Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Consumers and Retail Banking - UK - September 2016

“The traditional retail banking providers continue to retain a dominant share of the market, despite the threat posed by challenger banks and innovative FinTech firms. However, the implementation of Open Banking by 2018 poses another threat, by making it easier for consumers to identify where they could get better value elsewhere. This could lead to higher rates of switching, but is likely to have the biggest impact on providers themselves, which will be incentivised to improve their services in order to retain customers.”
– Jessica Galletley, Financial Services Analyst

This report discusses the following key topics:

  • Cross-selling in retail banking driven by customer inertia
  • Providers will need to find the right balance with personalised services 
  • Lack of interest in switching will hinder use of Open Banking

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
    • Executive Summary

        • The market
          • Open Banking will lead to improved services
            • Consumer borrowing continues to grow
              • Figure 1: Gross consumer credit and mortgage lending, 2009-15
            • Companies and brands
              • Barclays is the largest individual provider of current accounts
                • Figure 2: Main banking groups, by aggregated share of main current account market, July 2016
              • Branch closures continue
                • Adspend grows by 8% in 2016
                  • Figure 3: Top 15 highest spenders for recorded above-the-line, online display and direct mail advertising expenditure on retail banking, 2014-16*
                • The consumer
                  • Savings accounts are second most widely owned financial services product
                    • Figure 4: Financial product ownership and cross-sales, July 2016
                  • 72% interested in a more personalised service
                    • Figure 5: Interest in personalised banking services, July 2016
                  • Majority are satisfied with their bank
                    • Figure 6: Overall satisfaction with main banking provider, July 2016
                  • Online banking can only partially meet consumer needs
                    • Figure 7: Attitudes towards retail banking services, July 2016
                  • What we think
                  • Issues and Insights

                    • Cross-selling in retail banking driven by customer inertia
                      • The facts
                        • The implications
                          • Providers will need to find the right balance with personalised services
                            • The facts
                              • The implications
                                • Lack of interest in switching will hinder use of Open Banking
                                  • The facts
                                    • The implications
                                    • The Market – What You Need to Know

                                      • Open Banking will lead to improved services
                                        • Low interest rates continue to disengage savers
                                          • Borrower confidence boosted by rate cut
                                          • Market Overview

                                            • CMA announces package of reforms to increase competition
                                              • Technology and transparency underpin measures to improve competition
                                                • Number of CASS users continues to grow
                                                  • Consumer borrowing continues to grow
                                                    • Figure 8: Gross consumer credit and mortgage lending, 2009-15
                                                  • Low interest rates continue to disengage savers
                                                    • Figure 9: Savings account interest rates, January 2011-July 2016
                                                  • Mortgage and loan customers look forward to longer period of low rates
                                                    • Figure 10: Consumer credit interest rates, January 2011-July 2016
                                                • Companies and Brands – What You Need to Know

                                                  • Barclays is the largest individual provider of current accounts
                                                    • Branch closures continue
                                                      • Adspend grows by 8% in 2016
                                                      • Market Share

                                                        • Barclays is the largest individual provider of current accounts
                                                          • Figure 11: Current account providers, by share of main and other current account market, July 2016
                                                        • Lloyds Banking Group is biggest overall provider
                                                          • Figure 12: Top 6 main current account providers, by aggregated share of main current account market, July 2016
                                                        • Challengers pose a threat to future market share?
                                                        • Company Strategies

                                                          • Branch closures continue
                                                            • Lloyds Banking Group
                                                              • RBS
                                                                • Metro Bank and Nationwide remain committed
                                                                  • Embracing technology to transform consumer experiences
                                                                    • Barclays
                                                                      • Santander
                                                                        • Mobile-only banks make soft launch
                                                                          • Focusing on customer satisfaction
                                                                            • Nationwide
                                                                              • First Direct
                                                                              • Brand Communication and Promotion

                                                                                • Lloyds Bank is the biggest spender on retail banking advertising
                                                                                  • Figure 13: Top 15 highest spenders for recorded above-the-line, online display and direct mail advertising expenditure on retail banking, 2014-16*
                                                                                • TV claims ever-increasing share of adspend…
                                                                                  • …but digital spend is increasing
                                                                                    • Figure 14: Recorded above-the-line, online display and direct mail advertising expenditure on retail banking, by media type, 2014-16
                                                                                  • Nielsen Ad Intel coverage
                                                                                  • The Consumer – What You Need to Know

                                                                                    • Savings accounts are the most widely cross-sold products
                                                                                      • Majority are interested in personalised services
                                                                                        • Four in five are satisfied with their provider…
                                                                                          • …with the helpfulness of staff being a key driver
                                                                                            • Online banking can only partially meet consumer needs
                                                                                            • Product Ownership and Cross-sales

                                                                                              • Majority have one current account
                                                                                                • Figure 15: Current account ownership, July 2016
                                                                                              • Savings accounts are second most widely owned product
                                                                                                • Figure 16: Financial product ownership and cross-sales, July 2016
                                                                                              • Customers are less loyal when it comes to credit cards
                                                                                                • People more likely to look elsewhere for insurance
                                                                                                  • Banks face further cross-selling challenges
                                                                                                    • Figure 17: Repertoire of financial products, July 2016
                                                                                                  • Barclays, Halifax and Nationwide are best at cross-selling
                                                                                                    • Figure 18: Repertoire of financial products with main provider, by selected providers, July 2016
                                                                                                • Interest in Personalised Banking Services

                                                                                                  • 72% interested in a more personalised service
                                                                                                      • Figure 19: Interest in personalised banking services, July 2016
                                                                                                    • Generational differences highlight higher expectations among younger consumers
                                                                                                      • Figure 20: Interest in personalised banking services, by age, July 2016
                                                                                                  • Overall Satisfaction with Main Provider

                                                                                                    • Four in five are satisfied with their provider
                                                                                                      • Figure 21: Overall satisfaction with main banking provider, July 2016
                                                                                                    • Nationwide has highest levels of customer satisfaction
                                                                                                      • Figure 22: Overall satisfaction with main banking provider, July 2016
                                                                                                  • Satisfaction with Retail Banking Services

                                                                                                    • Consumers most satisfied with helpfulness of staff
                                                                                                      • Figure 23: Satisfaction with retail banking services, July 2016
                                                                                                    • Rewarding loyalty pays off
                                                                                                      • Figure 24: Satisfaction with rewards for loyalty, by number of financial products with main current account provider, July 2016
                                                                                                    • Nationwide stands out for the helpfulness of its staff
                                                                                                      • Figure 25: Satisfaction with retail banking services, by main current account provider, July 2016
                                                                                                    • Staff are key to overall satisfaction
                                                                                                      • Figure 26: Key drivers of overall satisfaction with main current account provider, July 2016
                                                                                                      • Figure 27: Overall satisfaction with main current account provider – Key driver output, July 2016
                                                                                                  • Attitudes towards Retail Banking Services

                                                                                                    • Online banking can only partially meet consumer needs
                                                                                                        • Figure 28: Attitudes towards retail banking services, July 2016
                                                                                                      • Cross-selling opportunities greatest among 16-34-year-olds
                                                                                                        • Online-only banks pose a significant threat
                                                                                                          • The reality of an online-only bank is less attractive as finances become more complex
                                                                                                            • Figure 29: Consideration of banks that only offer online and mobile services, by age, July 2016
                                                                                                          • Only one in 10 happy to share their account transaction data
                                                                                                            • Attitudes towards Midata show barriers and appetite for Open Banking
                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                • Abbreviations
                                                                                                                  • Consumer research methodology
                                                                                                                  • Appendix – Banking Channels – Frequency of Use

                                                                                                                      • Figure 30: Frequency of banking services use, July 2016

                                                                                                                  Companies Covered

                                                                                                                  To learn more about the companies covered in this report please contact us.

                                                                                                                  Consumers and Retail Banking - UK - September 2016

                                                                                                                  £2,195.00 (Excl.Tax)