Callcredit Blog

Budget 2014: Bingo, beer and big data

Consumer Marketing Data

Bingo and Beer have grabbed the headlines in this year’s budget speech and the #LetThemEatBingo campaign has caused a minor furore.  George Osborne also used this year’s budget speech to announce funding for big data research via the Alan Turing Institute – the ‘unexpected darling’ of the budget – quite possibly the first time ‘big data’ has been mentioned in a budget.

bingo

One of the most significant items however was pension reforms.  Those with a defined contribution pension scheme will be able to take the lump sum as cash and organise their own arrangements, ending the requirement to have to buy an annuity from 2015.  This has been dubbed the ‘Lamborghini pension’ following comments from a minister about the choice people will now have about how they spend their fund.  A quick look at Callcredit’s vehicle data shows that Lamborghini owners are most likely to be in their twenties or thirties and according to DVLA, there are only about 2,000 on the road at the moment.

The reality is that most consumers will look to invest their funds wisely and the implications of this for financial service providers will undoubtedly be significant in the medium to long term.  These could include:

  1. The need for banks to build greater insight into pension funds being accumulated by their customers well in advance of their retirement.  At the moment, this information is usually only held by the organisation managing the fund rather than being shared with other providers as credit data is.
  2. An increase in consumer demand for advice.  Might the regulator have to revisit RDR?
  3. An additional area of conduct risk for financial services providers to consider
  4. For current annuity providers, the need to develop a more diverse range of products
  5. Opportunities to create new alternatives to annuity products for providers who not currently have an annuity offering.

The other area this highlights is the need for more education to inform better financial planning for consumers.  A good start for them would be to sign up to Callcredit’s free credit reporting service, Noddle and look out for developments on the horizon with the Government’s midata initiative.  After all, a financially secure retirement will leave more time for beer and bingo, if that’s your thing.

Author: Paul Kennedy

Leave A Comment

Your email address will not be published. Required fields are marked *