Table of Contents
Introduction
-
- Note on consumer research
- Abbreviations
Executive Summary
-
- Product ownership and cross-selling
- Savers looking beyond their main bank for competitive deals
-
- Figure 1: Products held and cross-sales, June 2013
- Current account market share
- Top six providers have a 77% share of the current account market
-
- Figure 2: Main current account provider, June 2013
- Advertising and brand research
- Banks anticipate launch of switching service with an increase in adspend
- Nationwide continues to stand out as the most trusted brand
-
- Figure 3: Attitudes towards and usage of brands in the retail banking sector, June 2013
- The consumer
- Consumers want a multichannel service
-
- Figure 4: Use of various retail banking channels*, June 2013
- Debit cards and online banking are most valued banking services
-
- Figure 5: Perceived value of various retail banking services, June 2013
- Almost 60% believe that ‘there is no such thing as free banking’
-
- Figure 6: Agreement with various attitudinal statements about retail banking, June 2013
- One in seven are likely switchers following the launch of the switching service
-
- Figure 7: Likelihood of switching current account provider after launch of switching service, June 2013
- Nationwide is the preferred choice for potential switchers
-
- Figure 8: Consideration of switching to various retail banking brands, June 2013
- Challenger brands still need to prove their credentials
- What we think
Issues in the Market
-
- Is anyone interested in the new Current Account Switch Service?
- Which brands stand to gain most from the new switching service?
- Who is most likely to consider using the new switching service?
- Is there ‘no such thing as free banking’?
- Can banks rely on existing customers for product cross-sales?
Trend Application
-
- Branch banking at transport hubs
- Catering for the modern time-pressed consumer
- Does face-to-face service have a future?
Retail Banking Providers – Current Account Share
-
- Key points
- Little change in market shares for top providers
-
- Figure 9: Main current account provider, June 2013
- Smaller brands are yet to make a mark
- Lloyds Banking Group maintains dominance
-
- Figure 10: Main current account provider, by banking groups, June 2013
Retail Banking Company Profiles
-
- Barclays
- Company overview
- Financial overview
-
- Figure 11: Key financial data for Barclays plc, 2010-12
- Figure 12: Key financial data for Barclays plc, 2012 and 2013
- Key data
-
- Figure 13: Key data for Barclays Plc (UK Retail and Business Banking division), 2010-12
- Recent activity
- HSBC
- Company overview
- Financial overview
-
- Figure 14: Key financial data for HSBC Bank Plc, 2010-12
- Figure 15: Key financial data for HSBC Bank Plc, 2012 and 2013
- Key data
-
- Figure 16: Key retail banking data for HSBC (UK Retail Banking Division), 2010-12
- Recent activity
- Lloyds Banking Group
- Company overview
- Financial overview
-
- Figure 17: Key financial data for Lloyds Banking Group, 2010-12
- Figure 18: Key financial data for Lloyds Banking Group, 2012 and 2013
- Key data
-
- Figure 19: Key retail banking data for Lloyds Banking Group, 2010-12
- Recent activity
- Nationwide
- Company overview
- Financial overview
-
- Figure 20: Key financial data for Nationwide, 2012 and 2013
- Figure 21: Key retail banking data for Nationwide, 2012 and 2013
- Recent activity
- RBS Group
- Company overview
- Financial overview
-
- Figure 22: Key financial data for RBS Group, 2010-12
- Figure 23: Key financial data for RBS Group, 2012 and 2013
- Key data
-
- Figure 24: Key retail banking data for RBS Group (UK Retail Banking Division), 2010-12
- Recent activity
- Santander
- Company overview
- Financial overview
-
- Figure 25: Key financial information for Santander UK, 2010-12
- Figure 26: Key financial information for Santander UK, 2012 and 2013
- Key data
-
- Figure 27: Key retail banking data for Santander UK, 2010-12
- Recent activity
- The Co-operative Bank
- Company overview
- Financial overview
-
- Figure 28: Key financial data for Co-operative Bank, 2011 and 2012
- Figure 29: Key financial data for Co-operative Bank, 2012 and 2013
- Key data
-
- Figure 30: Key retail banking data for Co-operative Bank, 2011 and 2012
- Recent activity
- Virgin Money
- Company overview
- Financial overview
-
- Figure 31: Key financial data for Virgin Money, 2011 and 2012
- Key data
-
- Figure 32: Key retail banking data for Virgin Money, 2011 and 2012
- Recent activity
Brand Communication and Promotion
-
- Key points
- Retail banks increase spend on brand building and current accounts
-
- Figure 33: Advertising expenditure by retail banking providers, 2010-12
-
- Figure 34: Advertising expenditure by selected retail banks, by selected product/service categories, 2011-13
- Lloyds Banking Group brands lead the way in adspend
-
- Figure 35: Retail banking advertising expenditure, by advertiser, 2011-13
- A note on adspend
Brand Research
-
- Brand map
-
- Figure 36: Attitudes towards and usage of brands in the retail banking sector, June 2013
- Correspondence analysis
- Brand attitudes
-
- Figure 37: Attitudes, by retail bank brands, June 2013
- Brand personality
-
- Figure 38: Retail banking brand personality – macro image, June 2013
-
- Figure 39: Retail banking brand personality – micro image, June 2013
- Brand experience
-
- Figure 40: Retail banking brand usage, June 2013
-
- Figure 41: Satisfaction with various retail banking brands, June 2013
-
- Figure 42: Consideration of retail banking brands, June 2013
-
- Figure 43: Consumer perceptions of current retail banking brand performance, June 2013
- Brand index
-
- Figure 44: Retail banking brand index, June 2013
- Target group analysis
-
- Figure 45: Target groups, June 2013
-
- Figure 46: Retail banking brand usage, by target groups, June 2013
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Product Ownership and Cross-Selling
-
- Key points
- Scope to increase cross-sales among current account holders
-
- Figure 47: Products held and cross-sales, June 2013
- More customers are holding savings away from their main bank
- Informed and rate-sensitive consumers will shop around for the best products
- 26% of current account holders have no other products with main bank
-
- Figure 48: Number of products held with main current account provider, June 2013
- Savings accounts tend to be the first cross-sale opportunity
-
- Figure 49: Products held and cross-sales, by number of products held with main current account provider, June 2013
- Nationwide leads the way in product cross-sales
-
- Figure 50: Main current account provider, by number of products held with main current account provider, June 2013
Use of Retail Banking Channels
-
- Key points
- Most people still use bank branches from time to time
-
- Figure 51: Frequency of use of various retail banking channels, June 2013
- Advice services are widely used but on an infrequent basis
- Branch closures present a tricky PR issue for banks
- Online banking generates regular customer contact
- Mobile banking usage continues to increase
Satisfaction with Retail Banking Providers
-
- Key points
- Only a small minority are unhappy with their existing bank
-
- Figure 52: Satisfaction with existing banking provider, June 2013
- Nationwide customers are more likely to be happy with their bank
-
- Figure 53: Satisfaction with existing banking provider, by main current account provider, June 2013
- Recent switchers are the most happy with their current provider
-
- Figure 54: Satisfaction with existing banking provider, by past switching behaviour, June 2013
Satisfaction with Retail Banking Services
-
- Key points
- Online banking services drive positive perceptions of banking providers
-
- Figure 55: Satisfaction with various retail banking services, June 2013
- Mobile banking also generates positive endorsement
- Branch services are perceived positively…
- …but telephone banking has some room for improvement
- Banks perform poorly in rewarding customer loyalty
Perceived Value of Retail Banking Services
-
- Key points
- The drive for transparency could alter the current retail banking model
- Debit cards, online banking and ATM access are the most valuable services
-
- Figure 56: Perceived value of various retail banking services, June 2013
- Branch-based services are valued but with less enthusiasm
- Branch consolidation is inevitable, so what is the future for branches?
- Extended opening hours divide the generations
-
- Figure 57: Perceived value of extended branch opening hours, by age, June 2013
- A challenge to develop services that appeal to different groups
Attitudes Towards Retail Banking
-
- Key points
- Consumers still have concerns about the transparency of bank charges
-
- Figure 58: Attitudes towards retail banking, June 2013
- Three fifths agree that there is no such thing as free banking
- Bank customers expect to shop around for the best deals
- Consumers are split over attitudes towards branch banking
-
- Figure 59: Agreement with attitudes towards retail banking channels, by age, June 2013
-
- Figure 60: Agreement with attitudes towards retail banking channels, by household income, June 2013
- NatWest customers are more likely to believe banks provide a valued service
-
- Figure 61: Attitudes towards retail banking, by main current account provider, June 2013
Expected Use of Current Account Switch Service
-
- Key points
- New account switching service should boost competition
- One in seven current account customers are likely switchers
-
- Figure 62: Likelihood of switching current account provider after launch of switching service, June 2013
- Advertising and incentives could sway the undecided
- Likely switchers are more likely to be aged 25-34
-
- Figure 63: Likelihood of switching current account provider after launch of switching service, by gender and age, June 2013
- New technology is valued by likely switchers
-
- Figure 64: Perceived value of various retail banking services, by likelihood of switching current account provider after launch of switching service, June 2013
- Non-switchers trust their bank to give them a fair deal
-
- Figure 65: Attitudes towards retail banking, by likelihood of switching current account provider after launch of switching service, June 2013
Current Account Switching – Consideration of Retail Banking Brands
-
- Key points
- Nationwide has the widest appeal among potential switchers
-
- Figure 66: Consideration of switching to various retail banking brands, June 2013
- Main banks are preferred to new and potential entrants
- Co-operative Bank and First Direct lag behind the main brands
- Virgin Money and Post Office lead the way among new and potential entrants
Appendix – Retail Banking Providers – Current Account Share
-
-
- Figure 67: Main current account provider, by demographics, June 2013
- Figure 68: Next most popular main current account provider, by demographics, June 2013
-
- Figure 69: Other main current account provider, by demographics, June 2013
-
Appendix – Brand Research
-
-
- Figure 70: Brand usage, June 2013
- Figure 71: Brand usage, June 2013 (continued)
-
- Figure 72: Brand commitment, June 2013
- Figure 73: Brand commitment, June 2013 (continued)
- Figure 74: Brand momentum, June 2013
-
- Figure 75: Brand momentum, June 2013 (continued)
- Figure 76: Brand diversity, June 2013
- Figure 77: Brand diversity, June 2013 (continued)
-
- Figure 78: Brand satisfaction, June 2013
- Figure 79: Brand satisfaction, June 2013 (continued)
- Figure 80: Brand attitude, June 2013
-
- Figure 81: Brand attitude, June 2013 (continued)
- Figure 82: Brand image – macro image, June 2013
- Figure 83: Brand image – macro image, June 2013 (continued)
-
- Figure 84: Brand image – micro image, June 2013
- Figure 85: Brand image – micro image, June 2013 (continued)
- Figure 86: Profile of target groups, by demographics, June 2013
-
- Figure 87: Psychographic segmentation, by target groups, June 2013
- Figure 88: Brand usage, by target groups, June 2013
- Brand index
-
- Figure 89: Brand index, June 2013
-
Appendix – Product Ownership and Cross-Selling
-
-
- Figure 90: Products held and cross-sales for savings account, by demographics, June 2013
- Figure 91: Products held and cross-sales for credit card, by demographics, June 2013
-
- Figure 92: Products held and cross-sales for cash ISA, by demographics, June 2013
- Figure 93: Products held and cross-sales for home insurance, by demographics, June 2013
-
- Figure 94: Products held and cross-sales for mortgage, by demographics, June 2013
- Figure 95: Products held and cross-sales for personal loan, by demographics, June 2013
-
- Figure 96: Products held and cross-sales for any stock market-based investment product, by demographics, June 2013
- Figure 97: Products held and cross-sales for life insurance, by demographics, June 2013
-
- Figure 98: Products held and cross-sales for car insurance, by demographics, June 2013
- Figure 99: Products held and cross-sales for income protection/critical illness cover, by demographics, June 2013
-
- Figure 100: Products held and cross-sales for business loan, by demographics, June 2013
- Figure 101: Repertoire for products held with main current account provider, by demographics, June 2013
-
Appendix – Use of Retail Banking Channels
-
-
- Figure 102: Frequency of use of various retail banking channels – In-branch counter services, by demographics, June 2013
- Figure 103: Frequency of use of various retail banking channels – In-branch counter services continued, by demographics, June 2013
-
- Figure 104: Frequency of use of various retail banking channels – In-branch advice services, by demographics, June 2013
- Figure 105: Frequency of use of various retail banking channels – In-branch advice services continued, by demographics, June 2013
-
- Figure 106: Frequency of use of various retail banking channels – Online banking, by demographics, June 2013
- Figure 107: Frequency of use of various retail banking channels – Online banking continued, by demographics, June 2013
-
- Figure 108: Frequency of use of various retail banking channels – Telephone banking, by demographics, June 2013
- Figure 109: Frequency of use of various retail banking channels – Telephone banking continued, by demographics, June 2013
-
- Figure 110: Frequency of use of various retail banking channels – Mobile banking, by demographics, June 2013
- Figure 111: Frequency of use of various retail banking channels – Mobile banking continued, by demographics, June 2013
-
Appendix – Satisfaction with Retail Banking Providers
-
-
- Figure 112: Satisfaction with existing banking provider, by demographics, June 2013
-
Appendix – Satisfaction with Retail Banking Services
-
-
- Figure 113: Satisfaction with various retail banking services (rebased to exclude don’t know/not applicable to me), June 2013
- Figure 114: Satisfaction with various branch-related retail banking services, June 2013
-
- Figure 115: Satisfaction with remote retail banking channels, by main current account provider, June 2013
- Figure 116: Satisfaction with other retail banking services, by main current account provider, June 2013
-
Appendix – Perceived Value of Retail Banking Services
-
-
- Figure 117: Perceived value of various retail banking services, by main current account provider, June 2013
- Figure 118: Perceived value of branch-related retail banking services, by main current account provider, June 2013
- Figure 119: Perceived value of account management-related retail banking services, by main current account provider, June 2013
- Figure 120: Perceived value of various retail banking services – Use of a debit card, by demographics, June 2013
-
- Figure 121: Perceived value of various retail banking services – Online banking service, by demographics, June 2013
- Figure 122: Perceived value of various retail banking services – Access to ATM at other banks, by demographics, June 2013
-
- Figure 123: Perceived value of various retail banking services – Access to ATM at own bank, by demographics, June 2013
- Figure 124: Perceived value of various retail banking services – Branch cashier services, by demographics, June 2013
-
- Figure 125: Perceived value of various retail banking services – Access to advisers in branch, by demographics, June 2013
- Figure 126: Perceived value of various retail banking services – Overdraft facility, by demographics, June 2013
-
- Figure 127: Perceived value of various retail banking services – Extended branch opening hours, by demographics, June 2013
- Figure 128: Perceived value of various retail banking services – Use of a chequebook, by demographics, June 2013
-
- Figure 129: Perceived value of various retail banking services – Mobile banking service, by demographics, June 2013
- Figure 130: Perceived value of various retail banking services – Telephone banking services, by demographics, June 2013
-
- Figure 131: Perceived value of various retail banking services – Contactless cards, by demographics, June 2013
-
Appendix – Attitudes Towards Retail Banking
-
-
- Figure 132: Agreement with the statement ‘Banks should be more open about their charges’, by demographics, June 2013
- Figure 133: Agreement with the statement ‘People should shop around to find the best banking products’, by demographics, June 2013
-
- Figure 134: Agreement with the statement ‘Banks provide a valuable service’, by demographics, June 2013
- Figure 135: Agreement with the statement ‘Banks do not reward customer loyalty’, by demographics, June 2013
-
- Figure 136: Agreement with the statement ‘There is no such thing as free banking’, by demographics, June 2013
- Figure 137: Agreement with the statement ‘All banks are pretty much the same’, by demographics, June 2013
-
- Figure 138: Agreement with the statement ‘Banks do not act in the best interests of their customers’, by demographics, June 2013
- Figure 139: Agreement with the statement ‘I trust my bank to give me a fair deal’, by demographics, June 2013
-
- Figure 140: Agreement with the statement ‘Banks should invest more in keeping up with technology’, by demographics, June 2013
- Figure 141: Agreement with the statement ‘There is not enough competition between banks’, by demographics, June 2013
-
- Figure 142: Agreement with the statement ‘There is little need to visit a bank’s high street branch anymore’, by demographics, June 2013
- Figure 143: Agreement with the statement ‘High street branches are more important than online or mobile services’, by demographics, June 2013
-
Appendix – Expected Use of Current Account Switch Service
-
-
- Figure 144: Likelihood of switching current account provider after launch of switching service, by demographics, June 2013
- Figure 145: Likelihood of switching current account provider after launch of switching service, by demographics, June 2013 (continued)
-
Appendix – Current Account Switching – Consideration of Retail Banking Brands
-
-
- Figure 146: Consideration of switching to various retail banking brands – Nationwide, by demographics, June 2013
- Figure 147: Consideration of switching to various retail banking brands – NatWest, by demographics, June 2013
-
- Figure 148: Consideration of switching to various retail banking brands – Santander, by demographics, June 2013
- Figure 149: Consideration of switching to various retail banking brands – Barclays, by demographics, June 2013
-
- Figure 150: Consideration of switching to various retail banking brands – HSBC, by demographics, June 2013
- Figure 151: Consideration of switching to various retail banking brands – Halifax, by demographics, June 2013
-
- Figure 152: Consideration of switching to various retail banking brands – Lloyds TSB, by demographics, June 2013
- Figure 153: Consideration of switching to various retail banking brands – Virgin money, by demographics, June 2013
-
- Figure 154: Consideration of switching to various retail banking brands – Post Office, by demographics, June 2013
- Figure 155: Consideration of switching to various retail banking brands – Co-operative Bank, by demographics, June 2013
-
- Figure 156: Consideration of switching to various retail banking brands – First Direct, by demographics, June 2013
- Figure 157: Consideration of switching to various retail banking brands – Tesco Bank, by demographics, June 2013
-
- Figure 158: Consideration of switching to various retail banking brands – M&S Bank, by demographics, June 2013
- Figure 159: Consideration of switching to various retail banking brands – Metro Bank, by demographics, June 2013
-
Back to top