Using the Internet as a marketing distribution channel by ps94506

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									 Using the Internet as a
 marketing/distribution channel
Julian Wells
Head of Marketing, Mortgages plc
Mortgage Business Expo
16-17 November 2005
Agenda


Introduction

The mortgage market

 ●   Strategic importance of the Internet

 ●   Financial Promotions and online marketing

 ●   Promoting mortgages online

Summary




                              1
Strategic importance of the Internet
Strategic importance of the internet
Mortgage market


 Well known arguments in favour of being online…

  ●   Email is instant and cost effective (no printing and posting)

  ●   Website is open all hours - your 24 hour salesperson

 The mortgage industry has been slow to adapt, but
 intermediaries and product providers are now advancing

 Popularity and usage set to continue to grow



                                  3
Strategic importance of the internet
Mortgage market

You now need to be online
  Some providers only accepting electronic forms
  Online exclusive products and services
  Advantages of being on the Internet from efficiency /
  service perspective
  Customer expectation has grown
   ●   Consumers like to feel they are using most up to date
       technology to find their mortgage



                                 4
Strategic importance of the internet
Mortgage market


The Internet & the FSA aren’t an obvious match!

  Internet best practice says:
   ●   The fewer clicks the user has to make, the better
        − Because the online consumer is lazy and impatient
        − Because they don’t have time to read smallprint

  The FSA says:
   ●   You must present all the information required by the FSA on
       your website and emails
        − Because your site should be clear, fair, and not misleading
        − Because disclosure is important online


                                      5
Financial Promotions
 The theory & the reality
 The Internet
Financial Promotions

The theory

 Qualifying Credit Promotions
    Includes: Brochures, adverts, websites, telesales, mailshots,
    emails, presentations etc etc..

    All promotions must be approved by an FSA authorised firm

    Must be “clear, fair, and not misleading” and “balanced”

    Any statements/claims must be backed up with evidence

     ●   E.g. ‘We will save you money on your mortgage’

    Applies to virtually all marketing direct to the public


                                   7
Financial Promotions

The theory

 Qualifying Credit Promotions
    If you mention product rates, you must quote an APR

    For all non conforming adverts, you must quote a
    representative APR

    There are also a number of risk warnings required on
    non-conforming and debt consolidation promotions




                           8
Financial Promotions in Mortgages


 How are we doing?
   251 mortgage adverts reviewed in April/May 2005
   in editions of consumer mortgage press
    ● Approximately 25% potentially non-compliant promotions


   A further 75 reviewed in September
    ● Approximately 31% potentially non-compliant promotions

    ● New problems being found in recent promotions

    ● Due prominence is a common fault


   Non-conforming market is biggest culprit
                                        Source: Mortgages plc research findings




                               9
Financial Promotions in Mortgages

An increasingly high profile topic in the industry




                                  10
Financial Promotions in Mortgages

Mortgage Introducer is calling for an industry standard




                                 11
Financial Promotions in Mortgages



                           Mortgages plc has
                           published a marketing
                           guide for mortgage
                           intermediaries

                           Available free of charge

                           Downloadable from our
                           website at
                           www.mortgagesplc.com

                           Free copies available on
                           the Mortgages plc stand
                           today

                      12
How firms are promoting mortgages online
Promoting mortgages online
Online marketing
                        Lead generation tends to be
                        the key objective

                        Popular techniques include:

                        ●   Search engine marketing

                        ●   Online advertising

                        ●   Viral marketing

                        Established in prime market,
                        increasingly popular in the
                        non-conforming sector

                        Relevance is the key to
                        success!
                   14
Examples in a regulated market


                           Online lead generation

                             An effective way to generate
                             leads

                             Need to ensure websites are
                             compliant in the same way
                             adverts are

                             Any online data capture needs
                             to be carefully reviewed to
                             ensure it can not be viewed as
                             giving advice



                      15
Promoting mortgages online
Be careful not to give advice


 This will undoubtedly become a hot topic

 A website is giving advice as soon as it uses your
 personal information to promote a product to you

  ●   It must then follow full sales process (IDD, KFI…)


            Is your interactive website crossing
              the line of promoting/advising??


                               16
Promoting mortgages online
Search engine marketing

                               Techniques:
                               ●   Natural searches
                               ●   Sponsored links
                               ●   Pay per click

                               Enables you to
                               target relevant
                               consumers




                          17
Promoting mortgages online
Online advertising

                             There are many
                             opportunities to
                             promote your services
                             online
                             Choose carefully if you
                             opt for this route
                             Aim to negotiate deals
                             based on guaranteed
                             returns
                             If it sounds too good to
                             be true – it probably is!

                     18
Promoting mortgages online
Online advertising – disclosure is important




                                               Can only click
                                               thru to a fully
                                               compliant entry
                                               page




                           19
Viral Marketing




                       How does this work in
                       financial services?




                  20
Viral Marketing




         Referral

                  21
Promoting mortgages online
Lessons can be learnt from offline


                                Ongoing effectiveness of
                                small adverts is under
                                question

                                Taking a simple approach
                                to smaller adverts is one
                                solution

                                Keeping online banner
                                adverts very basic is a wise
                                approach

                           22
 Promoting mortgages online
Lessons can be learnt from offline
Advertorial

  Allows you to meet detailed
  compliance requirements and
  get your message across

  Your website will almost
  certainly need to carry more
  detail than ever before

  But… the FSA has concerns
  about case study style
  advertising
   ●   Can be deemed misleading


                                  23
Strategies in a regulated market


Other approaches

  Some firms have used
  humour to embrace
  compliance

  But… due prominence
  works both ways!!




                         24
Promoting mortgages online
Online compliance tips


3 key things to remember:
  Take a ‘zero-click’ approach to online compliance
  Ensure you have a sign off process and record
  keeping process in line with your offline one
  Carefully review any links to and from your website
  to ensure they are compliant




                            25
Summary


 FSA is taking a growing interest in Financial
 Promotions
 Opt for a simple or detailed approach – depending
 on your objectives and message
 Spend some time surfing the Internet for examples
 of good and bad practice and new ideas
 However you promote yourself on the Internet,
 make sure you are compliant!



                         26
Thank you for listening!
       Any questions?

								
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