National Consumer Agency

Market Research Findings:Banking & Consumer Behaviour

February 2014Research Conducted by

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Key Findings

Banking & Consumer Behaviour

Research Background and Methodology

Profile of Sample

Table of Contents

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Key Findings

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Key Findings

• 8 in 10 adults have a current account.

• 34% of current account holders have had their “free” banking withdrawn in the past 12 months.

• The key behavioural changes from losing free banking are; taking out more cash on each withdrawal (28%), using debit cards less often (25%) and using credit card more for routine transactions (13%).

• At this point, 32% of current account holders state that they have free banking. Switching to a bank with lower fees are the main consequences should free banking be withdrawn.

• 6% have switched their main current account in the past 12 months.

• 8% intend switching their current account in the next six months.

• Nearly 3 in 5 (57%) have never checked to see if there was a better deal/package available.

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Banking – Consumer Behaviour

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Use of Financial InstitutionsBase: All Adults 16+, 1,008

Any Financial Institution

Bank

Credit Union

An Post

Building Society

None of these

90

79

42

10

9

10

94

86

39

13

11

6

95

86

43

14

10

5

W10W11

%

35-64ABC1Dublin/ROL

U 24s

Q. Do you have any accounts with, or use, financial services provided by any of the following?

W10 November 2012W11 June 2013W12 November 2013 W12

Female65+ABC1Dublin

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Majority have a Current Account Base: Any financial account holders - 963

83 86 85

17 14 15

W10%

Yes – have a current account

No

(17%)

Q. And do you have a current account?

W11%

W12%

85% of those with financial accounts hold a current account – this equates to 80% of the total sample.

W10 November 2012W11 June 2013W12 November 2013

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A third of current account holders have had their “free” banking withdrawn in the past 12 monthsBase: All who have a current account

2231 34

43

50 48

35

19 18

%

W10(740)

%

W11(815)

Yes

No

Don’t know

Has Your Bank Changed Fee Structure for Fee Free Banking?

Highest amount among 35-49 (42%)/Dublin

Q. Within the past 12 months has your bank changed its fee structures so that you no longer qualify for fee free banking?

W10 November 2012W11 June 2013W12 November 2013

%

W12(820)

34% of current account holders have had their “free” banking withdrawn in the past 12 months.

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Behaviour changes resulting from losing “free” bankingBase: Those with a current account who no longer qualify for free banking - 278

23 25 2228

15 13 8 8 7 7 6 7

2631

16

22

15 16 30 32 30 33

15 17

5244

6349

71 7263 60 63 59

79 76

I have done this

I intend to do this

Will not do this

Q. Has this change in fee structure prompted you to change or do you intend to change the following ways you use your current account?

Use Debit/laser cards less often

%

Take out larger amounts of cash

when making withdrawals

%

Use my credit card more for

routine transactions

%

Switch to a bank that offers free banking that I will quality for

%

Switch to a bank that has lower fees/charges

%

I would close my account

%

Jun 13 Nov 13 Jun 13 Nov 13 Jun 13 Nov 13 Jun 13 Nov 13 Jun 13 Nov 13 Jun 13 Nov 13

28% of consumers now take out larger amount of cash when making withdrawals and 25% state they use their debit/laser card less often.

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Use my debit laser card less often

Switch to a bank that offers me fee free banking

Switch to a bank that offers lower fees / charges

Close my account

23

22

21

20

26

30

30

15

31

32

33

17

Take out more cash when making withdrawals

Use my debit / laser card less often

15

13

22

23

28

25

Reduced use of debit cards and making larger cash withdrawals evidentBase: Those with a current account who no longer qualify for free banking

%

W10W11

Q. Has this change in fee structure prompted you to change or do you intend to change the following ways you use your current account?

%I now do this…. I intend to do this….

W10 November 2012W11 June 2013W12 November 2013W12

There is also the intent however to consider banks with lower fees and charges.

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Incidence of “free” banking and likely behaviour if “free” banking was removedBase: All current account holders - 820

Consequences of change to fee free banking structure (All with fee free banking – 304)

%June 2013

(815)

Q. Do you have fee free banking with your current account at the moment?Q If fee free banking was no longer offered by your bank or the criteria for fee free banking was changed so that you no

longer benefited from fee free banking, how would this be likely to affect your banking behaviour?

5137

12

Currently pay for banking

Don’t know

Currently have fee free banking

I would switch to a bank that offered fee free banking that I still qualify for

I would use my debit/credit card less often

I would use my credit card more often for routine transactions

No affect at all

34

19

8

10

6

8

32

%November 2013

(820)

5332

14

Currently pay for banking

Don’t know

Currently have fee free banking

I would switch to a bank that offered fee free banking that I still qualify for

I would use my debit/credit card less often

I would use my credit card more often for routine transactions

No affect at all

39

26

18

13

3

8

15

Consequences of change to fee free banking structure (all with fee free banking – 271)

Nov 13 vs June 13

+5%

+7%

+10%

+3%

-3%

=

-17%

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Nov-13 Jun-13

Nov-12 Jun-12

Nov-11

Current Account - Switching Behaviour

7 1

92

Yes, I have to bank is closing down

No, I do not plan on switching

Q. Have you switched providers for any of the following products or services within the past 12 months? Q. Do you plan on switching the bank that you have your main current account with in the next 6 months?Q. When was the last time you checked to see if there was a better deal/package available for?

Yes, I plan on switching

Switched%

Bank financial institution with current A/C service

22

44

6

Switched current account in past 12 months(Base: All current account holders )

Switching current account in next 6 months (Base: All current account holders) Most recent checking on alternative providers

(Base: All current account holders)

Bank/Financial institution who offers current acc service

%

Past 12 months

More than 12 months but less

than 3 years ago

More than 3 years ago

Have never checked

18

14

10

57

6% have switched their main current account in the past 12 months. 8% intend switching their current account in the next six months. Nearly 3 in 5 (57%) have never checked to see if there was a better deal/package available.

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Research Background and Methodology

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The research was conducted face-to-face using CAPI interviewing with 1,008 adults 16+. To ensure that the data is nationally representative, quotas were applied on the basis of

age, gender and social class. Interviewing was conducted from 12th – 21st November 2013.

A. Research Background and Methodology

Nov/Dec 2007 Aug 2008 Nov/Dec

2008Nov/Dec

2009

Nov/Dec 2010 May/June 2011

Benchmark Wave 4

Wave 6

Wave 1 Wave 2

Wave 7

Nov 2011

Wave 8

May/June 2009

Wave 3

June 2012

Wave 9

Nov 2012

Wave 10

June 2013

Wave 11

Nov 2013

Wave 12

June 2010

Wave 5

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Profile of SampleBase: All Adults 16+ 1,008

49

15

29

40

29

51

21

26

52

12

28

27

7

6

21

18

14

15

16

16

8

Male

Female

16-24

25-34

35-49

50-64

65+

Dublin

Rest of Leinster

Munster

Conn/ Ulster

ABC1

C2DE

F

Working full time

Working part time

Self-employed

Unemployed

Home duties

Retired

Student

Gender*%

Age*%

Region*%

Class*%

Employment Status

%

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Profile of SampleBase: All Adults 16+ 1,008

80

57

44

11 43

56

19

Yes – at home

Yes – at work

No access

Yes

No

Yes

No

Access the Internet(All Adults)

%

Purchase Online(All Adults)

%

Bank Online(All Adults)

% Social Media Sites Used(All who access the internet – 820)

%

Facebook

Twitter

LinkedIn

Bebo

None

57

13

6

2

40

Chart Title