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

Online and Mobile Banking - Ireland - September 2012

Although online banking is now the most frequently used retail banking channel by Irish consumers (though not the most widely used, a position that branches still hold), other personal finance-related technological initiatives have not yet captured consumers' imagination or enthusiasm to anything like the same extent. Mintel's consumer data show that 60% of RoI and 50% of NI consumers do almost all of their banking online nowadays. When it comes to relatively straightforward banking activities (such as checking balances, transferring funds and paying bills), online banking platforms are the first port of call for most internet users.

The other main tech-enabled developments – mobile banking and contactless cards – are still in their emergent phase. Even though smartphone ownership now exceeds 50% throughout Ireland (and continues to grow), around three quarters of internet users never use mobile banking, while only a very small minority use it on a regular basis. There is even less interest among consumers in contactless payment card technology: only 18% of RoI and 15% of NI internet users claim to be interested in using contactless payment cards. Although this is partly due to concerns over security, the biggest obstacle may be convincing consumers that this payment method offers real benefits to them.

Some questions answered in this report include:

  • Impact of environmental factors – How are internal market and broader market environmental factors impacting upon consumers' current and future use of the online banking and mobile banking? These factors include internet usage and access, smartphone ownership, general experience with technology and the internet, economic difficulties and consumer confidence.
  • Alternatives to tech-enabled payments – What are the main alternatives to technology-enabled or electronic payment methods?
  • Preferred channels and means of accessing accounts – What channels and means of access are Irish consumers using on a regular and frequent basis?
  • Attitudes towards online banking – To what extent do consumers recognise and value the benefits of online banking? Are consumers confident about the security of online banking? Are consumers sufficiently comfortable with online banking that they would be willing to use an online-only bank?
  • Attitudes towards mobile banking – Do consumers recognise the benefits that mobile banking could provide them with? How confident are Irish consumers in the security of mobile banking? How aware are consumers of the availability of mobile banking apps?
  • Attitudes towards contactless cards – Are consumers concerned about the security of contactless payment technology? Do consumers regard contactless cards as being much more convenient than current payment methods? How interested are consumers in using this technology?

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. Issues in Market

      • Key themes
        • Definition
          • Data sources
            • Consumer data
              • Abbreviations
              • Trend Application

                • Open Diary
                  • Objectify
                    • 2015 Trend: Access Anything, Anywhere
                    • Market in Brief

                      • Economic improvement in sight, but challenges remain
                        • Consumer confidence remains low among both sets of consumers
                          • More consumers use and have access to the internet
                            • Positive attitudes towards technology and the internet
                              • Branches still have strong importance for consumers
                                • Irish consumers are still using cheques (but not that much)
                                  • Using cash as means of payment still popular among consumers
                                    • More consumers registered for online banking, but activity down
                                      • Branches and ATMs most widely used channels to access accounts
                                        • Consumers have generally positive attitudes towards online banking
                                          • Consumers not yet convinced about contactless payments technology
                                            • No real enthusiasm among consumers for mobile banking
                                              • Around a tenth of consumers are enthusiastic followers of technology
                                              • Internal Market Environment

                                                • Key points
                                                  • Internet access and usage continuing to grow among Irish consumers
                                                    • Figure 1: Consumers who have accessed the internet in the last 12 months, RoI and NI, 2004-11
                                                    • Figure 2: Consumers who have an internet connection (broadband or dial-up) at home, NI and RoI, 2004-11
                                                  • Smartphone ownership now exceeds 50% of all Irish consumers
                                                    • Figure 3: Ownership of smartphones and standard mobile phones, RoI and NI, July 2012
                                                    • Figure 4: Consumers who intend to buy a smartphone vs. standard mobile phone in the next 12 months, RoI and NI, July 2012
                                                  • Almost a fifth of consumers access internet via mobile phone
                                                    • Figure 5: Means used to access the internet, NI and RoI, 2011
                                                  • Irish consumers keen on the internet and technology…
                                                    • Figure 6: Agreement with statements relating to positive impact of the internet and technology, RoI and NI, July 2012
                                                  • ...but concerns about security prominent in consumers' minds
                                                    • Figure 7: Agreement with statement 'I worry my personal details are at risk of exposure’ (as part of negative impact of technology and internet), by age, RoI and NI, July 2012
                                                  • Security poses a 'balancing act' challenge for financial services providers
                                                    • Summer 2012 IT meltdown could provoke consumer rethink
                                                      • Irish consumers still have certain attachment to branches…
                                                        • Figure 8: Consumers who cite locality and telephone/internet banking facilities as important considerations when choosing a current account provider, NI and RoI, 2011
                                                      • ...but branch closures removing the option for some…
                                                        • ...while many banks are downsizing portfolio of services at branches
                                                          • Major retailers starting to accept contactless payments
                                                            • Online banking fraud losses down 24% in 2011
                                                              • Figure 9: Online banking fraud losses, £ million, UK (including NI), 2004-11
                                                          • Broader Market Environment

                                                            • Key points
                                                              • Irish economies on course for improvement – but challenges remain
                                                                • Figure 10: Economic outlook, actual, estimated and forecast, RoI and NI, 2010-13
                                                              • Confidence up among NI consumers, down among RoI consumers
                                                                • NI
                                                                  • Figure 11: Consumer confidence, NI, June 2009-June 2012
                                                                • RoI
                                                                  • Figure 12: Consumer sentiment index, RoI, October 2011-September 2012
                                                                • Interest rates conspiring against savers (but benefiting borrowers)
                                                                  • RoI consumers unexcited by interest rates offered on savings
                                                                    • Figure 13: Agreement with statements relating to current savings environment, RoI, September 2011 and September 2012
                                                                    • Figure 14: Consumers' intended use for surplus funds, RoI, October 2011-September 2012
                                                                • Competitive Context

                                                                  • Key points
                                                                    • Cheques still being used – but very infrequently
                                                                      • Figure 15: Frequency of cheque usage, NI and RoI, 2011
                                                                    • Volume and value of cheque transactions in steep decline
                                                                      • Figure 16: Cheque clearing volume, millions, UK (incl. NI), 2006-12
                                                                      • Figure 17: Cheque clearing value, £ billions, UK (incl. NI), 2006-12
                                                                      • Figure 18: Volume of cheques and other paper debit instruments, millions, RoI, 2004-11
                                                                      • Figure 19: Value of cheques and other paper debit instruments, € millions, RoI, 2004-11
                                                                    • Transacting in cash remains popular with Irish consumers
                                                                      • Figure 20: Agreement with the statement 'I like to pay cash for everything I buy', NI and RoI, 2007-11
                                                                      • Figure 21: Value of cash withdrawals via ATMs, RoI and UK (incl. NI), 2006-11
                                                                  • Strengths and Weaknesses

                                                                    • Strengths
                                                                      • Weaknesses
                                                                      • Who’s Innovating?

                                                                        • Key points
                                                                          • Mobile payments to become a mainstream option
                                                                            • Ability to withdraw cash from ATMs without a card
                                                                              • Will Irish consumers be banking soon through Facebook?
                                                                              • The Consumer – Online Banking Use and Volume

                                                                                • Key points
                                                                                  • Number of registered users of online banking continuing to grow…
                                                                                      • Figure 22: Consumers registered for online banking, RoI, Q1 2007-Q2 2012
                                                                                      • Figure 23: Number of new registrations for online banking per quarter, RoI, Q1 2007-Q2 2012
                                                                                    • ...but only around 60% of registered users are active users
                                                                                      • Accounts accessed online more than 45 million times in Q2 2012
                                                                                          • Figure 24: Number of times accounts accessed online, millions, RoI, Q2 2009-Q2 2012
                                                                                          • Figure 25: Average number of times accounts accessed online by each active user per quarter, RoI, Q1 2010-Q2 2012
                                                                                        • 11.2 million payments through online banking services in Q2 2012
                                                                                            • Figure 26: Number of payments/money transfers made through online banking services, millions, RoI, Q2 2009-Q2 2012
                                                                                            • Figure 27: Average number of payments/money transfers made through online banking services by each active user, RoI, Q1 2010-Q2 2012
                                                                                          • The majority of payments online are domestic payments
                                                                                            • Figure 28: Payments/money transfers made online, by type, RoI, Q2 2012
                                                                                        • The Consumer – Means Used to Access Accounts

                                                                                          • Key points
                                                                                            • Branches and ATMs still the most widely used channels
                                                                                                • Figure 29: Means used by consumers to access their current accounts, any regularity, RoI and NI, July 2012
                                                                                              • ATMs and online platforms most frequently used channels
                                                                                                • Around a fifth access accounts through online channel every day
                                                                                                  • Figure 30: How often consumers access their current accounts through different channels and means, RoI and NI, July 2012
                                                                                                • Around six in ten consumers access accounts online at least once a week
                                                                                                    • Figure 31: Channels and means used by consumers to access their current account either daily or at least once a week, RoI and NI, July 2012
                                                                                                  • Branches frequented most often by 45-54s and C2DEFs...
                                                                                                      • Figure 32: Consumers who access their current accounts via a branch at least once a week, by age and socio-economic background, RoI and NI, July 2012
                                                                                                    • ...while online platforms used most frequently by 25-34s and ABC1s
                                                                                                        • Figure 33: Consumers who access their current accounts via a laptop or PC at least once a week, by age and socio-economic background, RoI and NI, July 2012
                                                                                                      • Mobile banking still a niche activity – most popular among the young
                                                                                                          • Figure 34: Consumers who access their current accounts via a smartphone at least once a week, by age and socio-economic background, RoI and NI, July 2012
                                                                                                      • The Consumer – What's Online Banking Used For?

                                                                                                        • Key points
                                                                                                          • Straightforward transactions most common online
                                                                                                              • Figure 35: Activities conducted through online banking platforms, NI and RoI, 2011
                                                                                                            • Consumers use branches to arrange loans and get advice
                                                                                                                • Figure 36: Activities conducted through branches, NI and RoI, 2011
                                                                                                              • ATMs, telephone and postal services used only for basic transactions
                                                                                                                  • Figure 37: Activities conducted through ATMs (other than cash withdrawals), NI and RoI, 2011
                                                                                                                  • Figure 38: Activities conducted through telephone banking services, NI and RoI, 2011
                                                                                                                  • Figure 39: Activities conducted through postal banking services, NI and RoI, 2011
                                                                                                              • The Consumer – Attitudes towards Online Banking

                                                                                                                • Key points
                                                                                                                  • Positive overall attitude towards online banking – but some reservations
                                                                                                                      • Figure 40: Agreement with statements relating to online banking, RoI and NI, July 2012
                                                                                                                    • Working consumers most likely to value online banking's convenience
                                                                                                                        • Figure 41: Agreement with statement 'Online banking makes managing my personal finances easier and less time-consuming', by work status, RoI and NI, July 2012
                                                                                                                      • Consumers aged 25-44 most inclined to do 'almost all' banking online
                                                                                                                          • Figure 42: Agreement with statement 'I do almost all my banking online nowadays', by age, RoI and NI, July 2012
                                                                                                                        • Concerns over the security of online banking remain
                                                                                                                            • Figure 43: Agreement with statement 'Online banking is totally secure', by daily internet usage, RoI and NI, July 2012
                                                                                                                          • An offline option remains important for most consumers
                                                                                                                              • Figure 44: Agreement with statement 'I am happy to use a provider who can only be accessed online/over the phone', by age and socio-economic background, RoI and NI, July 2012
                                                                                                                          • The Consumer – Attitudes towards Contactless Payments

                                                                                                                            • Key points
                                                                                                                              • Consumers don't seem overly interested in contactless payments
                                                                                                                                  • Figure 45: Agreement with statements relating to contactless payments, RoI and NI, July 2012
                                                                                                                                • Some doubts about security of contactless cards
                                                                                                                                    • Figure 46: Agreement with statement 'Chip and PIN technology is more secure than contactless cards', by age, RoI and NI, July 2012
                                                                                                                                  • Around a fifth object to being issued a contactless card by default
                                                                                                                                      • Figure 47: Agreement with statement 'Banks should only issue contactless cards when customers specifically request them', by gender and socio-economic background, RoI and NI, July 2012
                                                                                                                                    • Less than a fifth see any added convenience to contactless cards
                                                                                                                                        • Figure 48: Agreement with statement 'Paying for items using contactless technology is convenient', by age, RoI and NI, July 2012
                                                                                                                                      • No great interest among consumers in contactless cards
                                                                                                                                        • No real desire to see more retailers enter the fray
                                                                                                                                        • The Consumer – Attitudes towards Mobile Banking

                                                                                                                                          • Key points
                                                                                                                                            • Distinctly underwhelming enthusiasm for mobile banking
                                                                                                                                                • Figure 49: Agreement with statements relating to mobile banking, RoI and NI, July 2012
                                                                                                                                              • Younger consumers most open to benefits of mobile banking…
                                                                                                                                                  • Figure 50: Agreement with statement 'Being able to manage my finances on the go would make my life easier', by age, RoI and NI, July 2012
                                                                                                                                                • ...while older consumers see mobile banking as unnecessary
                                                                                                                                                    • Figure 51: Agreement with statement 'I don't really see the need for mobile banking', by age, RoI and NI, July 2012
                                                                                                                                                  • Security of mobile banking concerns all demographics
                                                                                                                                                    • Awareness of available apps depends on internet usage
                                                                                                                                                        • Figure 52: Agreement with statement 'My bank has provided me with an app that makes mobile banking easier', by daily internet usage, RoI and NI, July 2012
                                                                                                                                                    • Consumer Typologies

                                                                                                                                                      • NI
                                                                                                                                                        • Figure 53: Consumer typologies, NI, July 2012
                                                                                                                                                      • Sceptical Technophobes
                                                                                                                                                        • Conservative Onliners
                                                                                                                                                          • Guarded Enthusiasts
                                                                                                                                                            • Early Adopters
                                                                                                                                                              • RoI
                                                                                                                                                                • Figure 54: Consumer typologies, RoI, July 2012
                                                                                                                                                              • Tentative Onliners
                                                                                                                                                                • Mistrustful Offliners
                                                                                                                                                                  • Committed Technophiles
                                                                                                                                                                    • Security-Concerned Onliners
                                                                                                                                                                    • Appendix

                                                                                                                                                                      • RoI Toluna data
                                                                                                                                                                        • Figure 55: How often consumers use a PC/laptop to access their current account, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 56: How often consumers use a smartphone (ie iPhone) to access their current account, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 57: How often consumers use telephone banking services to access their current account, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 58: How often consumers use text-based banking to access their current account, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 59: How often consumers use postal banking to access their current account, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 60: How often consumers use an ATM to access their current account, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 61: How often consumers visit a bank branch to access their current account, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 62: Agreement with statements relating to online and mobile banking, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 63: Agreement with statements relating to online and mobile banking, by demographics, RoI, July 2012 (continued)
                                                                                                                                                                        • Figure 64: Agreement with statements relating to online and mobile banking, by demographics, RoI, July 2012 (continued)
                                                                                                                                                                        • Figure 65: Consumer typologies, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 66: Agreement with statements relating to online and mobile banking, by consumer typologies, RoI, July 2012
                                                                                                                                                                      • NI Toluna data
                                                                                                                                                                        • Figure 67: How often consumers use a PC/laptop to access their current account, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 68: How often consumers use a smartphone (ie iPhone) to access their current account, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 69: How often consumers use telephone banking services to access their current account, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 70: How often consumers use text-based banking to access their current account, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 71: How often consumers use postal banking to access their current account, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 72: How often consumers use an ATM to access their current account, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 73: How often consumers visit a bank branch to access their current account, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 74: Agreement with statements relating to online and mobile banking, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 75: Agreement with statements relating to online and mobile banking, by demographics, NI, July 2012 (continued)
                                                                                                                                                                        • Figure 76: Agreement with statements relating to online and mobile banking, by demographics, NI, July 2012 (continued)
                                                                                                                                                                        • Figure 77: Consumer typologies, by demographics, NI, July 2012
                                                                                                                                                                        • Figure 78: Agreement with statements relating to online and mobile banking, by consumer typologies, NI, July 2012
                                                                                                                                                                      • TGI data on factors influencing choice of provider
                                                                                                                                                                        • Figure 79: Most important factor influencing the choice of bank/building society for current account, by demographics, NI, 2011
                                                                                                                                                                        • Figure 80: Most important factor influencing the choice of bank/building society for current account, by demographics, NI, 2011
                                                                                                                                                                        • Figure 81: Most important factor influencing the choice of bank/building society for current account, by demographics, NI, 2011
                                                                                                                                                                        • Figure 82: Most important factor influencing choice of bank/building society, by demographics, RoI, 2011
                                                                                                                                                                        • Figure 83: Most important factor influencing choice of bank/building society for current account, by demographics, RoI, 2011
                                                                                                                                                                        • Figure 84: Most important factor influencing choice of bank/building society for current account, by demographics, RoI, 2011
                                                                                                                                                                      • Data on smartphone/standard mobile phone ownership
                                                                                                                                                                        • Figure 85: Consumer ownership of standard mobile phone, by demographics, RoI, July 2012
                                                                                                                                                                        • Figure 86: Consumer ownership of smartphone (eg iPhone, HTC, BlackBerry etc), by demographics, RoI, July 2012

                                                                                                                                                                    Online and Mobile Banking - Ireland - September 2012

                                                                                                                                                                    US $1,453.83 (Excl.Tax)