Table of Contents
Executive Summary
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- The market
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- Figure 1: Total deposits from private households, NI and RoI, 2010-14
- Forecast
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- Figure 2: Index of total deposits from private households, RoI and NI, 2010-20
- Market factors
- Both Irish economies back to growth, with RoI’s prospects particularly positive
- Consumer confidence remains high and on upward trajectory
- 2015 savings ratio down on recession years – but still higher than pre-recession years
- Confidence among consumers in their ability to at least maintain savings behaviour…
- …but household incomes remain squeezed for many, inhibiting saving
- The consumer
- Dominance of standard savings accounts indicates aversion to risk
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- Figure 3: Ownership of savings and investment products, NI and RoI, October 2014
- Only a minority of consumers have no savings at all
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- Figure 4: Amounts that consumers currently have in their savings and investments (excluding pensions and second homes), NI and RoI, October 2014
- Emergencies, unexpected events and security are the primary motivations for saving
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- Figure 5: Intended purpose of savings and investments, NI and RoI, October 2014
- What we think
Issues and Insights
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- What level of savings do Irish consumers have?
- The facts
- The implications
- What savings and investment products do Irish consumers own?
- The facts
- The implications
- Why do Irish consumers save?
- The facts
- The implications
Trend Application
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- Trend: Prepare for the Worst
- Trend: Help Me Help Myself
- Trend: Generation Next
Market Overview
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- Key points
- Both Irish economies back on road to growth
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- Figure 6: GDP growth, annual %, UK, NI and RoI, actual and projected, 2012-15
- Positive consumer outlook could encourage spending over saving
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- Figure 7: Consumer Confidence Index, NI, September 2011-September 2014
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- Figure 8: Consumer Sentiment Index, RoI, December 2011-December 2014
- Savings ratio forecast to be 3.3% in NI, 5.2% in RoI in 2015
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- Figure 9: Household savings ratio as proportion of household income, UK (including NI) and RoI, actual and forecast, 2008-15
- Most NI consumers expect to maintain savings at their current level
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- Figure 10: Savings intentions for next 12 months, NI, April 2014
- RoI consumers broadly positive about savings environment
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- Figure 11: Savings environment index, RoI, December 2013-December 2014
- Figure 12: Agreement with selected statements relating to saving environment, RoI, December 2014
- RoI consumers’ attitudes towards own saving habits generally positive
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- Figure 13: Savings Attitude Index, RoI, December 2013-December 2014
- Possible shift from prioritising debt reduction to saving underway in RoI…
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- Figure 14: Consumers’ intentions for surplus money, RoI, December 2013 and December 2014
- …but only a minority of Irish consumers can afford to save every month
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- Figure 15: How consumers rate their current financial situation, NI and RoI, December 2014
Market Size and Forecast
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- Key points
- Slight increase in value of deposits in 2014
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- Figure 16: Total deposits from private households, Ireland, RoI and NI, 2010-20
- 2013-14 growth in value largely came from NI consumers
- Recovery to build (slow) momentum from 2015 onwards
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- Figure 17: Index of total deposits from private households, RoI and NI, 2010-20
- Interest rates to strongly influence consumers’ savings behaviour
Strengths and Weaknesses
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- Strengths
- Weaknesses
Companies and Innovations
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- Key points
- Examples of innovation
- Sweden-based Ikano Bank is taking the phrase ‘playing around with your finances’ to a new level
- Fee-free branchless bank interacts with its customers through a mobile app
- Social Money launches SmartyPig, making it easier and more social to save money
- Companies and products
- Allied Irish Bank
- Key facts
- Savings products
- Recent developments
- An Post
- Key facts
- Savings products
- Recent developments
- Bank of Ireland
- Key facts
- Savings products
- Recent developments
- The Co-operative Bank
- Key facts
- Savings products
- Recent developments
- Danske Bank
- Key facts
- Savings products
- Recent developments
- EBS Limited
- Key facts
- Savings products
- Recent developments
- First Trust Bank
- Key facts
- Savings products
- Recent developments
- HSBC
- Key facts
- Savings products
- Recent developments
- KBC Group
- Key facts
- Savings products
- Recent developments
- Nationwide
- Key facts
- Savings products
- Recent developments
- Permanent TSB
- Key facts
- Savings products
- Recent developments
- Post Office
- Key facts
- Savings products
- Recent developments
- RaboDirect
- Key facts
- Savings products
- Santander
- Key facts
- Savings products
- Recent developments
- Ulster Bank
- Key facts
- Savings products
- Recent developments
The Consumer – Ownership of Savings Products
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- Key points
- Simple, risk-free products most popular among Irish consumers
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- Figure 18: Ownership of savings and investment products, NI and RoI, October 2014
- Standard savings accounts popular among all ages and means
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- Figure 19: Ownership of savings accounts, by age and social class, NI and RoI, October 2014
- Ownership of notice accounts highest among men and ABC1s
- NI consumers opting for cash ISAs over stocks and shares ISAs
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- Figure 20: Ownership of cash ISAs and stocks and shares ISAs, by working status, NI, October 2014
- High level intent to purchase stocks and shares ISAs in future
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- Figure 21: Consumers who do not own stocks and shares ISAs but plan on buying within the next year, by gender and age, NI, October 2014
- Pension gap between men and women still going strong
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- Figure 22: Ownership of personal pensions, by gender, age and social class, NI and RoI, October 2014
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- Figure 23: Ownership of company pensions, by gender, age and social class, NI and RoI, October 2014
The Consumer – Value of Savings
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- Key points
- Most consumers have some savings – but generally quite modest
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- Figure 24: Amounts that consumers currently have in their savings and investments (excluding pensions and second homes), NI and RoI, October 2014
- ABC1s most likely to have high level of savings/investments
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- Figure 25: Consumers who claim to have no savings or investments, by social class, NI and RoI, October 2014
- Younger consumers less likely to save
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- Figure 26: Consumers who claim to have no savings or investments, by age, NI and RoI, October 2014
- Women lagging men in the savings/investment stakes
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- Figure 27: Consumers who claim to have no savings or investments, by gender, NI and RoI, October 2014
The Consumer – Reasons for Saving
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- Key points
- Emergencies, surprises and security the main reasons for saving
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- Figure 28: Intended purpose of savings and investments, RoI and NI, October 2014
- Women focused on precautionary saving, men on retirement
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- Figure 29: Consumers who are saving ‘for the security of knowing the money is there’, by gender and social class, NI and RoI, October 2014
- Holidays and house deposits also on women’s saving agenda
- Social class a definite factor in why consumers save
- Age is a major factor in consumers’ motivation for saving
Appendix
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- NI Toluna tables
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- Figure 30: Amount that consumers currently have in their savings and investments (excluding pensions and second homes), by demographics, NI, October 2014
- Figure 31: Amount that consumers currently have in their savings and investments (excluding pensions and second homes), by demographics, NI, October 2014 (continued)
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- Figure 32: Ownership of savings account (excluding Post Office accounts), by demographics, NI, October 2014
- Figure 33: Ownership of cash ISA, by demographics, NI, October 2014
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- Figure 34: Ownership of stocks and shares ISA, by demographics, NI, October 2014
- Figure 35: Ownership of company pension, by demographics, NI, October 2014
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- Figure 36: Ownership of NS&I (National Savings and Investments) products (eg premium bonds, index-linked savings certificates), by demographics, NI, October 2014
- Figure 37: Ownership of personal pension, by demographics, NI, October 2014
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- Figure 38: Ownership of individual company shares, by demographics, NI, October 2014
- Figure 39: Ownership of notice account, by demographics, NI, October 2014
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- Figure 40: Ownership of with-profits, unit-linked, money market, distribution or guaranteed investment bond, by demographics, NI, October 2014
- Figure 41: Ownership of Post Office/An Post Saving Account, by demographics, NI, October 2014
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- Figure 42: Ownership of investment trust, by demographics, NI, October 2014
- Figure 43: Ownership of other savings or investments, by demographics, NI, October 2014
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- Figure 44: Intended purpose of savings and investments, by demographics, NI, October 2014
- Figure 45: Intended purpose of savings and investments, by demographics, NI, October 2014 (continued)
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- Figure 46: Intended purpose of savings and investments, by demographics, NI, October 2014 (continued)
- RoI Toluna tables
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- Figure 47: Amount that consumers currently have in their savings and investments (excluding pensions and second homes), by demographics, RoI, October 2014
- Figure 48: Amount that consumers currently have in their savings and investments (excluding pensions and second homes), by demographics, RoI, October 2014 (continued)
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- Figure 49: Ownership of savings account (excluding Post Office accounts), by demographics, RoI, October 2014
- Figure 50: Ownership of company pension, by demographics, RoI, October 2014
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- Figure 51: Ownership of personal pension, by demographics, RoI, October 2014
- Figure 52: Ownership of individual company shares, by demographics, RoI, October 2014
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- Figure 53: Ownership of notice account, by demographics, RoI, October 2014
- Figure 54: Ownership of with-profits, unit-linked, money market, distribution or guaranteed investment bond, by demographics, RoI, October 2014
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- Figure 55: Ownership of Post Office/An Post saving account, by demographics, RoI, October 2014
- Figure 56: Ownership of state savings products (savings bonds, savings certificates, instalment savings and prize bonds), by demographics, RoI, October 2014
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- Figure 57: Ownership of investment trust, by demographics, RoI, October 2014
- Figure 58: Ownership of other savings or investments, by demographics, RoI, October 2014
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- Figure 59: Intended purpose of savings and investments, by demographics, RoI, October 2014
- Figure 60: Intended purpose of savings and investments, by demographics, RoI, October 2014 (cont)
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- Figure 61: Intended purpose of savings and investments, by demographics, RoI, October 2014 (cont)
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