Moneysupermarket.com is planning an IPO, which apparently values the company at $2 Bn. Banknet360

This from the moneysupermarket site.

The contents of the Share Offer Pages, which have been prepared and are the sole responsibility of the Company, have been approved by Credit Suisse Securities (Europe) Limited (“Credit Suisse”), One Cabot Square, London E14 4QJ, solely for purposes of section 21(2)(b) of the Financial Services and Markets Act 2000.

Credit Suisse, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for the Company and no-one else in connection with the initial public offering of Ordinary Shares of moneysupermarket.com (“Global Offer”) and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Credit Suisse, nor for providing advice in relation to the Global Offer, the contents of this website, or any transaction or arrangement referred to herein.

Source: Moneysupermarket.com

There are lots of comparison sites and their credibility is hurt by poor design, and lack of credibility. Often they are fronts for a big bank or credit card company. Moneysupermarket is the first that I am aware of to rise above all that, and establish itself as a credible source. They compare many consumer services, from banking to insurance to airport parking.

This from their prospectus.

moneysupermarket.com is the UK’s leading finance price comparison website and a leading UK travel price comparison website. Our website attracted approximately 65 million visitors and approximately 523 million page impressions in the year ended 31 December 2006.

Revneue is from services who wish to be refelcted in the comparisons. The way in which they manage that relationship and maintain objectivity will always be the test for them. It appears they are succeeding.

Our revenue comes predominantly from fees paid by providers, advertisers and financial intermediaries. The Group generated revenues of £104.5 million and adjusted EBITDA of £33.0 million* in the financial year ended 31 December 2006, reflecting 54% and 41% increases as compared to revenues of £68 million and Adjusted EBITDA of approximately £23.3* million in the financial year ended 31 December 2005.

We discussed this concept at the Forrester Forum. This alters the role of Banks to that of a bank product manufacturer, and service prodiver. It increases reliance on the pure quality of the product to rise above the crowd. That will invariably centre on price, supported by the brand recognition of the provider.

Relevance to Bankwatch:
Internet has irrevocably altered the way in which people purchase financial products. The simple access to information, ensures that product comparison can be handled by the consumer, as part of a research process in advance of purchase. Prior to internet, this could only be accomplished by phone, or visiting locations, and picking up brochures.

This simplicity of comparison results in better educated and informed customers. The question which moneysupermarket poses, is whether customers will trust it to handle the comparison process on their behalf, and move straight to the purchase deicsion from their site. I suspect a large group will be quite willing to take this approach, and provided they maintain their objective approach, this portends a new front in the provision of banking services, with implications for Banks.

I note their is the community, word of mouth aspect is kind of separate in the site, and this would seem to be a natural fit for better integration.

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