Notwithstanding some decline in multiple account ownership (particularly among RoI consumers), the Irish current account market has emerged from the recession with near universal penetration. Current accounts are by far the most widely owned financial product among Irish consumers, and are central to how Irish consumers organise and manage their personal finances.

Although there is some potential for growth through increased multiple account ownership, the withdrawal of free banking and the subsequent introduction of steadily increasing fees and charges is a major obstacle to increased levels of multiple account ownership among RoI consumers. Moreover, there is a general reluctance among consumers from both regions to switch providers. Future growth will likely come about alongside economic recovery, which will bring about an increase in economic activity and the numbers of consumers in employment.

• What are the existing and potential current account ownership levels? – What are the current ownership levels of current accounts among Irish consumers? Is there much potential for growing ownership in the coming years?

• Are Irish consumers inclined to switch current account provider? – How likely are Irish consumers to switch their main current account provider? What are the main influences on switching behaviour?

• What are consumers’ general attitudes towards current accounts and current account providers? – What kind of current account do consumers want? How do consumers feel about additional extras, perks and other added features?

Other Mintel reports of relevance include:

• Credit Cards – UK, August 2015

• Current Accounts – UK, July 2015

• Plastic Cards – Ireland, July 2015

• Savings – Ireland, January 2015

• Personal Loans – Ireland, September 2014

• Current Accounts – Ireland, August 2014.

In compiling this report, Mintel has gathered data from separate NI and RoI sources (eg NISRA, CSO). In some cases, therefore, it has not been possible to provide comparable data for each region.

For the purposes of this report:

• Ireland or IoI refers to the island of Ireland.

• NI refers to Northern Ireland.

• RoI refers to the Republic of Ireland.

• Therefore, ‘Irish consumers’ refers to both NI and RoI consumers.

Mintel also draws consumer insight from other sources:

• Mintel’s trend database and previous Mintel reports in the UK and Ireland.

• Exclusive consumer research commissioned by Mintel and conducted by Toluna in June 2015.

For the purposes of this report, Mintel commissioned exclusive online consumer research into Irish consumers’ consumption of and attitudes towards current accounts. The research was carried out by Toluna on behalf of Mintel in July 2015.

A total of 1,350 internet users aged 18+ in RoI and 650 internet users aged 18+ in NI were asked questions including:

“How many personal current accounts do you have? Please include any you hold jointly with someone else. Please exclude business accounts.”

“Which bank, building society or credit union do you hold your current account(s) with?”

“Have you ever switched where your main current account is held? If so, how long ago was this?”

“You have indicated that you own multiple current accounts. Have you opened an additional current account within the last two years?”

“Which of the following factors prompted you to open a new current account/switch to a new provider?”

“Still thinking about current accounts, which of the following statements do you agree with?”

The results from this survey are discussed in The Consumer sections of this report.

Mintel also draws consumer insight from other sources such as Mintel’s trend database and previous Mintel reports from the UK and Ireland.

Please note that the results presented in The Consumer sections of this report relate to the usage and habits of Irish internet users only, and do not account for the behaviours of non-internet users. Eurostat (January 2015) highlights that 80% of RoI consumers have used the internet in the last 12 months, while the Office for National Statistics (ONS, May 2014) highlights that 79% of NI consumers have used the internet.

Please note that in the Market Size and Forecast section of this report, data is forecast by projecting how this particular market will progress based on various independent macroeconomic variables. Mintel uses economic data collected on inflation, population, exchange rate and GDP to run a multivariate linear regression and trend function. With this function Mintel is able to forecast future market sizes and interpret the results based on the above variables including other independent factors that could change the future market. (Economic data is collected from NISRA, ONS, CSO and other statistical sources.)

This report examines the dynamics of the current account market in Ireland, assessing the main trends that are underway and consumer attitudes towards a range of factors. The report examines the personal current account market only.

Current accounts can be classified into various sub-types according to their target market and pricing model. In NI, the most common type of current account is the free-if-in-credit (or ‘free banking’) model. This is where the customer does not pay any direct fees for having the account, if in credit, or for core services such as direct debits and cheques. Interest is usually charged on any money borrowed via an overdraft, which can be either ‘authorised’ or ‘unauthorised’.

Charges are usually significant on borrowing above an arranged overdraft limit. Student and graduate accounts are variants of the free-if-in-credit model and may offer special features, such as an interest-free overdraft. Similarly, basic bank accounts are based on the free-if-in-credit model and do not carry any charges provided there are sufficient funds in the account to meet any payments made.

The other main category is the premium or packaged account. This involves the customer being charged a monthly fee in return for a range of additional benefits, such as travel insurance and motor breakdown cover. In RoI, premium or packaged accounts are far less common. However, even standard accounts typically entail monthly or quarterly maintenance charges – which are fixed, upfront amounts levied on the customer’s account – in addition to transaction fees that depend on usage. In certain cases, it is possible to avoid these monthly or quarterly charges by maintaining a certain balance in the account.