|By PR Newswire||
|December 17, 2012 11:41 AM EST||
CHESTER, England, December 17, 2012 /PRNewswire/ --
This year continued where 2011 left off, with consumers feeling the pressure of the rising cost of living and further austerity measures for the nation's finances. With 2013 just around the corner, experts from Britain's number one comparison site, MoneySupermarket.com offer their predictions for the year ahead:
- Consumer finances will continue to be hit by rising costs, changes in benefits and further austerity measures;
- Savers should look to find the best savings rates possible, as rates continue to fall;
- 2013 will be the year for improved switching of bank accounts;
- New technology will play a bigger part for Credit Cards in the year ahead;
- Funding for Lending Scheme will continue to benefit borrowers, but interest-only mortgage "time bomb" set to be a big story in 2013;
- Consumers will benefit from attractive loan rates as a result of Funding for Lending scheme;
- Payday loans set to continue to be popular in 2013, but regulation should tighten up the market;
- Effects of regulation changes will impact car insurance pricing in 2013;
- Energy efficiency will be key focus for Government and households.
Clare Francis, site editor at MoneySupermarket.com, said: "There is no doubt that 2013 will see further pressures on household bills and income with rising costs, changes to benefits and other austerity measures taking effect. For many people, it may be difficult to see the light at the end of the tunnel. It is therefore vitally important that people take full control of their household expenditure and look to reduce outgoings and free up some cash - it is possible and straightforward to claw back important pounds for the family purse.
"With austerity measures lasting until 2018 at the earliest, it is clear that the pressures on our wallets won't ease for some time so taking action and being proactive is the only real option. Checking all of your outgoings and identifying where savings can be made should be a priority in 2013. For example, look to see whether you are on the cheapest energy tariff available, or make sure you aren't throwing good money after bad by making regular payments for services you no longer require. Using a comparison website to switch products is straight forward and could save you over £1,000 over the course of the year on your household bills."
Kevin Mountford, banking expert at MoneySupermarket.com said: "As predicted, during 2012 we saw an increase in the amount of money put into savings as the continued economic uncertainty pushed consumers to save more, and reduce their debts. The likelihood is that this trend will continue into 2013. However, even though inflation has fallen, savings rates have started to drop at a faster rate. There is no sign that the Bank Base Rate will increase in 2013 and as such it will make it difficult to secure the kind of rates that we have experienced over the last couple of years. That said, there will continue to be competition in the market and as most savers are earning interest below the Bank of England Base Rate of 0.5 per cent, there are better deals to be found for those who look to switch.
"To date, banks have made huge strides in improving the switching process for current accounts but as yet this has failed to deliver the switching levels we see across other banking products. It is still the case that you are more likely to divorce than change your bank. Next year sees new switching rules come into force, forcing banks to switch accounts within seven days and also automatically re-direct any direct debits and standing orders for a period of 13 months after the move to another bank.
"These changes could also trigger the launch of further challenger products from the likes of Tesco Bank and Virgin Bank and these brands can join the likes of The Co-Operative Bank and Nationwide Building Society in trying to break the big bank strangle hold in this market. There will no doubt be more focus on fee based packaged accounts and next year there is likely to be more pressure on the free banking model.
"Early 2013 is likely to see more of the same in the card market. If consumer confidence returns and retail spending picks up, then there could be more purchase and cash-back cards hitting the market. Card issuers may look to capture 'front of wallet' status by pushing a good old fashioned flexible friend which incorporates a range of benefits such as the recently launched Asda credit card that offers zero per cent balance transfer along with cash-back and other benefits. As we have seen in 2012, providers have improved the offering on rewards cards, focusing on consumer loyalty, and we can expect further improvements in the deals available next year.
"No doubt we will see charge cards play a bigger part and new technology can further shape the way credit card users behave with the likes of e-wallet and mobile playing its part."
Clare Francis, site editor at MoneySupermarket.com said: "There was a slight improvement in the mortgage market in 2012 with the Funding for Lending Scheme (FLS) appearing to be helping the availability of mortgages for those with smaller deposits and rates have become more competitive. With the FLS continuing through 2013, I'd expect to see the impact of that filter through further to the residential mortgage market and that will hopefully mean more lenders offering competitive 90 per cent LTV products.
"However, while mortgage rates look set to remain low in 2013, and could nudge even lower because of the availability of cheap funding via the FLS, I think the trend for higher fees will continue. It's therefore really important that people don't get blinded by the headline rate when comparing mortgage deals and that they factor in the impact of the fee as well.
"Finally, I think interest-only mortgages will be a big story in 2013. The Financial Services Authority has said it thinks interest-only mortgages have a role in the market, albeit as a niche product, but with a number of lenders having already clamped down on the availability of interest-only loans, and some having stopped offering them altogether, there are real issues for many existing borrowers who have them. For some it's the question of how they'll ever repay the mortgage debt, while for those who are managing their mortgage well, there's the issue of what they'll do when their current deal ends as they may struggle to remortgage if they want to stay on interest-only. The FSA is currently looking into these issues so it will be interesting to see its conclusions and recommendations when its report is published."
Loans and Debt
Tim Moss, head of loans and debt at MoneySupermarket.com said: "With the Government's Funding for Lending scheme gathering full steam, the lenders have capitalised on this to produce the lowest loan rates on record. However, with borrowers still showing a cautious attitude, the numbers of loans available are still way off pre-Credit Crunch levels. As a result, we will still see these remarkably low headline rates remain during 2013 - which is great news for consumers. One note of caution is that while rates look attractive, banks are unlikely to change who they want to lend to - if you haven't got a perfect credit score the options to borrow remain limited.
"Consumer payday loan appetite sees no sign of abating. With bank's underwriting policies looking unlikely to change, we predict that customers will still flock to find loans in other places - for the moment Payday will remain at the top of that pile. However, with the new financial regulator, the Financial Conduct Authority (FCA), beginning work in 2013 there will be moves to tighten up the payday market. As such, those brands that adhere to the stricter guidelines will no doubt reap the rewards. However, consumers still need to exercise caution if using a payday loan as they are an expensive product and should only be used in an emergency, and if you have a clear way of repaying that loan at the end of the month.
"With increasing regulatory pressure being placed on the paid-for debt solution market, many companies' business models will struggle. It is likely that upfront fees will be outlawed next year and as such, debt management companies who pressurised consumers into paying fees before entering into a plan, will see tough times. As a result, the free sector may struggle to cope with an influx of enquiries as the number of alternatives within the paid-for sector reduces. However, for those in financial difficulty, there will still be many options available to them, whether paid-for or free debt advice."
Pete Harrison, insurance expert at MoneySupermarket.com said: "The motor insurance market could become profitable in 2013 - we have seen operating losses narrow over the past two years as premium inflation and the sale of ancillary products has benefited insurers. A move to profitability will lead to greater competition and we could see further price deflation as a result. The impact of the ECJ ruling on gender will start to filter through into the New Year and it will become much clearer how motorists will be affected by the new prices. These changes in the market will make it more important than ever to shop around and not accept your renewal price from your existing insurer, as pricing is likely to fluctuate, particularly in the New Year."
Hannah Jones, head of home insurance at MoneySupermarket.com said: "Flooding will continue to be a major issue for home insurers next year, especially with the Statement of Principles coming to an end on 30 June. With over 200,000 properties at risk of having no insurance as a result, this needs to be a priority for the Government and the industry. The Funding for Lending Scheme has helped open mortgage lending a little, which in turn will increase demand for home insurance for new homeowners.
"The home insurance market is currently profitable so is attractive to existing and new insurers - as a result we can expect greater competition and potentially see further price deflation in the market as a result - a great thing for consumers."
Emma Walker, head of life insurance atMoneySupermarket.com "The impact of gender neutral on life insurance is still unknown at this stage, and we expect it will take some time to understand the true impact on pricing and the impact on consumer take-up of protection products. Behind the scenes there will be lots of challenges and discussion about how simplified products can work in practice. The role of the comparison websites will become stronger, especially as the effect of Retail Distribution Review (RDR) is felt on the financial advice market."
Clare Francis, site editor at MoneySupermarket.com said: "Energy price rises have become an annual event over recent years and I expect 2013 to be no different. However, there are simple things people can do to protect themselves from higher bills. Firstly, switch to a fixed tariff - not only could this mean a reduction in the price you pay for gas and electricity now, you will also be insulated should we see another round of price hikes in 2013. Secondly, take measures to improve the energy efficiency of your home.
"There is likely to be increased interest in energy efficiency from government and the industry in light of the 2012 Energy Bill as politicians and providers seek to encourage us to use less gas and electricity in order to offset the additional amounts we will have to pay over the coming years to cover investment in renewable energy sources. Households should take advantage of offers such as free loft and cavity wall insulation - it can knock a few hundred pounds off your annual energy bill. And look to take other steps to reduce your consumption such as turning the heating down slightly, doing your washing at a lower temperature and having showers rather than baths. All of these things make a difference and can collectively result in significant savings."
MoneySupermarket.com compares (at 29th November 2012)
- 130 car insurance brands and 99 home insurance brands
- 9 broadband providers and 20 energy providers
- 30 unsecured loan and 5 secured loan providers
- 62 mortgage lenders and 27 credit card providers
- 63 savings providers and 38 current account providers.
- Over 920,000 mobile phone deals
We help our customers to save money on all of their household bills by providing a free, easy to use online service so they can compare a wide range of products in one place and find the product most suited to their needs. Our size means we are able to offer our customers exclusive, market-leading deals, including some they can't even get direct from providers.
By having considerable volumes of informed customers actively looking for products and ready to purchase, we offer our providers an efficient and cost effective customer acquisition solution across all of our channels. This enables our providers to target their marketing spend in an effective and completely measurable way.
Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee.
Our customer commitment
- We make it easy to find the brands you expect to see
- We strive to ensure a product cannot be found cheaper by going direct
- We let you remain in control of your personal data
- We are independent and impartial
- We make it easy to switch and save
- We strive to always show the most competitive product available
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Jul. 29, 2015 07:30 AM EDT Reads: 273
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
Jul. 28, 2015 06:30 PM EDT Reads: 1,372
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Jul. 28, 2015 04:30 PM EDT Reads: 1,752
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Jul. 28, 2015 04:00 PM EDT Reads: 220
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Jul. 28, 2015 03:00 PM EDT Reads: 1,247
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
Jul. 28, 2015 02:00 PM EDT Reads: 1,157
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Jul. 28, 2015 11:45 AM EDT Reads: 411
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Jul. 28, 2015 11:00 AM EDT Reads: 2,029
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
Jul. 27, 2015 09:00 PM EDT Reads: 2,038
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Jul. 27, 2015 10:00 AM EDT Reads: 2,019
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Jul. 27, 2015 09:00 AM EDT Reads: 309
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
Jul. 27, 2015 08:00 AM EDT Reads: 1,891
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
Jul. 26, 2015 09:00 PM EDT Reads: 1,558
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
Jul. 26, 2015 08:00 AM EDT Reads: 2,140
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 25, 2015 02:00 PM EDT Reads: 379
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Jul. 25, 2015 01:00 PM EDT Reads: 1,944
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
Jul. 25, 2015 12:15 PM EDT Reads: 443
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 25, 2015 12:00 PM EDT Reads: 1,521
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Jul. 25, 2015 09:00 AM EDT Reads: 1,480
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
Jul. 24, 2015 11:00 PM EDT Reads: 2,045