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Current Accounts - Ireland - August 2019

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2013-24
Forecast
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
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
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
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
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
Figure 7: Preferred methods of conducting selected banking activities, NI and RoI, June 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
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
Slight increase in number of active current accounts in Ireland in 2019
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
Figure 9: Index of total number of active current accounts, actual, estimated, forecasted and projected, IoI, RoI and NI, 2013-24
MARKET DRIVERS
Both Irish economies set to continue growing over coming years
Figure 10: Economic growth forecasts, NI, RoI and UK, 2019-23
Job growth continuing in RoI, slowing down in NI - but unemployment low
Figure 11: Employment growth forecasts, NI, RoI and UK, 2019-23
Current accounts becoming more expensive for RoI consumers
Figure 12: Charges and fees, personal current accounts, RoI, July 2019
Switching activity among RoI consumers falls to lowest ever level
Figure 13: Number of current account switches, RoI, 2013-18
Almost 1 million switches in UK (including NI) in 12 months to March 2019
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
Figure 15: Current account switching, participant data, UK (including NI), Q4 2018
More than 50,000 complaints about current accounts in RoI in 2018
Figure 16: Number of complaints about current accounts, RoI, 2014-18
Account administration and processing account for 50% of complaints
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)
Figure 18: Volume of new complaints received by FOS, current accounts, UK (including NI), 2017-19
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
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?
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
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
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
Vast majority of consumers in Ireland have at least one current account
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
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
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
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
No single dominant force in NI current account market
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
Figure 24: Where consumers hold their other/non-main current account, NI, June 2019
Just four providers control 85% of RoI current account market
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
Figure 26: Where consumers hold their other/non-main current account, RoI, June 2019
SWITCHING ACTIVITY
Most RoI, many NI consumers never switched current account provider
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
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
Digital (mobile and online) now the mainstream channel for banking
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
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
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
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
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
Data sources
Abbreviations

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