Table of Contents
Issues in the Market
-
- Key themes in the report
- Definition
- Abbreviations
Insights and Opportunities
-
- The name game
- Rewarding responsibility
- Capping the current account
Market in Brief
-
- Security at the forefront of consumers’ minds
- Interest rate slump deterring potential savers
- Economic downturn creating consumer uncertainty
- Savings considered a good ‘rainy day’ option during the recession
Fast Forward Trends
-
- Trend 1: You Are In Control
- What's it about?
- What we've seen
- Specifics
- What next?
- Trend 2: Local Knowledge
- What's it about?
- What we've seen
- Specifics
- What next?
Internal Market Environment
-
- Key points
- Governments up the savings guarantee limits
- Protecting the consumer’s nest egg
- Security and control key features for the coming years
- Interest rates at all-time low
-
- Figure 1: Average annual UK and Eurozone interest rates, January 2003-Feburary 2010
- Figure 2: Retail interest rates for new business in deposits from households, RoI, January 2007-December 2009
-
- Figure 3: Average quoted deposit interest rates at banks and building societies, UK, January 2007-February 2009
- Consumers left with little incentive to save
- A stronger focus on debt repayment
-
- Figure 4: Value of outstanding mortgages, RoI, January 2008-December 2009
- Banks competing for deposits
- Greater savings for ISA holders
Broader Market Environment
-
- Key points
- Pressures on disposable income making saving difficult
-
- Figure 5: Economic outlook, NI and RoI, 2008-10
- Unemployment shows no signs of abating
- Consumers tighten the purse strings
- Less cash means less savings
- Consumer confidence showing ‘moderate’ improvement
-
- Figure 6: Consumer Sentiment/Confidence Index, January 2005-December 2009
- Encouraging a savings culture
- Deflation reducing savings returns for consumers
-
- Figure 7: Monthly changes in annual inflation rates* for CPI in RoI and CPI and RPI in UK, January 2003-December 2009
- Population trends set to place greater emphasis on savings
-
- Figure 8: Percentage change in population projections, by age group, RoI, 2006-41
- Figure 9: Percentage change in population projections, by age group, NI, 2008-41
- Savings essential for an aging population
Competitive Context
-
- Key points
- Poor pension fund performance to drive savings market
-
- Figure 10: Value of pension fund assets, RoI, 2003-08
- Figure 11: Value of pension fund assets, NI, 2003-08
- Equity markets recovering from 2008 crash
-
- Figure 12: ISEQ monthly index movements, January 2006-December 2009
- Figure 13: FTSE 100 and FTSE All-share monthly index movements, January 2006-December 2009
- Consumers left shaken by stock market tumble
-
- Figure 14: Percentage of respondents who agree with statement ‘owning stocks and shares is too risky an investment for me’, NI and RoI, 2004-09
-
- Figure 15: Percentage of respondents with investments, stocks and shares, unit trusts and investment trusts, NI and RoI, 2004-09
- Buy-to-let property – the landlords lose out
-
- Figure 16: Outstanding buy-to-let residential mortgage lending, RoI, 2004-09
- Pre-recession showed growth in NI renting sector
-
- Figure 17: Total number of private rented residential units, 000s, NI, 2003-08
-
- Figure 18: Number of properties let in the Belfast Metropolitan area, Jan 2008-June 2009
- Figure 19: Average rent per month in Belfast Metropolitan area, Jan 2008-June 2009
- Drop in UK BTL lending reflective of wider market trends
-
- Figure 20: Value of new buy-to-let lending, UK, 2005-09
- Some increase in lending activity seen at end of 2009
-
- Figure 21: Number of new buy-to-let mortgages advanced, UK, 2005-09
Strengths and Weaknesses
-
- Strengths
- Weaknesses
Market Value and Forecast
-
- Key points
- Spare cash not making its way into savings
-
- Figure 22: Value of savings market, IoI, RoI and NI, 2004-14
- The recession eating away at ‘would-be’ savings
- Consumers forced to take responsibility
- Saving intentions and ability do not match up
Market Segmentation
-
- Key points
- RoI consumers thinking long-term
-
- Figure 23: Segmentation of the savings market, RoI, 2005-10
- NI consumers keeping their cash handy
-
- Figure 24: Segmentation of the savings market, NI, 2005-10
Who’s Innovating?
-
- Key points
- Competitive offers to draw customers in
- An emphasis on security
- Moving forward
Companies and Products
-
- Key points
- Banks and building societies
- Allied Irish Bank (AIB)
- Bank of Ireland (BoI) Group
- Halifax (HBOS plc)
- HSBC Bank plc
- Irish Life & Permanent Group plc
- Nationwide
- Nationwide UK (Ireland)
- National Irish Bank (NIB) and Northern Bank
- Santander UK plc
- Standard Life plc
- Ulster Bank Group
- Other
- The Co-operative Group
- Post Office
- Rabodirect.ie
Consumer Ownership
-
- Key points
- Multiple account ownership higher in RoI
-
- Figure 25: Number of respondents with one, two or three or more accounts, RoI, 2007-09
-
- Figure 26: Number of respondents with one, two or three or more accounts, NI, 2007-09
- Ready access a key feature for savers
-
- Figure 27: Type of account owned, NI, 2007-09
-
- Figure 28: Type of account owned, RoI, 2007-09
- Long-term savings on the horizon in RoI
-
- Figure 29: Frequency of payment into savings account, NI and RoI, 2009
- ISAs continue to gain ground
-
- Figure 30: ISA ownership, NI, 2004-09
-
- Figure 31: Where ISA is held, NI, 2004-09
- Interest rates most important factor for consumers
-
- Figure 32: Most important factors when choosing a savings account provider, NI and RoI, 2007-09
Consumer Typologies
-
- Key points
- NI target groups
-
- Figure 33: Consumer typologies, NI, 2009
- Shrewd Savers
- Scatter-brain Students
- Money Jugglers
- Security Seekers
- RoI target groups
-
- Figure 34: Consumer typologies, RoI, 2009
- Risk Avoiders
- Early Planners
- Purpose Savers
- Non-savers
Appendix
-
-
- Figure 35: Target groups, by agreement with attitudes towards finance, NI, 2009
- Figure 36: Target groups, by demographic breakdown, NI, 2009
-
- Figure 37: Target groups, by agreement with attitudes towards finance, RoI, 2009
- Figure 38: Target groups, by demographic breakdown, RoI, 2009
-
Back to top