Table of Contents
Introduction
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- Key themes in the report
- Data Sources
- Definitions
- Abbreviations
Executive Summary
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- The Market
- Current account ownership nearing saturation
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- Figure 1: Number of current accounts owned, NI and RoI, November 2013
- Market factors
- Tentative recovery underway within Irish economies
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- Figure 2: GDP annual percentage growth, UK, NI and RoI, 2008-16
- Unemployment down, but remains a challenge
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- Figure 3: Unemployment (%) levels, RoI and NI, 2010-13
- No such thing as 'free banking' for Irish consumers
- Lack of competition in RoI market – improved competition in NI
- Significant increase in complaints about account providers in both RoI and NI
- The consumer
- Banking app most common benefit with current accounts
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- Figure 4: Benefits and features included in consumers' main current accounts, RoI and NI, November 2013
- NI consumers far more inclined to switch than RoI consumers
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- Figure 5: When consumers last switched their main current account, NI and RoI, November 2013
- High level of negativity in attitudes towards banks and banking
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- Figure 6: Agreement with statements relating to banks and banking, NI and RoI, November 2013
- Scepticism about free banking, dubious about transparency
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- Figure 7: Agreement with statements relating to charges and competition, NI and RoI, November 2013
Issues in the Market
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- What is the penetration level within the current account sector in Ireland?
- What companies are the main current account providers in Ireland?
- What benefits and features do current account holders enjoy?
- How likely are Irish consumers to switch current account providers?
- How do consumers feel about banks? Are consumers primarily positive or negative in their attitudes towards banks?
Trend Application
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- Trend: Make it Mine
- Trend: Access All Areas
- Mintel futures: Brand Intervention
Market Overview
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- Key points
- Light at the end of the tunnel for Irish economies
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- Figure 8: GDP annual percentage growth, UK, NI and RoI, 2008-15
- Unemployment down slightly – but still cause for concern
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- Figure 9: Unemployment (%) levels, RoI and NI, 2010-13
- Free banking a thing of the past for Irish consumers
- Quarterly maintenance charges now commonplace for RoI consumers
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- Figure 10: Quarterly fees, current accounts, RoI, November 2013
- NI consumers being hit with 'discreet' rather than upfront charges
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- Figure 11: Distribution of current account revenue, by income source, 2011
- Average UK (including NI) current account yield revenue of £139 per annum
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- Figure 12: Average account revenue, by type of account, UK (including NI), 2011
- Consumer campaigners targeting UK (including NI) banks' overdraft charges
- Majority of RoI consumers conscious that banking services getting more expensive
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- Figure 13: Consumers' perception about increasing cost of bank services, RoI, October 2013
- Majority say they are aware of charges – estimating less than €50 a year…
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- Figure 14: Estimated cost of bank services per annum, RoI, October 2013
- ...but the actual amount is far higher – indicating low-level consumer awareness
- Fees coming at a time when consumers already hard pressed for disposable income
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- Figure 15: How consumers rate their current financial situation, NI and RoI, November 2013
- Evolving competitive landscape in RoI – with competition returning
- New competition may come from beyond unconventional, unexpected sources
- Almost half of all RoI consumers dissatisfied with level of competition
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- Figure 16: Agreement with statement 'There is not enough competition between banks', by age, RoI and NI, November 2013
- RoI consumers less likely than NI consumers to compare competing products
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- Figure 17: Whether consumers took the first product they looked at or compared several different products when making a decision on a current account, EU27, RoI and UK (incl NI), April 2012
- Figure 18: Whether consumers took the first product they looked at or compared several different products when making a decision on selected financial products, RoI and UK (incl NI), April 2012
- Complaints by UK (including NI) consumers up 34% in 2012/13
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- Figure 19: Number of complaints relating to current accounts, UK (including NI), 2008-13
- Significant increase in complaints about 'packaged' current accounts…
- ...which perhaps led to introduction of new rules on packaged accounts?
- But official data do not tell the whole story of complaints
- UK's 'worst banks' for customer service include two NI banks
- Complaints about current accounts up 47% in RoI since 2012…
- …but the majority of banking-related complaints not upheld
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- Figure 20: Outcome of banking-related complaints, RoI, H1 2013
- More than a quarter of RoI consumers frustrated with current bank
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- Figure 21: Consumers' frustration with current providers, RoI, October 2013
- So why don't frustrated consumers simply switch to another bank?
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- Figure 22: Consumer confidence that switching banks would be quick and smooth, RoI, October 2013
- Suggesting lack of awareness that switching 'efficiency' is guaranteed
Strengths and Weaknesses
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- Strengths
- Weaknesses
Account Ownership and Market Share
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- Key points
- Only small minority do not have a current account
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- Figure 23: Number of current accounts owned, NI and RoI, November 2013
- Over a third have more than one current account
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- Figure 24: Consumers with two current accounts, by marital status, NI and RoI, November 2013
- Five 'major providers' operating in NI current account market
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- Figure 25: Financial institution used for main current account, NI, November 2013
- Nationwide commands largest share of 'other account' market
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- Figure 26: Financial institution used for other current account, NI, November 2013
- The 'Big Two' dominate the RoI current account market
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- Figure 27: Financial institution used for main current account, RoI, November 2013
- AIB strongest among the young, BoI among older consumers
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- Figure 28: Financial institutions used for main current account, by age, RoI, November 2013
- Much-needed competition in the pipeline for RoI market
Channels to Market
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- Key points
- Majority open current accounts direct, face-to-face with provider
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- Figure 29: Channel of purchase, current account, EU27, RoI and UK (incl NI), April 2012
- Even in internet age, consumers not turning backs on branch banking
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- Figure 30: Agreement with statements relating to online and branch banking, NI and RoI, November 2013
- Belief that branches redundant not confined to younger consumers
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- Figure 31: Agreement with statement 'There is little need to visit a high street branch anymore', by age, NI and RoI, November 2013
The Consumer – Current Account Benefits
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- Key points
- Banking app most common benefit with current accounts
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- Figure 32: Benefits and features included in consumers' main current accounts, RoI and NI, November 2013
- NI consumers far more likely to have benefits included with current account
- Relatively low-level awareness among consumers of added benefits
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- Figure 33: Consumers who do not know whether a particular benefit is included in main current account, by benefit, RoI and NI, November 2013
- Card protection and identity theft insurance – highly regarded benefits
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- Figure 34: Inclusion and perceived relevance of common current account benefits, NI, November 2013
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- Figure 35: Inclusion and perceived relevance of common current account benefits, RoI, November 2013
The Consumer – Switching
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- Key points
- Switching activity far higher among NI than RoI consumers
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- Figure 36: When consumers last switched their main current account, NI and RoI, November 2013
- Recent switching activity in NI – but not in RoI
- Older consumers display most loyalty to account provider
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- Figure 37: Consumers who have never switched their main current account provider, by age, RoI and NI, November 2013
The Consumer – Attitudes towards Banks, Banking and Current Accounts
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- Key points
- Irish consumers cynical and critical in views towards banks
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- Figure 38: Agreement with statements relating to banks and banking, NI and RoI, November 2013
- Cynicism most acute among men, ABC1s and self-employed
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- Figure 39: Agreement with statement 'Banks do not act in the best interests of their customers', NI and RoI, November 2013
- Belief and trust in banks largely confined to older consumers
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- Figure 40: Agreement with statement 'Banks provide a valuable service', by age, NI and RoI, November 2013
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- Figure 41: Agreement with statement 'I trust my bank to give me a fair deal', by age, NI and RoI, November 2013
- High level of scepticism about charges and competition in RoI
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- Figure 42: Agreement with statements relating to charges and competition, NI and RoI, November 2013
- Scepticism about 'free banking' and transparency most pointed in RoI
- Focus on charges and transparency perhaps related to financial literacy
Appendix
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- NI Toluna tables
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- Figure 43: How consumers rate their current financial situation, by demographics, NI, November 2013
- Figure 44: Number of current accounts owned, by demographics, NI, November 2013
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- Figure 45: Financial institutions used for main current account, by demographics, NI, November 2013
- Figure 46: Financial institutions used for main current account, by demographics, NI, November 2013 (continued)
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- Figure 47: Financial institutions used for main current account, by demographics, NI, November 2013 (continued)
- Figure 48: Financial institutions used for other current account(s), by demographics, NI, November 2013 (continued)
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- Figure 49: Financial institutions used for other current account(s), by demographics, NI, November 2013 (continued)
- Figure 50: Financial institutions used for other current account(s), by demographics, NI, November 2013 (continued)
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- Figure 51: If consumer’s main current account includes interest-free/fee-free overdraft, by demographics, NI, November 2013
- Figure 52: If consumer’s main current account includes preferential rates on other products (eg loans, savings accounts, credit card), by demographics, NI, November 2013
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- Figure 53: If consumer’s main current account includes annual travel insurance, by demographics, NI, November 2013
- Figure 54: If consumer’s main current account includes mobile phone/ gadget insurance, by demographics, NI, November 2013
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- Figure 55: If consumer’s main current account includes a banking app for a smartphone/tablet, by demographics, NI, November 2013
- Figure 56: If consumer’s main current account includes other discounted insurance (eg home, car, life, health), by demographics, NI, November 2013
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- Figure 57: If consumer’s main current account includes card protection, by demographics, NI, November 2013
- Figure 58: If consumer’s main current account includes identity theft protection, by demographics, NI, November 2013
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- Figure 59: If consumer’s main current account includes motor breakdown/ roadside assistance, by demographics, NI, November 2013
- Figure 60: If consumer’s main current account includes commission-free cash withdrawals abroad, by demographics, NI, November 2013
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- Figure 61: If consumer’s main current account includes retail or leisure discounts and vouchers, by demographics, NI, November 2013
- Figure 62: When consumers last switched their main current account, by demographics, NI, November 2013
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- Figure 63: Agreement with statements relating to current accounts and banking, by demographics, NI, November 2013
- Figure 64: Agreement with statements relating to current accounts and banking, by demographics, NI, November 2013 (continued)
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- Figure 65: Agreement with statements relating to current accounts and banking, by demographics, NI, November 2013 (continued)
- RoI Toluna tables
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- Figure 66: How consumers rate their current financial situation, by demographics, RoI, November 2013
- Figure 67: Number of current accounts owned, by demographics, RoI, November 2013
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- Figure 68: Financial institutions used for main current account, by demographics, RoI, November 2013
- Figure 69: Financial institutions used for main current account, by demographics, RoI, November 2013 (continued)
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- Figure 70: Financial institutions used for main current account, by demographics, RoI, November 2013 (continued)
- Figure 71: Financial institutions used for other current account(s), by demographics, RoI, November 2013 (continued)
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- Figure 72: Financial institutions used for other current account(s), by demographics, RoI, November 2013 (continued)
- Figure 73: Financial institutions used for other current account(s), by demographics, RoI, November 2013 (continued)
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- Figure 74: If consumer’s main current account includes interest-free/fee-free overdraft, by demographics, RoI, November 2013
- Figure 75: If consumer’s main current account includes preferential rates on other products (eg loans, savings accounts, credit card), by demographics, RoI, November 2013
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- Figure 76: If consumer’s main current account includes annual travel insurance, by demographics, RoI, November 2013
- Figure 77: If consumer’s main current account includes mobile phone/ gadget insurance, by demographics, RoI, November 2013
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- Figure 78: If consumer’s main current account includes a banking app for a smartphone/tablet, by demographics, RoI, November 2013
- Figure 79: If consumer’s main current account includes other discounted insurance (eg home, car, life, health), by demographics, RoI, November 2013
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- Figure 80: If consumer’s main current account includes card protection, by demographics, RoI, November 2013
- Figure 81: If consumer’s main current account includes identity theft protection, by demographics, RoI, November 2013
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- Figure 82: If consumer’s main current account includes motor breakdown/ roadside assistance, by demographics, RoI, November 2013
- Figure 83: If consumer’s main current account includes commission-free cash withdrawals abroad, by demographics, RoI, November 2013
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- Figure 84: If consumer’s main current account includes retail or leisure discounts and vouchers, by demographics, RoI, November 2013
- Figure 85: When consumers last switched their main current account, by demographics, RoI, November 2013
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- Figure 86: Agreement with statements relating to current accounts and banking, by demographics, RoI, November 2013
- Figure 87: Agreement with statements relating to current accounts and banking, by demographics, RoI, November 2013 (continued)
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- Figure 88: Agreement with statements relating to current accounts and banking, by demographics, RoI, November 2013 (continued)
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