National Consumer Agency Market Research Findings Banking Consumer
National Consumer Agency Market Research Findings: Banking & Consumer Behaviour February 2014 Research Conducted by
Table of Contents 2 § Key Findings § Banking & Consumer Behaviour § Research Background and Methodology Making Complaints § Profile of Sample www. consumerhelp. ie
3 Key Findings Making Complaints www. consumerhelp. ie
Key Findings 4 • 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 • 34% of current account holders have had their “free” banking withdrawn in the past 12 months.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%). Making Complaints • 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 Switching to a bank with lower fees are the main consequences should free banking be withdrawn.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. www. consumerhelp. ie
5 Banking – Consumer Behaviour Making Complaints www. consumerhelp. ie
Use of Financial Institutions Base: All Adults 16+, 1, 008 6 % 90 94 95 Any Financial Institution 79 Bank Credit Union 42 39 43 Making Complaints 9 11 10 Building Society www. consumerhelp. ie Female 65+ ABC 1 Dublin 10 13 14 An Post None of these 86 86 6 5 10 35 -64 ABC 1 Dublin/ROL W 10 November 2012 W 11 June 2013 W 12 November 2013 W 10 W 11 W 12 U 24 s Q. Do you have any accounts with, or use, financial services provided by any of the following?
Majority have a Current Account Base: Any financial account holders - 963 7 W 10 % W 10 November 2012 W 11 June 2013 W 12 November 2013 W 11 % W 12 % (17%) 85 86 Making Complaints Yes – have a current account No 83 17 14 15 85% of those with financial accounts hold a current account – this equates to 80% of the total sample. www. consumerhelp. ie Q. And do you have a current account?
A third of current account holders have had their “free” banking withdrawn in the past 12 months Base: All who have a current account 8 Has Your Bank Changed Fee Structure for Fee Free Banking? W 10 (740) % W 10 November 2012 W 11 June 2013 W 12 November 2013 22 Yes W 11 (815) % 31 W 12 (820) % 34 Highest amount among 35 -49 (42%)/Dublin Making Complaints 43 No 50 48 19 18 35 Don’t know 34% of current account holders have had their “free” banking withdrawn in the past 12 months. www. consumerhelp. ie Q. Within the past 12 months has your bank changed its fee structures so that you no longer qualify for fee free banking?
Behaviour changes resulting from losing “free” banking Base: Those with a current account who no longer qualify for free banking - 278 9 Use Debit/laser cards less often % Jun 13 I have done this 23 I intend to do this Will not do this 26 52 Nov 13 25 Take out larger amounts of cash when making withdrawals % Jun 13 22 Nov 13 Use my credit card more for routine transactions % Jun 13 Nov 13 15 16 71 72 Switch to a bank that offers free banking that I will quality for % Nov 13 Jun 13 8 8 7 Nov 13 7 28 30 32 I would close my account % Jun 13 16 Making Complaints 30 % Jun 13 6 Nov 13 7 15 17 79 76 33 22 31 63 44 Switch to a bank that has lower fees/charges 49 63 60 63 59 28% of consumers now take out larger amount of cash when making withdrawals and 25% state they use their debit/laser card less often. www. consumerhelp. ie 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?
Reduced use of debit cards and making larger cash withdrawals evident Base: Those with a current account who no longer qualify for free banking 10 % I now do this…. 15 Take out more cash when making withdrawals Use my debit / laser card less often W 10 W 11 W 12 I intend to do this…. 22 28 13 % 23 26 Use my debit laser card less often 31 Switch to a bank that offers me fee free banking 22 Switch to a bank that offers lower fees / charges 21 30 32 Making 25 Complaints 23 W 10 November 2012 W 11 June 2013 W 12 November 2013 30 33 20 Close my account 15 17 There is also the intent however to consider banks with lower fees and charges. www. consumerhelp. ie 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?
Incidence of “free” banking and likely behaviour if “free” banking was removed Base: All current account holders - 820 11 % Don’t know June 2013 (815) % 14 12 Currently have fee free banking November 2013 (820) Don’t know 51 37 Currently pay for banking 32 Currently have fee free banking Currently pay for banking 53 Making Complaints Consequences of change to fee free banking structure (All with fee free banking – 304) 34 I would switch to a bank that. . . 19 I would switch to a bank with. . . I would use my debit/credit card. . . I would use my credit card more. . . I would close my account No affect at all 26 18 I would use my debit/credit card. . . 10 13 I would take out larger amounts. . . 6 I would use my credit card more. . . 8 I would close my account 32 No affect at all Q. Do you have fee free banking with your current account at the moment? www. consumerhelp. ie 39 I would switch to a bank that. . . I would switch to a bank with. . . 8 I would take out larger amounts. . . Consequences of change to fee free banking structure (all with fee free banking – 271) Q 3 Nov 13 vs June 13 +5% +7% +10% +3% -3% = 8 15 -17% 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?
Current Account - Switching Behaviour 12 Switched current account in past 12 months (Base: All current account holders ) Switching current account in next 6 months (Base: All current account holders) Bank/Financial institution who offers current acc service Yes, I plan on switching Switched % Bank financial institution with current A/C service 2 2 4 4 7 1 % Yes, I have to bank is closing down Making Complaints 6 Nov-11 Jun-12 Nov-12 Jun-13 Most recent checking on alternative providers (Base: All current account holders) Past 12 months 18 More than 12 months but less than 3 years ago More than 3 years ago 14 92 No, I do not plan on switching Have never checked 10 57 Nov-13 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. www. consumerhelp. ie 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?
13 Research Background and Methodology Making Complaints www. consumerhelp. ie
A. Research Background and Methodology 14 Nov/Dec 2007 Benchmark June 2010 Wave 5 § § § Aug 2008 Nov/Dec 2008 May/June 2009 Wave 1 Wave 2 Wave 3 Nov/Dec 2010 May/June 2011 Wave 6 Complaints Wave 7 Making June 2012 Nov 2012 Wave 9 Wave 10 June 2013 Wave 11 Nov/Dec 2009 Wave 4 Nov 2011 Wave 8 Nov 2013 Wave 12 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 12 th – 21 st November 2013. www. consumerhelp. ie
Profile of Sample Base: All Adults 16+ 1, 008 15 Gender* % Age* % 16 -24 Male 15 Dublin 29 25 -34 49 Employment Status % Class* % Region* % ABC 1 40 Working full time 29 Working part time 12 Self-employed 6 21 Making Complaints Rest of Leinster 26 35 -49 28 Munster Female 51 50 -64 65+ www. consumerhelp. ie 27 C 2 DE 52 Unemployed 14 Home duties 16 Retired 16 21 15 Conn/ Ulster 18 F 7 Student 8
Profile of Sample Base: All Adults 16+ 1, 008 16 Access the Internet (All Adults) % Purchase Online (All Adults) % Bank Online (All Adults) % Yes Yes – at home Facebook 57 Twitter Linked. In Bebo No Yes – at work No access 11 19 www. consumerhelp. ie No 57 44 Making Complaints 80 Social Media Sites Used (All who access the internet – 820) % 43 13 6 2 56 None 40
- Slides: 16