Table of Contents
Overview
-
- What you need to know
- Issues covered in this Report
- Definitions
Executive Summary
-
- The market
- Around 7 million active current accounts across Ireland
-
- Figure 1: Total number of active current accounts, IoI, RoI, and NI, 2011-16
- Forecast
-
- Figure 2: Indexed total number of active current accounts, IoI, RoI, and NI, 2011-21
- Market factors
- Both economies continuing to grow – but uncertainties lie ahead
- Switching more popular among UK (including NI) than RoI consumers
- Increase in the number of complaints about current accounts
- Competitive strategies
- The consumer
- Vast majority of consumers have at least one current account
-
- Figure 3: Number of current accounts owned by consumers, NI and RoI, August 2016
- Seven major current account providers in NI
-
- Figure 4: Bank or financial institution where main current account is held, NI, August 2016
-
- Figure 5: Bank or financial institution where other current accounts are held, NI, August 2016
- ‘Main’ current account market in RoI controlled by AIB and BOI
-
- Figure 6: Bank or financial institution where main current account is held, RoI, August 2016
-
- Figure 7: Bank or financial institution where other current accounts are held, NI, August 2016
- Switching activity limited among Irish consumers
-
- Figure 8: If consumers have switched their main current account provider, August 2016
- Willingness to pay monthly fee for additional features
-
- Figure 9: Features that consumers would be willing to pay a monthly fee to have as part of their current account, August 2016
- What it means
Issues and Insights
-
- Little inclination on the part of consumers to switch accounts
- The facts
- The implications
- Monetary incentives most likely to persuade consumers to pay a fee
- The facts
- The implications
- Fees and charges putting brakes on account ownership in RoI
- The facts
- The implications
The Market – What You Need to Know
-
- Both economies continuing to grow – but uncertainties lie ahead
- Switching more popular among UK (including NI) than RoI consumers
- Increase in the number of complaints about current accounts
Market Size and Forecast
-
- Almost 7 million active current accounts in 2016
-
- Figure 10: Total number of active current accounts, IoI, RoI, and NI, 2011-21
- RoI market contracting, NI growing since economic downturn
- Modest increase in number of active accounts likely in coming years
-
- Figure 11: Index of total number of active current accounts, actual, forecast and projected, IoI, RoI, and NI, 2011-21
Market Drivers
-
- NI economic growth to fall to 1% in 2016, 0.2% in 2017
- RoI economic growth forecast at 4.8% in 2016, 3.8% in 2017
- Limited use of current account switching process in RoI
-
- Figure 12: Number of current accounts switched, RoI, 2011-15
- More than 1 million switches in UK (including NI) from mid-2015 to mid-2016
-
- Figure 13: Number of current account switches, UK (including NI), Q4 2014-Q2 2016
- Slightly above-average awareness among NI consumers
- NI-based providers experiencing net switching losses
-
- Figure 14: Switching gains and losses, UK (including NI) institutions, Q4 2015
- UK (including NI) complaints about current accounts up 66% in 2015/2016
-
- Figure 15: Complaints about current accounts received by Financial Ombudsman, UK (including NI), 2012-16*
-
- Figure 16: Complaints about packaged accounts received by Financial Ombudsman, UK (including NI), 2012-16*
- Complaints from RoI consumers about current accounts up 6% in 2015
-
- Figure 17: Complaints pertaining to bank accounts received by Financial Services Ombudsman, RoI, 2011-15
- Figure 18: Complaints about banking by product type received by Financial Services Ombudsman (Ireland), RoI, 2015
- Complaints about current accounts to providers on the rise
-
- Figure 19: Number of complaints about current accounts, RoI, H1 2013-H1 2015
-
- Figure 20: Complaints about current account, by complaint type, RoI, H1 2015
Competitive Strategies – What You Need to Know
-
- Santander launches 123 Lite for less affluent consumers
- Danske Bank launches first NI rewards account
- Halifax launches attractive cash incentive to new switchers
- Nationwide offers high interest rate account to target savers
- Tesco drops current account fees
Competitive Strategies
-
- Halifax seeks to attract switchers with cash incentive
- Nationwide offers high interest rate to appeal to savers
- M&S rewards existing current account holders
- Tesco drops monthly current account fee
- Bank of Ireland launches online current account service
- HSBC brings back £200 ‘switch and stay’ scheme
The Consumer – What You Need to Know
-
- Vast majority of consumers have a current account
- Seven major current account providers in NI
- ‘Main’ current account market in RoI controlled by AIB and BOI
- Switching activity limited among Irish consumers
- Willingness to pay monthly fee for additional features
The Consumer – Ownership of Current Accounts
-
- Current account ownership almost universal
-
- Figure 21: Number of current accounts owned by consumers, NI and RoI, August 2016
- More than a third of all consumer have multiple current accounts
- Consumers with children more likely to have two current accounts
-
- Figure 22: Consumers who have two current accounts, by presence of children in the household, NI and RoI, August 2016
- ABC1s more inclined than C2DEFs to have three or more accounts
-
- Figure 23: Consumers who have three or more current accounts, by social class, NI and RoI, August 2016
The Consumer – Where Current Accounts Are Held
-
- Four major, three minor providers of main current accounts in NI
-
- Figure 24: Bank or financial institution where main current account is held, NI, August 2016
- Six major providers in other or non-main current account market in NI
-
- Figure 25: Bank or financial institution where other current accounts are held, NI, August 2016
- RoI’s main current account market dominated by two providers
-
- Figure 26: Bank or financial institution where main current account is held, RoI, August 2016
- Credit unions lead the field in the non-main/other current account market
-
- Figure 27: Bank or financial institution where other current accounts are held, RoI, August 2016
The Consumer – Switching Activity
-
- 44% of NI, 31% of RoI consumers have switched provider
-
- Figure 28: If consumers have switched their main current account provider, August 2016
- Around half of all switchers did so more than 5 years ago
- Churn highest among ABC1s and younger consumers
-
- Figure 29: Consumers who have never switched their main current account provider, by age and social class, August 2016
The Consumer – Interest in Extra Features
-
- Some interest among consumers in additional current account features
-
- Figure 30: Features that consumers would be willing to pay a monthly fee to have as part of their current account, August 2016
- Women and 35-44s most interested in monetary incentives
-
- Figure 31: Consumers who would be willing to pay a monthly fee to have a one-off cash incentive as part of their current account, by gender and age, August 2016
- Protection against fraudulent activity most appealing to C2DEFs
-
- Figure 32: Consumers who would be willing to pay a monthly fee to have a card protection as part of their current account, by social class, August 2016
-
- Figure 33: Consumers who would be willing to pay a monthly fee to have ID theft protection as part of their current account, by social class, August 2016
- Older consumers want travel insurance, younger want gadget cover
-
- Figure 34: Consumers who would be willing to pay a monthly fee to have annual travel insurance as part of their current account, by gender and age, August 2016
-
- Figure 35: Consumers who would be willing to pay a monthly fee to have mobile phone or gadget insurance as part of their current account, by gender and age, August 2016
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Data sources
- Generational cohort definitions
- Abbreviations
Appendix – The Consumer
-
- NI Toluna data
-
- Figure 36: Number of current accounts owned by consumers, by demographics, NI, August 2016
-
- Figure 37: Bank or financial institution where main current account is held, by demographics, NI, August 2016
-
- Figure 38: Bank or financial institution where main current account is held, by demographics, NI, August 2016(continued)
-
- Figure 39: Bank or financial institution where main current account is held, by demographics, NI, August 2016(continued)
-
- Figure 40: Bank or financial institution where other current accounts are held, by demographics, NI, August 2016
-
- Figure 41: Bank or financial institution where other current accounts are held, by demographics, NI, August 2016(continued)
-
- Figure 42: Bank or financial institution where other current accounts are held, by demographics, NI, August 2016(continued)
-
- Figure 43: If consumers have switched their main current account provider, by demographics, NI, August 2016
-
- Figure 44: Features that consumers would be willing to pay a monthly fee to have as part of their current account, by demographics, NI, August 2016
-
- Figure 45: Features that consumers would be willing to pay a monthly fee to have as part of their current account, by demographics, NI, August 2016(continued)
-
- Figure 46: Features that consumers would be willing to pay a monthly fee to have as part of their current account, by demographics, NI, August 2016(continued)
- RoI Toluna data
-
- Figure 47: Number of current accounts owned by consumers, by demographics, RoI, August 2016
-
- Figure 48: Bank or financial institution where main current account is held, by demographics, RoI, August 2016
-
- Figure 49: Bank or financial institution where main current account is held, by demographics, RoI, August 2016(continued)
-
- Figure 50: Bank or financial institution where main current account is held, by demographics, RoI, August 2016(continued)
-
- Figure 51: Bank or financial institution where other current accounts are held, by demographics, RoI, August 2016
-
- Figure 52: Bank or financial institution where other current accounts are held, by demographics, RoI, August 2016(continued)
-
- Figure 53: Bank or financial institution where other current accounts are held, by demographics, RoI, August 2016(continued)
-
- Figure 54: If consumers have switched their main current account provider, by demographics, RoI, August 2016
-
- Figure 55: Features that consumers would be willing to pay a monthly fee to have as part of their current account, by demographics, RoI, August 2016
-
- Figure 56: Features that consumers would be willing to pay a monthly fee to have as part of their current account, by demographics, RoI, August 2016(continued)
-
- Figure 57: Features that consumers would be willing to pay a monthly fee to have as part of their current account, by demographics, RoI, August 2016(continued)
Back to top