Table of Contents
Introduction
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- Report scope and product definitions
- Abbreviations
Executive Summary
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- The market
- The market will continue to grow, albeit steadily
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- Figure 1: Forecast of retail savings balances, at current prices – fan chart, 2007-17
- Sub-sector performance
- Size of the saver population
- Market factors
- Poor savings environment acts as a disincentive to save
- Low confidence and low returns
- Companies, brands and innovation
- Largest providers of savings accounts
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- Figure 2: Providers’ share of total retail savings balances, shown on a group basis – UK, 2012
- Brands score poorly on trust and differentiation
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- Figure 3: Attitudes towards and usage of selected brands in the deposit and savings account market, December 2012
- Online account management has become the preferred channel
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- Figure 4: Channel most used to access savings account, by type of account held, January 2013
- Savings providers cut back adspend in 2012
- The consumer
- Two fifths of savers hold more than one savings account
- An easy-access account is the most popular cash savings product
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- Figure 5: Ownership of cash savings products, by type of account, January 2013
- A quarter of adults save every month without fail
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- Figure 6: Saving frequency, January 2013
- Savings intentions over the coming six months
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- Figure 7: Amount expected to save within the next six months relative to the previous six months, January 2013
- More than a quarter of savers are considering alternative places to invest their cash
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- Figure 8: Agreement with statements about saving and savings accounts, January 2013
- What we think
Issues in the Market
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- Is competition increasing the savings market?
- What types of savings accounts are consumers favouring?
- How frequently are they saving?
- Do consumers trust savings providers to look after their money?
Trend Application
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- Trend: FSTR HYPR
- Trend: Prove It
- Mintel’s futures: Access Anything, Anywhere
Market Drivers
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- Key points
- Savers are being penalised by a low base rate and high inflation
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- Figure 9: Average annual changes in the Bank of England base rate, CPI and RPI – UK, 2004-13
- Negative rates mooted but very unlikely
- Online accounts offer better rates of return than their branch-based equivalents
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- Figure 10: Average monthly quoted branch-based deposit interest rates, January 2006-January 2013
- Introduction of FLS has further depressed savings rates…
- …and reduced product availability
- Economic downturn prompted rise in the savings ratio…
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- Figure 11: Gross household savings and saving ratio, seasonally adjusted and at current prices, 2001-12
- …though this doesn’t necessarily mean people are saving more
- Wider economic backdrop
- Household income squeeze will remain a key feature of 2013
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- Figure 12: Monthly change in RPI and average weekly earnings, January 2008-December 2012
- Ongoing eurozone debt crisis threatens to further undermine confidence
- Consumer sentiment languishes in negative territory
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- Figure 13: GfK Consumer Confidence Barometer – UK, January 1989-January 2013
- Both saving and spending confidence remain weak
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- Figure 14: Saving and spending confidence, March 2001-September 2012
- Two fifths of people have ‘added to their savings’ in the past three months…
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- Figure 15: Usage of disposable income – recent past and near future, January 2013
- …but savings intentions have receded over the past few months
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- Figure 16: Cash deposit intentions, March 2006-December 2012
- More people are motivated to save by short-term materialistic goals than a desire to ensure a comfortable retirement
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- Figure 17: Main reasons for saving, February 2012
Competitive Context
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- Key points
- Cash ISAs: both a rival and a variant product
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- Figure 18: Value of new ISA subscriptions, 2006/07-2011/12
- Far fewer people hold equities than cash savings
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- Figure 19: Ownership of savings and investments, by asset type, November 2012
- Improved stockmarket performance could attract disillusioned savers
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- Figure 20: FTSE 100 and FTSE All-Share – daily index movements, January 2004-February 2013
Market SWOT Analysis
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- Figure 21: Retail savings accounts – SWOT analysis, 2013
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Who’s Innovating?
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- Key points
- Improved funding situation reduces incentive to innovate
- The banks are putting greater focus on their current accounts…
- Santander’s 123 Current Account
- M&S Bank launches Premier Current Account
- Lloyds TSB’s Vantage offer
- Nationwide enters the packaged account market
- …and existing customers
Market Size and Forecast
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- Key points
- Retail deposits increase by 5% in 2012
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- Figure 22: Retail savings balances, by sector, 2003-12
- More money flowing into time accounts, as savers seek to bolster their returns
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- Figure 23: Volume and value of individual interest-bearing current and deposit accounts (MBBGs only), 2003-11
- A sizeable customer base
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- Figure 24: Estimated number of retail savers in the UK, by type of account, January 2013
- Very steady growth trend is forecast to continue
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- Figure 25: Forecast of retail savings balances, at current prices – fan chart, 2007-17
- Figure 26: Forecast of total retail savings balances, 2012-17
- Forecast methodology
- Fan chart explanation
Market Share
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- Key points
- Halifax is the leading brand in the retail savings account market
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- Figure 27: Ranking of largest providers of savings accounts, by proportion of customers, January 2013
- Provider rankings based on overall retail savings balances
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- Figure 28: Providers’ total retail savings balances, shown on a group basis – UK, 2010-12
Companies and Products
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- Lloyds Banking Group
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- Figure 29: Key annual financial data for Lloyds Banking Group, 2011 and 2012
- Nationwide Building Society
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- Figure 30: Key interim financial data for Nationwide Building Society, H1 2011 and H1 2012
- Santander
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- Figure 31: Key annual financial data for Santander UK, 2011 and 2012
- Barclays
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- Figure 32: Key annual financial data for Barclays Plc, 2011 and 2012
- HSBC
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- Figure 33: Key annual financial data for HSBC Bank Plc, 2011 and 2012
- RBS Group
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- Figure 34: Key annual financial data for RBS Group, 2011 and 2012
Brand Research
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- Brand map
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- Figure 35: Attitudes towards and usage of selected brands in the deposit and savings account market, December 2012
- Correspondence analysis
- Brand qualities
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- Figure 36: Brand attributes and qualities, by selected brands operating in the deposit and savings market, December 2012
- Brand personality
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- Figure 37: Deposit and savings account brand personality – macro image, December 2012
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- Figure 38: Deposit and savings account brand personality – micro image, December 2012
- Brand experience
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- Figure 39: Usage of brands operating in the deposit and savings market, December 2012
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- Figure 40: Satisfaction with various brands operating in the deposit and savings market, December 2012
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- Figure 41: Consideration of brands that operate in the deposit and savings market, December 2012
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- Figure 42: Consumer perceptions of current brand performance of selected brands operating in the deposit and savings market, December 2012
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- Figure 43: Deposit and savings account brand recommendation – Net Promoter Score, December 2012
- Brand index
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- Figure 44: Deposit and savings account brand index, December 2012
- Figure 45: Deposit and savings account brand index vs. recommendation, December 2012
- Target group analysis
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- Figure 46: Target groups, December 2012
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- Figure 47: Usage of brands operating in the deposit and savings market, by target groups, December 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Brand Communication and Promotion
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- Key points
- 2012 sees sharp fall in industry adspend
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- Figure 48: Total advertising expenditure on cash savings products, 2008-12
- In 2012 savings providers spent more on their brands
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- Figure 49: Total advertising expenditure on cash savings products, by product type, 2008-12
- TV claimed the largest share of sector adspend in 2012
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- Figure 50: Distribution of adspend on cash savings products, by media type, 2010-12
- Halifax was once again the highest-spending advertiser in the savings account market in 2012…
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- Figure 51: Top ten advertisers of savings accounts (excluding cash ISAs), 2010-12
- …while sister brand Lloyds TSB invested the most in the cash ISA market
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- Figure 52: Top ten advertisers of cash ISAs, 2010-12
Channels to Market
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- Key points
- Greater focus on remote channels underpins steady decline in the UK branch network
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- Figure 53: UK bank and building society branch networks, 2003-11
- Most savers access their accounts online
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- Figure 54: Channel most used to access savings account, by type of account held, January 2013
Number of Accounts Held and Switching Activity
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- Key points
- Many people hold multiple savings accounts
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- Figure 55: Number of savings accounts held, 2009-12
- Fairly stable customer churn
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- Figure 56: Percentage of savers who have opened a new savings account within the past 12 months, 2009-12
Types of Savings Account Held
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- Key points
- Survey background
- Roughly four in five UK adults have some form of cash savings product
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- Figure 57: Ownership of cash savings products, February 2012 and January 2013
- Over-55s are most likely to have savings…
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- Figure 58: Ownership of cash savings products, by gender and age, January 2013
- …due to their greater wealth accumulation
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- Figure 59: Value of investible assets, by gender and age, January 2013
- Fixed-term bonds and tax-exempt savings products strongly appeal to those with substantial assets
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- Figure 60: Ownership of cash savings products, by value of investible assets, January 2013
Recent Saving Activity and Future Plans
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- Key points
- One in four adults are managing to save every month without fail
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- Figure 61: Saving frequency, by type of savings product owned, January 2013
- Customers who are planning to save more over the next six months are offset by those who expect to save less
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- Figure 62: Saving intentions over the next six months, by type of savings product owned, January 2013
Customer Experience
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- Key points
- One in four have been treated poorly or unfairly by their savings account provider
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- Figure 63: Frequency of experiencing poor customer service within the past two years, January 2013
- Customer detriment is most common among notice account holders
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- Figure 64: Frequency of experiencing poor customer service within the past two years, by type of savings account owned, January 2013
- Nationwide has the best customer service record
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- Figure 65: Frequency of experiencing poor customer service within the past two years, by savings account provider (top seven only), January 2013
Attitudes Towards Saving and Savings Accounts
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- Key points
- Most savers are disappointed by the rates of returns they are getting
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- Figure 66: Agreement with statements about saving and savings accounts, January 2013
- Fixed-term bond holders are the most disillusioned
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- Figure 67: Agreement with statements about saving and savings accounts, by type of account held, January 2013
- A large minority of savers think it’s unsafe to keep savings at one bank
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- Figure 68: Level of agreement with statements about saving and savings accounts, by value of investible assets, January 2013
Appendix – Market Size and Forecast
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- Total market forecast – best- and worst-case scenarios
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- Figure 69: Forecast of total retail savings balances – best- and worst-case scenarios, at current prices, 2012-17
- Market forecast by sector
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- Figure 70: Forecast of total retail savings balances, by sector, at current prices, 2007-17
- Bank sector forecast
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- Figure 71: Forecast of retail savings balances – bank sector only, at current prices – fan chart, 2007-17
- Figure 72: Forecast of total retail savings balances – bank sector only, 2012-17
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- Figure 73: Forecast of bank sector retail savings balances – best- and worst-case scenarios, at current prices, 2012-17
- Mutual sector forecast
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- Figure 74: Forecast of retail savings balances – mutual sector only, at current prices – fan chart, 2007-17
- Figure 75: Forecast of total retail savings balances – mutual sector only, 2012-17
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- Figure 76: Forecast of mutual retail savings balances – best- and worst-case scenarios, at current prices, 2012-17
- NS&I sector forecast
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- Figure 77: Forecast of retail savings balances – NS&I sector only, at current prices – fan chart, 2007-17
- Figure 78: Forecast of total retail savings balances – NS&I sector only, 2012-17
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- Figure 79: Forecast of NS&I retail savings balances – best- and worst-case scenarios, at current prices, 2012-17
- Forecast methodology
- Fan chart explanation
Appendix – Brand Research
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- Figure 80: Brand usage, December 2012
- Figure 81: Brand commitment, December 2012
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- Figure 82: Brand momentum, December 2012
- Figure 83: Brand diversity, December 2012
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- Figure 84: Brand satisfaction, December 2012
- Figure 85: Brand recommendation, December 2012
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- Figure 86: Brand attitude, December 2012
- Figure 87: Brand image – macro image, December 2012
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- Figure 88: Brand image – micro image, December 2012
- Figure 89: Profile of target groups, by demographics, December 2012
- Figure 90: Psychographic segmentation, by target groups, December 2012
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- Figure 91: Brand usage, by target groups, December 2012
- Brand index
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- Figure 92: Brand index, December 2012
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Appendix – Ownership of Savings Accounts
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- Figure 93: Ownership of cash savings products, by demographics, January 2013
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Appendix – Value of Investible Assets
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- Figure 94: Value of investible assets, by demographics, January 2013
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Appendix – Customer Profiles for the Top Seven Providers
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- Figure 95: Comparison of customer profiles for the top seven providers of savings accounts, by demographics, January 2013
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Appendix – Recent Savings Activity and Future Plans
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- Figure 96: Saving frequency, by demographics, January 2013
- Figure 97: Saving frequency, by value of investible assets, January 2013
- Figure 98: Saving intentions over next six months, by demographics, January 2013
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- Figure 99: Saving intentions over the next six months, by value of investible assets, January 2013
- Figure 100: Saving intentions over next six months, by provider of easy-access savings account (top seven only), January 2013
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Appendix – Customer Experience
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- Figure 101: Experience of poor customer service within past two years in relation to savings accounts, by demographics, January 2013
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Appendix – Attitudes Towards Saving and Savings Accounts
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- Figure 102: Agreement with statements about saving and savings accounts, by demographics, January 2013
- Figure 103: Agreement with further statements about saving and savings accounts, by demographics, January 2013
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- Figure 104: Level of agreement with statements about saving and savings accounts, by account provider (top seven only), January 2013
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