• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Analyse the consequences of current factors and trends on financial services.

Extracts from this document...


Transfer-Encoding: chunked I am currently working as a trainee journalist for ITV and I have produced articles them and researched and provided production for the financial services in the UK. Word is getting around about my knowledge and understanding and the FCA has invited me to address its members. I now am going to produce a report to the FCA analysing the consequences of current factors and trends and their likely impact on financial service provision in the next five years. Demographics are likely to have impact on financial services provision. In the UK we have an ageing population problem and this has implications on the provision of pensions. Life expectancy for men is 78 and for women is 82. However, if you reach 65, it increases to 84 for men and 86 for women. Because we have an aging population it means people are living for much longer and puts strain on the government because they are forced to pay state pension which is around £155.65 a week for a longer period of time. In the next 5 years the pensionable age for women will increase from 60 to 65 which means that the government will save money on state pensions to women. ...read more.


Therefore by upgrading the ICT at post offices, it meant that anyone could go to a post office and open an account and the government could then deposit things such as pensions into these accounts. In the next 5 years, people with banking accounts will increase due to the easiness and effectiveness of internet banking. Also post offices will be offering more retail banking facilities and will be widely used such as credit cards, mortgages and loans. With the change of technology, this problem will slowly decrease due to the widespread of the internet. Furthermore, low inflation will have impact upon financial service provision over the next five years. This has implications for endowment policies returns and retirement annuity rates; these policies can be linked to the rate of inflation which is currently 0.5% in the UK. If the rate is very low like it is currently, it means the monthly payments are not going to rise and therefore the returns will be fairly low in time to come. However, if the inflation rate is higher, the monthly payments will go up. ...read more.


Lastly, 0% APR finance means that if you get finance for an expensive product you do not get any interest. In the next 5 years, more innovative and new products will come into the market. Lastly, the credit crunch has impact upon financial service provision over the next five years. The credit crunch started in the USA and banks were providing loans and mortgages to unreliable borrowers who has low credit history and income and they couldn?t pay is back. The government had to then pay the banks out with tax payer?s money. This had direct impact on savings and mortgages because the banks now conduct in depth research on the customer before providing them any financial services as they do not want to make the same mistake again; it will be a lot harder to obtain mortgages and loans. In the next 5 years the economy will improve and people?s salaries may improve. The banks will not lower their policies on loans and mortgages because they have learnt from their previous mistakes. In conclusion, there are many factors and trends likely to impact upon financial services provision over the next five years in the form of demographics, nature of work, financial inclusion, low inflation, technological developments, distribution channels, innovation and new products and lastly the credit crunch. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. In This unit I am gong analyse the product knowledge required by employees of ...

    I gave a questionnaire to ten Alton Towers staff. The purpose of this was to allow me the analysis the effectiveness of Alton Towers's product knowledge. Alton Towers Questionnaire As part of our Unit 2 coursework we had to create some primary research.

  2. The Impact of Migration on the Reduction of Poverty

    The quality of such data, the biases it may contain would reflect on the validity of the conclusions. More over, the researches on which we would relying for drawing conclusions relate to the time period when Mexico was experiencing buoyancy in remittances and with the global melt down that started

  1. PEST is a planning tool which is used by a business to evaluate and ...

    This will mean that the business could be at risk from giving their customers diseases such as salmonella or Escherichia coli this disease can cause serious food poisoning in people, this will mean that businesses will have to have a product recall; this will be very expensive for the business


    On the other h?nd, other studies h?ve recognized th?t the ?ffect experienced during the ?cquisition ?nd consumption of the product or service c?n ?lso h?ve ? signific?nt influence on satisfaction judgments. The role ?ffective dimension in est?blishment ev?lu?tion h?s not been overlooked by rese?rch th?t satisfaction c?nnot be completely understood without the study of its ?ffective dimension.

  1. D1 Analyse how developments in the consumer market have impacted on Tescos

    Tesco or Morrison?s for example have these finest ranges where people with more spending power and who have a taste in good quality food. Affluence has also increased because in modern days, people have more money to spend on the food of their choice and the food they need e.g.

  2. D1: Analyse how developments in the consumer market have impacted on Tescos.

    Consumers can be broken down into three groups: those who are expected to buy, those who are not expected to buy, and those who are undecided about making a purchase. What customers think and feel about a company and/or its products is a key aspect of business success also.

  1. Does UK and EU legislation and regulation inspire investor confidence in the UK financial ...

    It also has to check that changes in firm behavior, rather than short-term responses to regulatory pressure that could fall away if the regulator?s focus moves elsewhere. This means the regulation can only give a short-term pressure to the firm and the regulator has no incentive to fix the root of the problem.

  2. RELATIONSHIP MARKETING - factors affecting customer satisfaction

    CRM solutions provide the customer business data to help you provide services or products that customers want, providing better customer service, and cross-sell and up sell more effectively, close deals, retain current customers and understanding who the customer is. Focusing on the relationship Hershey?s use three steps to build customer relationships: 1.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work