Table of Contents
Executive Summary
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- The market
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- Figure 1: Total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2013-24
- Forecast
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- Figure 2: Index of total number of active current accounts, actual, estimated, forecasted and projected, RoI and NI, 2013-24
- Market factors
- Cautious optimism around Irish economic outlook
- Continued job growth and low unemployment in both economies
- Current account fees and charges increasing across the board in RoI
- Switching more common among NI than RoI consumers
- Companies and brands
- The consumer
- Most Irish consumers have a minimum of one current account
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- Figure 3: Number of personal current accounts owned by consumers (including those held jointly with someone else), NI and RoI, June 2019
- NI current account market far more competitive than RoI market
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- Figure 4: Where consumers hold their main current account (ie the one that their salary is paid into or the one they use most regularly), NI, June 2019
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- Figure 5: Where consumers hold their main current account (ie the one that their salary is paid into or the one they use most regularly), RoI, June 2019
- Majority of RoI and many NI consumers have never switched accounts
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- Figure 6: Whether consumers have ever switched where their main current account is held, NI and RoI, June 2019
- Digital banking channels dominate consumer preferences
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- Figure 7: Preferred methods of conducting selected banking activities, NI and RoI, June 2019
- What it means
The Market – What You Need to Know
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- Positive outlook for both Irish economies, but pitfalls remain
- Employment growth and low unemployment across Ireland
- Cost of current accounts likely limited multiple account ownership in RoI
- Switching more common among NI than RoI consumers
Market Size and Forecast
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- Slight increase in number of active current accounts in Ireland in 2019
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- Figure 8: Total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2013-24
- RoI market to grow by 9% and NI by 4% in coming five years
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- Figure 9: Index of total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2013-24
Market Drivers
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- Both Irish economies set to continue growing over coming years
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- Figure 10: Economic growth forecasts, NI, RoI and UK, 2019-23
- Job growth continuing in RoI, slowing down in NI - but unemployment low
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- Figure 11: Employment growth forecasts, NI, RoI and UK, 2019-23
- Current accounts becoming more expensive for RoI consumers
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- Figure 12: Charges and fees, personal current accounts, RoI, July 2019
- Switching activity among RoI consumers falls to lowest ever level
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- Figure 13: Number of current account switches, RoI, 2013-18
- Almost 1 million switches in UK (including NI) in 12 months to March 2019
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- Figure 14: Monthly switching volumes, UK (including NI), October 2018-March 2019
- In Q4 2018, NI-based providers lost over 2,000 accounts to account switching
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- Figure 15: Current account switching, participant data, UK (including NI), Q4 2018
- More than 50,000 complaints about current accounts in RoI in 2018
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- Figure 16: Number of complaints about current accounts, RoI, 2014-18
- Account administration and processing account for 50% of complaints
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- Figure 17: Complaints about current accounts, by complaint type, RoI, H2 2018
- Complaints about current accounts up 27% in 2018/2019 in UK (including NI)
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- Figure 18: Volume of new complaints received by FOS, current accounts, UK (including NI), 2017-19
Companies and Brands – What You Need To Know
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- AIB and Danske Bank investing in responsible business practises
- KBC Ireland continues to focus on compatibility
- Permanent TSB investing in digital banking project
- Santander repurposes closed branch as Work Café
- Ulster Bank change current account fees for RoI consumers
Who’s Innovating?
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- AIB acquire Payzone in joint venture with First Data
- NatWest trialling debit card with fingerprint contactless payment
- Starling Bank confirms it would be launching RoI subsidiary
Companies and Brands
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- Allied Irish Bank
- Key facts
- Product portfolio
- Recent developments
- An Post (RoI only)
- Key facts
- Product portfolio
- Bank of Ireland
- Key facts
- Product portfolio
- Recent developments
- Danske Bank (NI only)
- Key facts
- Product portfolio
- Recent developments
- EBS (RoI only)
- Key facts
- Product portfolio
- Halifax (NI only)
- Key facts
- Product portfolio
- Recent developments
- HSBC (NI only)
- Key facts
- Product portfolio
- Recent developments
- KBC Ireland (RoI only)
- Key facts
- Product portfolio
- Recent developments
- Nationwide (NI only)
- Key facts
- Product portfolio
- Recent developments
- Permanent TSB (RoI only)
- Key facts
- Product portfolio
- Recent developments
- Santander (NI)
- Key facts
- Product portfolio
- Recent developments
- Ulster Bank (NI only)
- Key facts
- Product portfolio
- Recent developments
The Consumer – What You Need to Know
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- Only one in 25 consumers in Ireland does not have a current account
- More competition in NI than in RoI, with two dominant RoI providers
- More than half of RoI and almost half NI consumers never switched
- Digital channels first choice among consumers for all activities
Ownership of Current Accounts
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- Vast majority of consumers in Ireland have at least one current account
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- Figure 19: Number of personal current accounts owned by consumers (including those held jointly with someone else), NI and RoI, June 2019
- Social class a significant factor in multiple account ownership
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- Figure 20: Consumers who own two personal current accounts (including those held jointly with someone else), by social class, NI and RoI, June 2019
- Tendency to have multiple accounts increases exponentially with income
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- Figure 21: Consumers who own two personal current accounts (including those held jointly with someone else), by household income, NI and RoI, June 2019
- Multiple account ownership highest among those with 'healthy' finances
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- Figure 22: Consumers who own two personal current accounts (including those held jointly with someone else), by financial situation, NI and RoI, June 2019
Where Current Accounts Are Held
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- No single dominant force in NI current account market
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- Figure 23: Where consumers hold their main current account (ie the one that their salary is paid into or the one they use most regularly), NI, June 2019
- Similar level of competition in NI's non-main current account market
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- Figure 24: Where consumers hold their other/non-main current account, NI, June 2019
- Just four providers control 85% of RoI current account market
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- Figure 25: Where consumers hold their main current account (ie the one that their salary is paid into or the one they use most regularly), RoI, June 2019
- Less dominance, more competition in RoI non-main account sector
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- Figure 26: Where consumers hold their other/non-main current account, RoI, June 2019
Switching Activity
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- Most RoI, many NI consumers never switched current account provider
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- Figure 27: Whether consumers have ever switched where their main current account is held, NI and RoI, June 2019
- Recent switching activity low among both sets of consumers
- Younger consumers somewhat more likely to have never switched
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- Figure 28: Consumers who have never switched their main current account provider, by gender and age, NI and RoI, June 2019
Methods Used for Selected Activities
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- Digital (mobile and online) now the mainstream channel for banking
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- Figure 29: Preferred methods of conducting selected banking activities, NI and RoI, June 2019
- Figure 30: Preferred methods of conducting selected banking activities; internet (both mobile banking and online banking) vs in-branch counter services, NI, June 2019
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- Figure 31: Preferred methods of conducting selected banking activities; internet (both mobile banking and online banking) vs in-branch counter services, RoI, June 2019
- Branches popular when consultation or documentation required
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- Figure 32: Consumers who prefer to use in-branch counter services when conducting various banking activities, NI and RoI, June 2019
- Online banking filling the role that branches previously held
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- Figure 33: Consumers who prefer to use online banking using a desktop/laptop when conducting various banking activities, NI and RoI, June 2019
- Mobile banking the main channel for fast, simple activities
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- Figure 34: Consumers who prefer to use mobile banking (ie app/website) when conducting various banking activities, NI and RoI, June 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Abbreviations
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