Table of Contents
Issues in the Market
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- Key themes
- Definitions
- Data sources
- Abbreviations
Insights and Opportunities
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- Consumers not yet ready to 'go it alone online'
- Encouraging consumers to expand their online activity
Market in Brief
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- Economic travails persist across Ireland
- Branch networks retain relevance for consumers
- Most consumers want an 'understanding' bank
- Increasing multiple account ownership among consumers
- Online banking-related fraud losses declining, but threats remain
- Internet penetration and usage continuing to grow
- Continued growth in online banking users and use
- A third use online services, while two thirds use branches
- Simple 'transactions' most commonly engaged in online
- Most common online purchase: travel insurance
Fast Forward Trends
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- Trend 1: Agelessness
- What’s it about?
- What we’ve seen
- What next?
- Trend 2: Make it Mine
- What’s it about?
- What we’ve seen
- What next?
Internal Market Environment
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- Key points
- Branch network remains key to attracting customers
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- Figure 1: Most important factors when choosing a bank for a current account, RoI and NI, 2011
- Branch network increasing in importance during economic crisis...
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- Figure 2: Consumers who consider 'Locality' to be an important factor when choosing a bank for a current account, RoI and NI, 2007-11
- ...while online facilities remain static as an important consideration
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- Figure 3: Consumers who consider 'Telephone/internet banking facilities' to be an important factor when choosing a bank for a current account, RoI and NI, 2007-11
- Majority of consumers want a 'relationship' with their bank
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- Figure 4: Agreement with statement 'It is important that my bank understands my individual needs', by age, RoI and NI, 2011
- Transacting online suits modern lifestyles
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- Figure 5: Agreement with statement 'There are not enough hours in the day to do everything I would like’, RoI and NI, 2007-11
- Consumers' portfolios of products becoming more complex
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- Figure 6: Number of current and savings accounts held, RoI, 2010 and 2011
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- Figure 7: Number of current and savings accounts held, NI, 2010 and 2011
- Fraud losses down 22% in UK, but risks remain
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- Figure 8: Online banking fraud losses, UK (incl. NI), 2004-10
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- Figure 9: Number of phishing websites targeting UK (incl. NI) banks and building societies, 2005-10
- Most consumers confident in ability to protect themselves online
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- Figure 10: Percentage of consumers who claim to be capable of data protection and virus control online, by age, RoI, 2011
- Need for balance between security and convenience
Broader Market Environment
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- Key points
- Both Irish economies still in difficulty
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- Figure 11: GDP growth, actual and forecast, UK, NI and RoI, 2009-12
- NI
- RoI
- Unemployment unlikely to improve in immediate future
- NI
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- Figure 12: Employment and claimant count numbers, actual, estimated and forecast, NI, 2009-12
- RoI
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- Figure 13: Employment, labour force and unemployment, RoI, actual, estimated and forecast, RoI, 2010-12
- Consumers' incomes suffering, spending in decline
- NI
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- Figure 14: Median gross weekly pay, NI, 2005-10
- RoI
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- Figure 15: Median gross weekly earnings, RoI, 2006-11
- Consumer confidence – up in RoI, on the floor in UK (including NI)
- RoI
- UK (including NI)
- Interest rates offer little excitement to savers
Competitive Context
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- Key points
- Decline in cheque usage to increase online transactions
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- Figure 16: Cheque usage, any frequency, NI and RoI, 2009 and 2011
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- Figure 17: Frequency of cheque usage, NI and RoI, 2011
- Death of the cheque on the horizon
- Irish consumers using cash for fewer payments
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- Figure 18: Agreement with the statement ‘I like to pay cash for everything I buy’, NI and RoI, 2007-11
Internet Access and Usage
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- Key points
- Domestic internet connections continuing to grow
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- Figure 19: Consumers who have an internet connection (broadband or dial-up) at home, NI and RoI, 2004-11
- Majority of consumers are internet users
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- Figure 20: Used the internet in the last 12 months, NI and RoI, 2007-11
- Young consumers key target for online banking
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- Figure 21: Consumers who have used the internet in the last 12 months, by age, NI and RoI, 2011
- Half of all consumers are 'very regular' internet users
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- Figure 22: How often consumers access the internet, NI and RoI, 2011
- Internet access key to daily Irish lives
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- Figure 23: Agreement with selected internet-related statements, NI and RoI, 2011
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- Figure 24: Consumers who have shopped online in the last 12 months and who have never shopped online, RoI, 2007-11
- Going online via mobile phone increasingly popular...
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- Figure 25: Means used to access internet, NI and RoI, 2011
- ...creating potential demand for mobile banking services
Strengths and Weaknesses
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- Strengths
- Weaknesses
Companies and Products
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- Figure 26: Profiled banks, 2011
- AIB
- Bank of Ireland
- First Trust Bank
- HSBC
- National Irish Bank
- Northern Bank
- Permanent TSB
- RaboDirect
- Santander
- Ulster Bank
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Use and Volume of Online Banking Services (RoI)
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- Key points
- Three million registered online banking users in RoI
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- Figure 27: Number of consumers registered for online banking services, RoI, Q1 2007-Q2 2011
- Over 100,000 new registrations per quarter over last two years
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- Figure 28: Number of new registrations for online banking services per quarter, RoI, Q2 2009-Q2 2011
- Accounts accessed online more than 40 million times in Q2 2011
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- Figure 29: Number of times accounts accessed online, Q2 2009-Q2 2011
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- Figure 30: Average number of times accounts accessed online per registered user per quarter, RoI, Q1 2007-Q2 2011
- 11.5 million payments through online banking services during Q2 2011
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- Figure 31: Number of payments/transfers through online banking services, RoI, Q1 2007-Q2 2011
- Figure 32: Number of payments/transfers through online banking services per registered user, Q2 2007-Q2 2011
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- Figure 33: Payments made through online banking services, by payment type, RoI, Q2 2011
The Consumer – Frequency of Channel Usage
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- Key points
- More than a third use online banking services
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- Figure 34: Consumers who use various banking channels with any frequency, NI and RoI, 2011
- A fifth bank online once a week or more often
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- Figure 35: Consumers who use various banking channels once a week or more often, NI and RoI, 2011
- Online banking users tend to be 'regular' users
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- Figure 36: Frequency of online banking use, RoI and NI, 2011
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- Figure 37: Frequency of branch banking use, RoI and NI, 2011
- ABC1s and 25-34s use online banking most frequently
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- Figure 38: Consumers who use online banking once a week or more often, by age and socio-economic background, RoI and NI, 2011
- C2DEs and 35-54s use branch banking most frequently
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- Figure 39: Consumers who use branch banking once a week or more often, by age and socio-economic background, RoI and NI, 2011
The Consumer – Usage of Online Banking
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- Key points
- Simple activities remain the most popular
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- Figure 40: Services carried out with online banking facility, RoI and NI, 2011
- Significant growth in numbers engaging in 'core' activities online
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- Figure 41: Participation in core online banking activities, NI and RoI, 2006 and 2011
- Clear socio-economic divide in online banking usage
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- Figure 42: Consumers who engage in selected online banking activities, by socio-economic background, RoI, 2011
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- Figure 43: Consumers who engage in selected online banking activities, by socio-economic background, NI, 2011
- Working status strongly impacts usage
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- Figure 44: Consumers who engage in selected online banking activities, by working status, RoI, 2011
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- Figure 45: Consumers who engage in selected online banking activities, by working status, NI, 2011
- Consumers aged 25-34 most inclined to bank online, over-65s least
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- Figure 46: Consumers who engage in selected online banking activities, highest and lowest, by age, RoI, 2011
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- Figure 47: Consumers who engage in selected online banking activities, highest and lowest, by age, NI, 2011
The Consumer – Financial Products Purchased Online
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- Key points
- Holiday and travel insurance most likely purchased or arranged online
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- Figure 48: Types of financial products arranged/bought online, RoI and NI, 2011
- Commoditisation makes credit cards online-friendly
- Mortgages and loans too complex for online purchasing
- Older profile to online travel insurance purchasers
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- Figure 49: Consumers who have arranged/purchased holiday and travel insurance online, by age, NI and RoI, 2011
- Few have arranged or purchased car insurance online
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- Figure 50: Consumers who have purchased car insurance (main car) online, by gender and age, NI and RoI, 2011
Appendix
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- NI and RoI internet TGI
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- Figure 51: Consumers who have used the internet in the last 12 months, by demographics, NI and RoI, 2011
- Figure 52: Consumers who have a mobile broadband subscription, by demographics, NI and RoI, 2011
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- Figure 53: How often consumers access the internet, NI and RoI, 2011
- Figure 54: How much time consumers spend on the internet per week, NI and RoI, 2011
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- Figure 55: Where consumers access the internet, NI and RoI, 2011
- Figure 56: How consumers access the internet, NI and RoI, 2011
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- Figure 57: Type of internet connection (at home), NI and RoI, 2011
- NI online banking TGI
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- Figure 58: Frequency of online banking, by demographics, NI, 2011
- Figure 59: Frequency of telephone banking, by demographics, NI, 2011
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- Figure 60: Frequency of branch banking, by demographics, NI, 2011
- Figure 61: Frequency of ATM banking (for services other than cash withdrawal), by demographics, NI, 2011
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- Figure 62: Frequency of postal banking, by demographics, NI, 2011
- What online banking is used for
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- Figure 63: Services carried out with online banking, by demographics, NI, 2011
- Types of financial products arranged/bought online
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- Figure 64: Types of financial products arranged/bought online, by demographics, NI, 2011
- NI internet statements
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- Figure 65: Agreement with statements relating to the internet and mobile phones, by demographics, NI, 2011
- RoI online banking TGI
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- Figure 66: Frequency of online banking, by demographics, RoI, 2011
- Figure 67: Frequency of telephone banking, by demographics, RoI, 2011
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- Figure 68: Frequency of branch banking, by demographics, RoI, 2011
- Figure 69: Frequency of ATM banking (for services other than cash withdrawal), by demographics, RoI, 2011
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- Figure 70: Frequency of postal banking, by demographics, RoI, 2011
- What online banking is used for
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- Figure 71: Services carried out with online banking, by demographics, RoI, 2011
- Figure 72: Services carried out with online banking (continued), by demographics, RoI, 2011
- Types of financial products arranged/bought online
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- Figure 73: Types of financial products arranged/bought online, by demographics, RoI, 2011
- RoI internet statements
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- Figure 74: Agreement with statements relating to the internet and mobile phones, by demographics, RoI, 2011
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