Financial services products sourced through the workplace
7 August 2006
New research from MoneyExpert.com and thomsons online benefits reveals that people claim to have sourced over 44 million financial services products through their employers over the past 12 months.
The two companies believe that as people lead busier lives, they are increasingly looking to their employers for access to help in finding and providing banking, insurance, savings and investment products – a term known as worksite marketing. Indeed, over the next 12 months, 13.2 million people expect to take out 59.35 million financial services products, an increase of 33.6% on the past year.
thomsons online benefits, the leading employee benefits consultant and technology provider, is now providing its clients with a personal finance product comparison service that has been developed in conjunction with MoneyExpert.com, the financial services product comparison website. The service will enable employers using thomsons service to help their employees find a range of financial products to meet their specific needs. Product areas covered include credit cards, personal loans, savings accounts, mortgages and general insurance.
In terms of the financial products people in work claim to have sourced through their employers over the past year, 38% said a pension, the highest of any product. However, the research revealed that a large number of people have been finding all types of financial services products through their employers. 11% of those in work - some 2.65 million people – claim that they have sourced a credit card through work over the past 12 months, and 19% have found car insurance through their employer.
Michael Whitfield, Managing Director of thomsons online benefits said: “Employees are increasingly turning to their employers for help in managing their finances. As the percentage of employers offering flexible benefits increases, this trend will continue to grow and worksite marketing will become much more important as a distribution channel for financial services products.”
Sean Gardner, Chief Executive, MoneyExpert.com said: “The retail financial services market is becoming increasingly crowded, with thousands of different products to choose from. This can be confusing for people and even when they have decided which product to apply for, there is no guarantee that their applications will be accepted because banks are becoming increasingly selective in who they lend money to. Our service, and the proposition we have helped develop for thomsons online benefits, helps address these issues. Propositions such as ours should fuel further growth in worksite marketing.
“This helps explain why our research suggests that over the next 12 months, over 162,000 financial services products are likely to be sourced through the workplace every day.”
