Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Issues covered in this Report
- Definitions
Executive Summary
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- The market
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- Figure 1: Total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2015-20
- Market factors
- Economic contraction due to COVID-19 for both Irish economies
- High level of switching activity in NI, but not in RoI
- Cost of current accounts in RoI hampering multiple ownership
- Impact of COVID-19 on current accounts
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- Figure 2: Index of total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2014-25
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- Figure 3: Expected impact of COVID-19 on the current account sector, short, medium and long term, July 2020
- Companies and innovations
- The consumer
- Close to universal ownership of current accounts
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- Figure 4: Ownership of current accounts, NI and RoI, April 2020
- Standard current accounts the most popular type of account
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- Figure 5: Type of current account(s) owned, NI and RoI, April 2020
- Eight providers account for 87% of NI's main account market
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- Figure 6: Where consumers have their main and non-main current account, NI, April 2020
- Two providers dominate the RoI main current account market
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- Figure 7: Where consumers have their main and non-main current account, RoI, April 2020
- Digital channels preferred for every banking activity
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- Figure 8: Methods that consumers prefer to use for selected banking activities, NI and RoI, April 2020
- Strong trust in safety of data, but no forgiveness for breaches
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- Figure 9: Agreement with statement relating to personal data and data breaches, NI and RoI, April 2020
- Consumers want more options and greater control over overdrafts
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- Figure 10: Agreement with statement relating to attitudes and preferences around overdrafts, NI and RoI, April 2020
- COVID-19 brings debt into focus
- A quarter of consumers have been frustrated by an IT failure
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- Figure 11: Agreement with statement, 'An IT failure in the last 12 months at my bank has left me unable to access online/mobile services', by age, NI and RoI, April 2020
The Market – What You Need to Know
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- COVID-19 pandemic to have lasting impact on sector
- NI and RoI economies set to contract significantly in 2020
- Strong switching activity in NI - but not among RoI consumers
- Increasing cost of current accounts hampering multiple ownership
The Impact of COVID-19 on Current Accounts
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- Short, medium and long-term impact on the industry
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- Figure 12: Expected impact of COVID-19 on the current account sector, short, medium and long term, July 2020
- Opportunities and threats
- Risk of unplanned debt as consumers feel financial pinch
- Consumers likely to become more price-conscious both during and after the crisis
- Leveraging history and heritage in time of crisis
- In the midst of crisis, there's a chance to rebuild bridges and loyalty
- Impact on the current account market
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- Figure 13: Index of total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2014-25
- How the crisis will affect the current account sector’s key consumer segments
- Consumers not as wary as they once were, but will they return to branches?
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- Figure 14: How worried consumers are about the risk of being exposed to COVID-19, IoI, March-July 2020
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- Figure 15: Consumers who are 'extremely worried' about the risk of being exposed to COVID-19, by age, IoI, July 2020
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- Figure 16: Agreement with statement 'I am trying to limit the time I spend in-store since the start of the COVID-19 outbreak', by gender and age, IoI, July 2020
- With cash out of fashion, consumers want more from their current accounts
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- Figure 17: Agreement with selected statements about payment methods, NI and RoI, October 2019
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- Figure 18: Agreement with statement 'I am trying avoid using cash since the start of the COVID-19 outbreak', by generation, IoI, July 2020
- How a COVID-19 recession will reshape the current accounts sector
- Economic growth and strong employment created demand for current accounts
- Migration into Ireland generated additional demand for current accounts
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- Figure 19: Emigration and Immigration, 000s, RoI, All-Ireland, 2013-19
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- Figure 20: Number of active current accounts, All-Ireland, 2009-18
- A COVID-19 recession to precipitate decline in number of active accounts
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- Figure 21: How consumers feel COVID-19 will make an impact on selected factors, NI and RoI, June 2020
- COVID-19: Market context
Market Size and Forecast
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- Marginal increase in number of active current accounts in Ireland in 2020
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- Figure 22: Total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2014-25
- Moderate growth in current account market in coming years
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- Figure 23: Index of total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2014-25
Market Drivers
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- RoI's GDP expected to contract by 8.5% in 2020
- NI economy set to contract by 7.5% in 2020 as a result of COVID-19
- Low and declining level of switching among RoI consumers
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- Figure 24: Annual current account switching volumes, RoI, 2014-18
- Number of current account switches down in NI due to COVID-19
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- Figure 25: Monthly current account switching volumes, UK (including NI), October 2019-June 2020
- In Q1 2020, NI-based providers lost 1,600 accounts to account switching
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- Figure 26: Current account switching, net gains/losses, UK (including NI), Q2 2020
- Majority of consumers who switch current account provider are glad they did
- Majority of UK (including NI) consumers aware of current account switching service
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- Figure 27: Consumer awareness of Current Account Switch Service, UK (including NI), October 2019-June 2020
- Cost of current accounts continuing to increase for RoI consumers
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- Figure 28: Current account maintenance fees per annum, RoI, March 2020
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- Figure 29: Current account fees per transaction/activity, RoI, March 2020
Companies and Brands – What You Need to Know
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- COVID-19 affecting banks across NI/RoI
- Monzo offers new current account
- Competition enters the RoI market
- Understanding how artificial intelligence can support banking
Who’s Innovating?
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- Banks across the IoI competing for customers during COVID-19
- Halifax Reward’s
- Committing to help the local community during COVID-19
- Monzo offers new current account
- Artificial intelligence in banking
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- Figure 30: Consumers who feel AI will have a positive impact on society, by age, Canada, October 2019
- Bunq enters Irish market
Companies and Brands
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- Allied Irish Bank
- Key facts
- Product portfolio
- Recent developments
- An Post (RoI only)
- Key facts
- Product portfolio
- Recent developments
- Bank of Ireland
- Key facts
- Product portfolio
- Recent developments
- Danske Bank (NI only)
- Key facts
- Product portfolio
- Recent developments
- EBS (RoI only)
- Key facts
- Product portfolio
- Recent developments
- Halifax (NI only)
- Key facts
- Product portfolio
- Recent developments
- HSBC (NI only)
- Key facts
- Product portfolio
- Recent developments
- KBC Ireland (RoI only)
- Key facts
- Product portfolio
- Recent developments
- Nationwide (NI only)
- Key facts
- Product portfolio
- Recent developments
- Permanent TSB (RoI only)
- Key facts
- Product portfolio
- Recent developments
- Santander (NI)
- Key facts
- Product portfolio
- Recent developments
- Ulster Bank (NI only)
- Key facts
- Product portfolio
- Recent developments
The Consumer – What You Need to Know
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- Almost every Irish consumer has at least one current account
- Most consumers have a standard current account
- Most NI consumers obtain main account from one of eight providers
- RoI main current account market dominated by Big Two providers
- Consumers prefer mobile or online banking over branches
- Consumers trust providers to protect data, but won't tolerate breaches
- Give us more options and control over overdrafts, say consumers
- A quarter of consumers have experienced disruptive IT failure
Ownership of Current Accounts
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- Near universal ownership of current accounts among Irish consumers
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- Figure 31: Ownership of current accounts, NI and RoI, April 2020
- More than a third have multiple current accounts
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- Figure 32: Consumers who own more than one current account, by socio-economic background and household income, NI and RoI, April 2020
- Slight decline in multiple account ownership between 2019 and 2020
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- Figure 33: Consumers who own more than one current account, NI and RoI, June 2019 and April 2020
- Majority of consumers have accounts only in their own name
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- Figure 34: Whether consumers hold account in own name, jointly, or both, NI and RoI, April 2020
Type of Current Account Owned
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- Most consumers content with standard current account
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- Figure 35: Type of current account(s) owned, NI and RoI, April 2020
- Few consumers opt for fee-paying reward or packaged accounts
- Standard accounts have across-the-board universal appeal
Where Current Accounts Are Held
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- Eight providers account for bulk of NI's main account market
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- Figure 36: Where consumers have their main current account, NI, April 2020
- No dominant provider in NI's non-main current account market
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- Figure 37: Where consumers have their non-main current account, NI, April 2020
- RoI main account market dominated by just two providers
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- Figure 38: Where consumers have their main current account, RoI, April 2020
- Slightly more competition in RoI's non-main account market
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- Figure 39: Where consumers have their non-main current account, RoI, April 2020
Preferred Methods for Banking Activities
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- Consumers prefer digital channels for every banking activity
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- Figure 40: Methods that consumers prefer to use for selected banking activities, NI and RoI, April 2020
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- Figure 41: Preferred method of conducting selected banking activities, internet (online and mobile) vs. in-branch counter service, RoI, April 2020
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- Figure 42: Preferred method of conducting selected banking activities, internet (online and mobile) vs. in-branch counter service, NI, April 2020
- Mobile banking apps now the go-to method for most activities
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- Figure 43: Consumers who prefer to use mobile banking (ie app/website) for selected banking activities, NI and RoI, April 2020
- Online banking trailing mobile banking for all activities
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- Figure 44: Consumers who prefer to use online banking (using a desktop/laptop) for selected banking activities, NI and RoI, April 2020
- Branches still valued where guidance or advice may be needed
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- Figure 45: Consumers who prefer to use in-branch counter services for selected banking activities, NI and RoI, April 2020
Personal Data and Data Breaches
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- Consumers trust providers to protect data, but a breach could be costly
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- Figure 46: Agreement with statement relating to personal data and data breaches, NI and RoI, April 2020
- Trust in providers broadly consistent across all demographics
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- Figure 47: Agreement with statement that 'I trust my current account provider to protect my personal data', by age and socio-economic background, NI and RoI, April 2020
- Younger consumers and ABC1s most likely to switch if trust broken
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- Figure 48: Agreement with statement that 'Data breaches would prompt me to change current account provider', by age and socio-economic background, NI and RoI, April 2020
Attitudes and Preferences Around Overdrafts
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- Consumers would like more leeway and greater control over overdrafts
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- Figure 49: Agreement with statement relating to attitudes and preferences around overdrafts, NI and RoI, April 2020
- Big majority want banks to offer free 'buffer' for minor overdrafts
- One in three would like option to turn their overdraft into a loan
- Majority of consumers want more control over overdraft limits
- Around a third expect to need overdraft due to pandemic
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- Figure 50: Agreement with statement, 'I expect the coronavirus outbreak might see me needing to use an overdraft', by age, NI and RoI, April 2020
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- Figure 51: Agreement with statement, 'I expect the coronavirus outbreak might see me needing to use an overdraft', by income level and socio-economic background, NI and RoI, April 2020
Frustration with IT Failures
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- Around a quarter of all consumers have been affected by an IT failure
- Younger consumers most likely have experienced IT failure
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- Figure 52: Agreement with statement, 'An IT failure in the last 12 months at my bank has left me unable to access online/mobile services', by age, NI and RoI, April 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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