Table of Contents
Overview
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- What you need to know
- Issues covered in this Report
- Definitions
Executive Summary
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- The market
- Increase of 125,000 current accounts between 2017 and 2018
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- Figure 1: Total number of active current accounts, actual, estimated, forecast and projected, IoI, RoI and NI, 2013-18
- Coming five years to see growth of between 5% and 10%
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- Figure 2: Index of total number of active current accounts, actual, estimated, forecast and projected, RoI and NI, 2013-23
- Market factors
- RoI economy growing strongly, NI economy stalling somewhat
- Switching activity low in RoI, higher in UK (incl. NI)
- Current accounts generating high level of complaints in NI and RoI
- Companies and brands
- The consumer
- Current account ownership close to 100% among consumers
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- Figure 3: Number of current accounts owned by consumers (including those owned jointly with someone else), NI and RoI, September 2018
- High level of competition in NI current account market
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- Figure 4: The bank, building society or credit union where consumers have their main current account, NI, September 2018
- RoI current account market dominated by two major providers
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- Figure 5: The bank, building society or credit union where consumers have their main current account, RoI, September 2018
- Half of NI and two thirds of RoI consumers have never switched provider
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- Figure 6: Whether consumers have ever switched where their main current account is held, NI and RoI, September 2018
- Online and mobile the preferred banking channels in Ireland
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- Figure 7: Preferred methods of conducting selected banking activities, NI and RoI, September 2018
- What it means
The Market – What You Need to Know
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- 2% increase in number of current accounts in Ireland from 2017-18
- Both Irish economies growing, with RoI growth especially robust
- Lack of switching among RoI consumers, more so in UK (incl. NI)
- Current accounts proving source of complaints among consumers
Market Size and Forecast
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- More than 7.1 million current accounts in Ireland in 2018
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- Figure 8: Total number of active current accounts, actual, estimated, forecast and projected, IoI, RoI and NI, 2013-23
- RoI market static over last five years, while NI market up 4%
- RoI market to grow by 10%, NI by 5% in coming five years
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- Figure 9: Index of total number of active current accounts, actual, estimated, forecast and projected, RoI and NI, 2013-23
Market Drivers
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- Contrasting outlooks for both Irish economies
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- Figure 10: Economic growth, forecasts, RoI and NI, 2017-22
- Slowdown in job creation expected in NI, but set to continue in RoI
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- Figure 11: Labour market performance, job growth forecasts, RoI and NI, 2017-22
- Charges likely discouraging multiple account ownership in RoI
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- Figure 12: Annual maintenance fees on current accounts, RoI, 2018
- Switching activity low among RoI consumers
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- Figure 13: Number of current account switches, RoI, H2 2013-H1 2017
- High level of switching among UK (including NI) consumers
- NI-based providers faring poorly in switching stakes
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- Figure 14: Switching net gains/losses, UK (including NI) financial institutions, Q4 2017 and Q1 2018
- Current accounts most complained about banking product in RoI
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- Figure 15: Complaints about current accounts, H2 2013-H1 2017
- Figure 16: Complaints about current accounts, by complaint type, H1 2017
- Current account complaints 25% of all complaints received by FOS
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- Figure 17: Complaints, by complaint type, %, UK (including NI), 2016/17
Companies and Brands – What You Need to Know
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- Irish banks’ digital strategy lagging behind in the current accounts market
- Digital-first strategies will mean fewer bank branches
- Payment Service Directive 2 Legislation came into force in January 2018
- Challenger brand Monzo reached half a million current account holders in the UK
- Banks in the UK and Ireland likely to face much more competition from non-financial businesses in future
Companies and Brands
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- Santander (NI only)
- Key facts
- Product portfolio
- Recent developments
- Ulster Bank
- Key facts
- Product portfolio
- Recent developments
- Halifax (NI Only)
- Key facts
- Product portfolio
- Recent developments
- Danske Bank (NI only)
- Key facts
- Product portfolio
- Recent developments
- Bank of Ireland
- Key facts
- Product portfolio
- Recent developments
- Allied Irish Bank Group
- Key facts
- Product portfolio
- Recent developments
- Permanent TSB (RoI only)
- Key facts
- Product portfolio
- Recent developments
- EBS (RoI only)
- Key facts
- Product portfolio
- Nationwide (NI only)
- Key facts
- Product portfolio
- Recent developments
- An Post (RoI only)
- Key facts
- Product portfolio
- HSBC (NI only)
- Key facts
- Product portfolio
- Recent developments
- KBC Ireland (RoI only)
- Key facts
- Product portfolio
- Recent developments
Who’s Innovating?
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- Convergence between financial services companies and FinTech start-ups
- WhatsApp bank account on trial in Brazil
- Amazon slowly encroaching into financial services
- Venmo launches a debit card in US
The Consumer – What You Need to Know
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- Near-universal ownership of current accounts in NI and RoI
- Strong competition within NI main and non-main account markets
- Two banks dominate the current account market in RoI
- Two thirds of RoI and half of NI consumers have never switched provider
- Preferred channels for banking activities now online and mobile
Ownership of Current Accounts
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- Almost every Irish consumer has at least one current account
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- Figure 18: Number of current accounts owned by consumers (including those owned jointly with someone else), NI and RoI, September 2018
- Multiple account ownership highest among consumers aged 35-44
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- Figure 19: Consumers who have two personal current accounts (including those owned jointly with someone else), by age, NI and RoI, September 2018
- Married consumers more likely to have additional current account
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- Figure 20: Consumers who have two personal current accounts (including those owned jointly with someone else), by marital status, NI and RoI, September 2018
- Multiple account ownership increases with income and social class
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- Figure 21: Consumers who have two personal current accounts (including those owned jointly with someone else), by social class, NI and RoI, September 2018
- Figure 22: Consumers who have two personal current accounts (including those owned jointly with someone else), by household income, NI and RoI, September 2018
Where Current Accounts Are Held
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- Six providers with 10% or more market share in NI
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- Figure 23: The bank, building society or credit union where consumers have their main current account, NI, September 2018
- Healthy competition in NI's non-main current account market
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- Figure 24: The bank, building society or credit union where consumers have their other (non-main) current account, NI, September 2018
- Two banks command two thirds of the current account market in RoI
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- Figure 25: The bank, building society or credit union where consumers have their main current account, RoI, September 2018
- No dominant provider in non-main account market in RoI
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- Figure 26: The bank, building society or credit union where consumers have their other (non-main) current account, RoI, September 2018
Switching Activity
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- Switching relatively uncommon among Irish consumers
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- Figure 27: Whether consumers have ever switched where their main current account is held, NI and RoI, September 2018
- More than half of all consumers who have switched did so five or more years ago
- Younger consumers and women most likely to have never switched provider
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- Figure 28: Consumers who say they have never switched their main current account provider, by gender and age, NI and RoI, September 2018
Methods Used for Selected Activities
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- Digital now by far the preferred method for banking activities
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- Figure 29: Preferred methods of conducting selected banking activities, NI and RoI, September 2018
- Branches popular when face-to-face interaction helpful or necessary
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- Figure 30: Consumers who prefer to use in-branch counter services when conducting various banking activities, NI and RoI, September 2018
- Online banking offers convenience and functionality
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- Figure 31: Consumers who prefer to use online banking (using a desktop/laptop) when conducting various banking activities, NI and RoI, September 2018
- Mobile banking the preferred channel for 'on-the-go' activities
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- Figure 32: Consumers who prefer to use mobile banking (ie app/website) when conducting various banking activities, NI and RoI, September 2018
- Telephone banking now a distinctly niche channel among consumers
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- Figure 33: Consumers who prefer to use telephone banking when conducting various banking activities, NI and RoI, September 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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