA 29

Deutsche Sparkassen- und Giroverband - DSGV (German savings banks association) 29

Bundesverband deutscher Banken - German Bankers Association 29

Bundesverband der Deutschen Volksbanken und Raiffeisenbanken - BVR 29

Bundesverband Offentlicher Banken Deutschlands - VOB 30

Bankenfachverband 30

Credit bureaus 30

Schufa 30

Infoscore 30

Regulatory issues in the market 30

European Consumer Credit Directive (CCD) 30

Private commercial banks are not allowed to acquire Sparkassen under current legislation 31

Landesbanken lose state guarantees 32

A change to the way the maximum interest rate is calculated has caused confusion for German lenders 32

Key issues 32

Fraud and EMV 32


competitor and product overview 35

Card scheme market shares 35

Pay now cards 35

Value of transactions 36

Deferred debit and charge cards 37

Value of transactions 38

Credit cards 39

Value of transactions 40

Card issuer market shares 41

Leading card issuers in Germany 41

Pay now issuer market shares 41

Pay later competitor market shares 42

Credit card issuer market shares 43

Balances outstanding 44

Competitor developments 45

Consolidation in the German market has been limited 45

Most recently, Commerzbank announced it is to take control of Eurohypo 46

June 2006 saw FORTIS announce the launch of a chain of credit shops 46

New entrants 47

ING entered the card market through its DiBa brand 48

Product analysis 48

Pay later card design 48

Credit card design 48

Product innovation 49

There are three major payment card loyalty programs in Germany 49

The success of these programs has seen loyalty become an ever more important feature of the market 52

Citibank offers free cash withdrawals for credit card holders 52

Prepaid cards are also being developed 53

Forecasting the payment card market in Germany 54

Forecasting the pay now card market 54

Forecasting the credit card market 56

Forecasting the charge and deferred debit card market 57

Conclusions 60

The German payment card market faces several challenges 60

It could prove hard to alter consumer habits 60

This is not helped by the limited infrastructure in Germany 60

The German market also presents significant opportunities for issuers 60


Supplementary data 61

Market context 61

Forecasting the payment card market in Germany 64

Definitions 65


Affinity card 65


Co-branded card 66

Credit card 66

Deferred debit and charge card 66

EMV 66

EPC 66

ePurse 66

Merchant Service Charge 67

Pay now cards 67

PoS terminal 67

Private label cards 67

Methodology 67

Cards and Payments Database 68

Further reading 68

Ask the analyst 69

Datamonitor consulting 69

Disclaimer 69

List of Tables

Table 1: GDP per capita for selected European countries, 2006 12

Table 2: GINI Coefficient for selected European countries 15

Table 3: Segmentation of liquid assets in Germany, 2006 16

Table 4: Credit card offering of Barclaycard and Citibank in Germany, January 2008 49

Table 5: Datamonitor's forecast for the German pay now market, 2007-2011 55

Table 6: Datamonitor's forecast for the German credit card market, 2007-2011 57

Table 7: Datamonitor's forecast for the German deferred debit and charge card market, 2007-2011 59

Table 8: Population numbers and demographic splits in Germany and other major European countries, 2006 61

Table 9: Population over 20 in Germany and other major European countries, 2006 61

Table 10: GDP at current rates across European countries, 2006 62

Table 11: Real GDP growth rates based on constant rates to 2000, 2002-06 62

Table 12: Inflation in selected European countries, 2002-06 63

Table 13: The total number of ATM terminals and the number of people per ATM, Germany 2002-06 63

Table 14: The total number of POS terminals and the number of people per terminal, Germany 2002-06 63

Table 15: Penetration level of cards in selected European countries, 2006 64

Table 16: Credit card balances outstanding in Germany, 2004-2006 64

Table 17: Pay now card forecasts indexed to 2006 64

Table 18: Credit card forecasts indexed to 2006 65

Table 19: Charge card forecasts indexed to 2006 65

Table 20: Current relevant Datamonitor publications, 2007 68

Table 21: Future relevant Datamonitor publications, 2008 69

List of Figures

Figure 1: Country overview of Germany, 2007 7

Figure 2: Germany has the largest population in Europe, 2006 8

Figure 3: Germany has a relatively high proportion of adults, 2006 9

Figure 4: Germany has the largest economy in Europe, 2006 10

Figure 5: Germany has suffered from sluggish economic growth but growth rates have improved, 2002-2006 11

Figure 6: The service sector dominates the German economy, 2006 13

Figure 7: Inflation in Germany has been kept well in control, 2002-2006 14

Figure 8: Card based payments are not popular in Germany, 2002-2006 17

Figure 9: Pay now cards are by far the most popular type of payment card in Germany, 2002-2006 18

Figure 10: Germany has 1.4 cards per person, about the European average 19

Figure 11: The number of card transactions in Germany has risen slightly, 2002-2006 20

Figure 12: Pay now cards are used most frequently in Germany, 2002-2006 21

Figure 13: Pay now cards account for the majority of transaction values in Germany, 2002-2006 22

Figure 14: Debit cards have the highest average transaction value in Germany, 2002-2006 23

Figure 15: Germany has a limited but slowly growing POS network, 2002-2006 24

Figure 16: Germany has a slowly growing ATM network, 2002-2006 25

Figure 17: The three pillars of German banking, 2007 26

Figure 18: Banking groups in the three pillars, 2007 27

Figure 19: Regulatory overview of Germany, 2007 28

Figure 20: Maestro is the dominant scheme for pay now cards in Germany, 2002-2006 36

Figure 21: Maestro accounts for 99% of pay now transactions in Germany, 2006 37

Figure 22: An increasing proportion of deferred debit and charge cards are being issued on the Visa scheme in Germany, 2002-2006 38

Figure 23: MasterCard still accounts for the majority of transaction values on deferred debit and charge cards, 2002-2006 39

Figure 24: MasterCard has a slight edge over Visa in the credit card market in terms of cards in issue, 2002-2006 40

Figure 25: The majority of credit card transaction value in Germany is on the MasterCard scheme, 2002-2006 41

Figure 26: The Sparkassen are the biggest issuers of debit cards in Germany, 2006 42

Figure 27: The Sparkassen and Volks- und Raiffeisenbanken are the two leading players in the pay later card market, 2006 43

Figure 28: Barclaycard is the top player in the credit card market in terms of cards in issue, 2006 44

Figure 29: Barclaycard is by far the biggest issuer of credit cards in Germany in terms of outstanding balances, 2006 45

Figure 30: Overview of main mergers, 2007 47

Figure 31: The Payback loyalty scheme has a wide range of merchant partners 51

Figure 32: HappyDigits has a popular co-branded card 52

Figure 33: The German pay now market will experience slow growth to 2011 55

Figure 34: The German credit card market will grow rapidly, 2007-2011 57

Figure 35: Growth in the German deferred debit and charge card market is expected to slow, 2006-2011 58

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