Latest research from Equifax has discovered that 38% of people, in the UK, believe they always get the best deals through a comparison website. The online survey, conducted by YouGov also found that 70% of people use a comparison website when choosing a financial product.
The Competition and Markets Authority (CMA) has recently launched a market study into digital comparison tools (DCTs), including comparison websites. The study will assess whether arrangements between DCTs and the suppliers who sell through them might restrict competition, and if consumers would benefit from being aware of how DCTs earn money.
Paul Birks, Chief Data and Analytics Officer at Equifax Europe, said: “This research highlights the trust consumers place in comparison websites, which are very popular and highly rated by consumers when searching, comparing and switching financial products. Question marks have been raised over whether or not consumers ultimately get the best deal through aggregator websites. These sites are a great example of how the financial services industry is using technology and data to make consumers’ lives easier, and also have an important role in ensuring the products they promote are relevant to individual circumstances and not biased to certain providers.
“Consumers are savvy and continue to look for transparency when choosing financial products, but comparison websites can be overwhelming. For example, if searching for car insurance there are usually over 100 insurance brands to choose from! People deserve to be given transparent, clear information on the best deals available for their needs, so we welcome the CMA investigation and hope the end result will mean more transparency and a better fit of products for consumers.”