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2. 2 What is the Financial Activity Bulletin ? Quarterly publication monitoring consumers expected saving, investment and debt activity in the next six months Since March 2003 also covers consumers’ main financial services providers Two questions are asked on the monthly Omnibus survey undertaken by Martin Hamblin GfK of 2,000 adults aged 16+ that also includes UK consumer confidence

3. 3 Financial activity question Consumers are asked about their financial activity intentions in the next six months across 17 categories including mortgages, pensions, cash deposits, ISAs, shares, unit trusts, personal loans, plastic cards, life insurance, debt repayment, property purchase

4. 4 Bulletin Contents The retail financial services environment The mood of the consumer The demand for savings, investment and borrowing products in the next 6 months The supply of savings, investment and borrowing products in the next 6 months Conclusions

5. 5 Savings / investment and debt activity June 2002-Sept 2004 Type of financial activity June 2002- Sept 2004 (average %) September 2004 (%) Overall activity 7981 Savings / investment 6670 Borrowing 2221 Debt repayment 3234

6. 6 Interaction of consumers with financial services September 2004 Number of intended activities 012 or 34 or 56 or more Proportion of adult population aged 16+ (%) 19 302111 Millions of adults aged 16+ 9.0 14.210.05.2 Consumer confidence -15-9-6-4-2

7. 7 Main financial activities September 2004

8. 8 Profile of financially inactive Under £14,499 household income (51%) Primary/secondary education (71%) Over aged 50+ (61%) Just making ends meet (53%)

9. 9 Current financial position of UK households and selected intended activities (%) Household type AllNo activityDebt repayment Life and pension Mortgage Saving a lot 62589 Saving a little 4524475341 Making ends meet 3453342835 Running down savings 915554 Falling into debt 64105

10. Main financial services providers and advisors Around 80% of the adult population have their main financial provider at one of the top ten bank / building society brands 28% of the population regard their main provider as also their main financial advisor 31% of the population do not have a main financial advisor Other main advisors are IFAs (19%) and friends & family (13%)

11. 11 Trust and confidence in financial services providers