服务业营销lecture-07.pdf

LESSON 7 FINANCIAL SERVICES MARKETING AND REGULATIONS The objective of this lesson is to have an insight into: Characteristics of financial service marketing Financial service regulations and legislations Marketing and competitive environment Financial service marketing mix FINANCIAL SERVICES MARKETING Introduction The financial services industry in the UK has experienced massive change since the early 19805. Prior to this time, banks and building societies served different customer needs, often catering to different sets of customers. Regulatory frameworks and traditional business practices meant that there was virtually no competition between types of institution. Building satieties offered savings and mortgages while banks provided current accounts, loans and business finance. Insurance and investments were also largely dealt with by specialist brokers. The removal of many barriers to competition has been brought about through. deregulatory legislation such as the Building Societies Act of 1986, which broadened the scope of building society business activity. This has -led to intense competition as the boundaries between banks and building societies have faded. Additionally the size of the market continues to grow, as does the range of services available, due to the increased sophistication of consumers and their willingness to buy or invest in complex financial products. As well as traditional life insurance and other types of insurance and savings policies, higher-risk products such as Personal Equity Plans, shares and Unit Trusts are in demand from a far greater number of consumers than ever before. The Financial services Act of 1986 brought in some safeguards to regulate the financial services industry and protect the consumer. It remains a highly lucrative business area in wh