Introduction
This case study on Standard Chartered forms part of Financial Services Consumer Insight series, as part of which best practice in specific areas of FS are highlighted.
Scope
*This case study analyses the key successful elements in Standard Chartered’s mortgage offerings
*The case study examines how the bank’s mortgage offerings appeal to consumers so strongly
*Financial Services Megatrend Framework is used to analyse the effectiveness of customer targeting strategies
Highlights
Standard Chartered’s FamilyLink products allows customers to maximize personal connections with family and friends – literally bonding family members together through the products, providing opportunities for them to help each other out, and with mutually beneficial results, too.
Reasons to Purchase
*Gain insight into the methods used by important industry players to give them a competitive edge
*Identify the implications of changing consumer behaviours
*Capitalize on the knowledge of experienced companies when entering a new niche or market
Table of Contents :
OVERVIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Introduction 2
Standard Chartered’s strength lies in it’s diversity 2
Mortgage markets globally must be injected with some much needed innovation 3
Lenders must find new ways to address the needs of disadvantaged groups such as first-time buyers 4
Mortgages can be used as a weapon in the battle to build customer loyalty 4
The UK mortgage market has been battered by the credit crunch but there is Scope for an increase in home ownership and mortgage penetration 4
Standard Chartered’s FamilyLink series (LinkOne) has been innovative in helping increase affordability for first-time buyers 5
Standard Chartered also offer a wide range of flexible repayment options that go far beyond what is available in more developed markets 10
Standard Chartered’s offerings cater strongly to the Individualism and Connectivity Megatrends 11
Individualism is key to the design of Standard Chartered’s LinkOne mortgages 11
Connectivity is key to the popularity of Standard Chartered’s mortgage offerings 11
Mortgages that enable third party contributions and guarantees could become the norm for first-time buyers in the UK 11
Increased repayment flexibility could appeal to those looking for a tailored product 12
Standard Chartered should not be complacent about its foothold in the Far East 12
APPENDIX 13
Definitions 13
The Datamonitor Financial Services Consumer Insight Megatrend Framework 13
Authenticity 13
Comfort 13
Connectivity 13
Convenience 13
Individualism 13
Wellbeing 13
Demographic Complexity 13
Financial Intelligence Complexity 13
Lifestage Complexity 14
Wealth Complexity 14
Methodology 14
Further reading 15
Ask the analyst 16
consulting 16
Disclaimer 16
List of Figures
Figure 1: The bank has enjoyed significant growth year on year, especially so over the last five years 3
Figure 2: Since the mid-1990s the affordability of first-time mortgages in the UK has halved 5
Figure 3: First-time buyer deposits have sharply escalated since the late 1990s 6
Figure 4: FamilyLink’s ‘LINK EARN SAVE’ message truly embraces the family values and generates benefits for both mortgage customers and their family members 7
Figure 5: Standard Chartered’s FamilyLink series (LinkOne) has been innovative in helping increase affordability for first-time buyers 8
Figure 6: Customer testimonials attest to FamilyLink’s popularity 9
Figure 7: Standard Chartered in Hong Kong offers several different options for repayment 10
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About the Author:
Aarkstore Enterprise specialize in providing online market business information on market research reports, books, magazines, conference booking at competitive prices, and strive to provide excellent and innovative service to our customers.
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The number of people with bad credit score has been increasing steadily. There are specialist lenders who are experienced in assessing the risk associated with bad credit. Due to their specialist knowledge they can calculate the risk and ask justifiable premium in the form of higher interest rate and arrangement fees. Although the larger lenders will not accommodate those applications, there is still competition in the bad credit mortgage market. So, for people with bad credit, there is range of products to choose from. A bad credit mortgage can help people to arrange their finances for a much longer period. In turn, they can afford to make the payments and get their financial affairs in order. They may even be able to qualify for the better rate mortgage products in a couple of years to further reduce their outgoings.
People with bad credit history are well advised to stop applying for the traditional mortgages, because most high street lenders will not entertain them. These applications and rejections will further decrease their credit score. They should seek a bad credit mortgage broker or a specialist lender who is happy to consider their applications.
Interest rates on these mortgages are higher than for traditional mortgages. This is the natural outcome of the higher risk they represent. There may be additional conditions on bad credit mortgages which are placed to provide further security to the bad credit mortgage lender. These might include a larger arrangement fee at the start of the mortgage, or stricter redemption penalties. They will be required to put much higher down payment as well. The higher down payment gives extra security to the bad credit lender who worries about the credit worthiness of the applicant.
There is another alternative which is to try to improve the credit score by keeping up with the payments and applying a bit later, usually at least 6 months. However saying this is much easier than people with financial problems to suddenly start keeping up with their payment without a change in their circumstances. So even though they may be charged higher rates and face special conditions, a mortgage (or refinance mortgage) would allow them longer time to shape their finances.
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About the Author:
JS Lee is a former mortgage broker who is now the webmaster of Refinance Home Mortgage Loan and Refinance Mortgage Loan where you can get your free credit score, check today’s rates and get mortgage quotes.
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