Table of Contents
Overview
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- What you need to know
- Issues covered in this Report
- Definitions
Executive Summary
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- The market
- Around 6.96 million active current accounts in NI and RoI
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- Figure 1: Total number of active current accounts, IoI, RoI and NI, 2012-17
- Forecast
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- Figure 2: Index of total number of active current accounts, actual, forecast and projected, RoI and NI, 2012-22
- Market factors
- RoI economic outlook good, NI stalling under uncertainty
- Switching low in RoI, somewhat higher in UK (including NI)
- Decline in complaints about current accounts in NI and RoI
- Companies and brands
- The consumer
- Vast majority of consumers own at least one current account
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- Figure 3: Number of current accounts owned by consumers (including those owned jointly with someone else), NI and RoI, September 2017
- Healthy competition in current account market in NI
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- Figure 4: Bank, building society or credit union where consumers have their main current accounts, NI, September 2017
- RoI current account market dominated by two institutions
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- Figure 5: Building society or credit union where consumers have their main current accounts, RoI, September 2017
- Switching remains a minority activity among Irish consumers
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- Figure 6: If consumers have switched their main current account, NI and RoI, September 2017
- Convenience a major factor in customer/bank bond
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- Figure 7: Agreement with statements relating to current accounts and current account providers, NI and RoI, September 2017
- What it means
The Market – What You Need to Know
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- RoI economic outlook good, NI stalling under uncertainty
- Switching low in RoI, somewhat higher in UK (including NI)
- Decline in complaints about current accounts in NI and RoI
Market Size and Forecast
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- Approaching 7 million active current accounts across Ireland
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- Figure 8: Total number of active current accounts, IoI, RoI and NI, 2012-22
- RoI market in decline, while NI market growing marginally
- 2017-22 to bring only moderate growth in number of accounts
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- Figure 9: Index of total number of active current accounts, actual, forecast and projected, RoI and NI, 2012-22
Market Drivers
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- RoI economy forecast to grow by 3.2% in 2018, unemployment below 6%
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- Figure 10: Key economic indicators, RoI, actual, estimated and forecast, 2016-18
- Figure 11: Labour market summary, estimated and forecast, 2016-18
- Economic growth in NI subdued in climate of Brexit-induced uncertainty
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- Figure 12: Economic growth, annual % increase, estimated and forecast, NI and UK, 2017-19
- Figure 13: Unemployment rate, NI, estimated and forecast, 2017 and 2018
- Low level of current account switching among RoI consumers
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- Figure 14: Number of current accounts switched, RoI, H1 2011-H1 2016
- Switching activity gradually slowing in UK (including NI)
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- Figure 15: Number of current account switches, UK (incl. NI), Q4 2014-Q2 2017
- All major NI institutions losing current accounts to switching
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- Figure 16: Switching gains and losses, UK (including NI) financial institutions, Q4 2016
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- Figure 17: Switching losses, NI-based financial institutions, Q4 2015 and Q4 2016
- Significant decline in complaints about current accounts in UK (including NI)
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- Figure 18: Number of new complaints about current accounts submitted to FOS, UK (including NI), 2011/12-2016/17
- 4,300 complaints submitted to RoI's Financial Ombudsman in 2016
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- Figure 19: Valid complaints submitted to Financial Ombudsman (Ireland), sectoral analysis, 2016
- Figure 20: Banking complaints submitted to Financial Ombudsman (Ireland), by type, 2016
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- Figure 21: Complaints about accounts submitted to Financial Ombudsman (Ireland), 2011-16
- Complaints to providers about current accounts down by more than 40%
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- Figure 22: Complaints about current accounts submitted to providers, H2 2013-H1 2016
- Figure 23: Complaints about current accounts submitted to providers, by complaint type, H1 2016
Companies and Brands – What You Need to Know
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- Bank putting focus on younger customers
- Bank of Ireland and Santander investing in fintech
- Permanent TSB announces significant charges on certain customers
Companies and Brands
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- Santander (NI Only)
- Key facts
- Product portfolio
- Recent developments
- Ulster Bank
- Key facts
- Product portfolio
- Recent developments
- Halifax (NI Only)
- Key facts
- Product portfolio
- Recent developments
- Danske Bank (NI Only)
- Key facts
- Product portfolio
- Recent developments
- Allied Irish Bank/ First Trust
- Key facts
- Product portfolio
- Recent developments
- Bank of Ireland
- Key facts
- Product portfolio
- Recent developments
- Permanent TSB (RoI Only)
- Key facts
- Product portfolio
- Recent developments
- Nationwide (NI Only)
- Key facts
- Product portfolio
- Recent developments
- An Post (RoI Only)
- Key facts
- Product portfolio
- HSBC (NI Only)
- Key facts
- Product portfolio
- Recent developments
- KBC (RoI Only)
- Key facts
- Product portfolio
- Recent developments
- EBS (RoI Only)
- Key facts
- Product portfolio
Who’s Innovating?
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- Digital-only current accounts
- Triodos’ ethical current account
- Monzo releases current account product after gaining UK banking licence in April
The Consumer – What You Need to Know
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- Vast majority of consumers own at least one current account
- Healthy competition in current account market in NI
- RoI current account market dominated by two institutions
- Switching remains a minority activity among Irish consumers
- Convenience a major factor in customer/bank bond
Ownership of Current Accounts
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- Almost universal ownership of current accounts among Irish consumers
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- Figure 24: Number of current accounts owned by consumers (including those owned jointly with someone else), NI and RoI, September 2017
- Around a third of consumers have more than one account
- Married/cohabiting consumers more likely to have multiple accounts
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- Figure 25: Consumers who have two current accounts, by marital status, NI and RoI, September 2017
- Multiple account ownership highest among higher earners
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- Figure 26: Consumers who have two current accounts, by household income, NI and RoI, September 2017
Where Current Accounts are Held
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- High level of competition in NI main current account market
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- Figure 27: Bank, building society or credit union where consumers have their main current accounts, NI, September 2017
- Similar level of spread in NI other or non-main account market
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- Figure 28: Bank, building society or credit union where consumers have their other (non-main) current accounts, NI, September 2017
- Only four providers of main accounts in RoI, with two dominating
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- Figure 29: Building society or credit union where consumers have their main current accounts, RoI, September 2017
- More competition in RoI's secondary account market
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- Figure 30: Building society or credit union where consumers have their other (non-main) current accounts, RoI, September 2017
Switching Activity
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- Most consumers have never switched their current account provider
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- Figure 31: If consumers have switched their main current account, NI and RoI, September 2017
- Half of all 'switchers' did so more than five years ago
- Women and younger consumers least likely to have switched provider
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- Figure 32: Agreement with statement 'I’ve never switched my main current account provider', by gender and age, NI and RoI, September 2017
- C2DEFs and low earners most inclined to remain loyal to provider
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- Figure 33: Agreement with statement 'I’ve never switched my main current account provider', by social class and gross annual household income, NI and RoI, September 2017
Attitudes towards Current Accounts and Providers
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- Choice of current account provider mostly down to convenience
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- Figure 34: Agreement with statements relating to current accounts and current account providers, NI and RoI, September 2017
- Convenience a major factor in effective cross-selling…
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- Figure 35: Agreement and disagreement with statement "It is more convenient for me to hold the majority of my financial products with my main current account provider", NI and RoI, September 2017
- …and a factor too in initial decision to choose existing provider
- Around half of all consumers would go first to existing provider
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- Figure 36: Agreement and disagreement with statement "I go to my main current account provider first when looking for a new financial product", NI and RoI, September 2017
- Reasonably high level of trust among consumers in providers
- High level of reluctance to switch current account provider
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- Figure 37: Agreement and disagreement with statement "I don't see the point in switching, all banks are the same", NI and RoI, September 2017
- Consumers not overly inclined to recommend bank to others
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- Figure 38: Agreement and disagreement with statement "I have recommended my main current account provider to friends/family", NI and RoI, September 2017
- Low level of connection/relationship felt by consumers
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- Figure 39: Agreement and disagreement with statement "I have a good personal relationship with the staff in my local branch", NI and RoI, September 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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