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 Banking - Ireland - October 2011

Online banking is now firmly established as a mainstream channel within financial services. Around a third of all Irish consumers use online banking services with some degree of regularity, while around a fifth use online banking once a week or more often.

However, it remains the case that consumers primarily use online banking for simple, straightforward transactions – checking balances, viewing statements, paying bills and transferring money. Similarly, there is an increasing appetite among Irish consumers for purchasing financial products online, but these purchases tend to be confined to non-complex, commoditised financial products such as holiday and travel insurance.

This report assesses Irish consumers' use of online banking service. It looks at the particular demographics that are most inclined to use online banking, how often they use it, the sort of activities they perform online and the type of financial products purchased online. It also examines developments in the area of online banking, and the factors contributing to and obstructing its further growth.

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 the Market

      • Key themes
        • Definitions
          • Data sources
            • Abbreviations
            • Insights and Opportunities

              • Consumers not yet ready to 'go it alone online'
                • Encouraging consumers to expand their online activity
                • Market in Brief

                  • Economic travails persist across Ireland
                    • Branch networks retain relevance for consumers
                      • Most consumers want an 'understanding' bank
                        • Increasing multiple account ownership among consumers
                          • Online banking-related fraud losses declining, but threats remain
                            • Internet penetration and usage continuing to grow
                              • Continued growth in online banking users and use
                                • A third use online services, while two thirds use branches
                                  • Simple 'transactions' most commonly engaged in online
                                    • Most common online purchase: travel insurance
                                    • Fast Forward Trends

                                        • Trend 1: Agelessness
                                          • What’s it about?
                                            • What we’ve seen
                                              • What next?
                                                • Trend 2: Make it Mine
                                                  • What’s it about?
                                                    • What we’ve seen
                                                      • What next?
                                                      • Internal Market Environment

                                                        • Key points
                                                          • Branch network remains key to attracting customers
                                                            • Figure 1: Most important factors when choosing a bank for a current account, RoI and NI, 2011
                                                          • Branch network increasing in importance during economic crisis...
                                                            • Figure 2: Consumers who consider 'Locality' to be an important factor when choosing a bank for a current account, RoI and NI, 2007-11
                                                          • ...while online facilities remain static as an important consideration
                                                            • Figure 3: Consumers who consider 'Telephone/internet banking facilities' to be an important factor when choosing a bank for a current account, RoI and NI, 2007-11
                                                          • Majority of consumers want a 'relationship' with their bank
                                                            • Figure 4: Agreement with statement 'It is important that my bank understands my individual needs', by age, RoI and NI, 2011
                                                          • Transacting online suits modern lifestyles
                                                            • Figure 5: Agreement with statement 'There are not enough hours in the day to do everything I would like’, RoI and NI, 2007-11
                                                          • Consumers' portfolios of products becoming more complex
                                                            • Figure 6: Number of current and savings accounts held, RoI, 2010 and 2011
                                                            • Figure 7: Number of current and savings accounts held, NI, 2010 and 2011
                                                          • Fraud losses down 22% in UK, but risks remain
                                                            • Figure 8: Online banking fraud losses, UK (incl. NI), 2004-10
                                                            • Figure 9: Number of phishing websites targeting UK (incl. NI) banks and building societies, 2005-10
                                                          • Most consumers confident in ability to protect themselves online
                                                            • Figure 10: Percentage of consumers who claim to be capable of data protection and virus control online, by age, RoI, 2011
                                                          • Need for balance between security and convenience
                                                          • Broader Market Environment

                                                            • Key points
                                                              • Both Irish economies still in difficulty
                                                                • Figure 11: GDP growth, actual and forecast, UK, NI and RoI, 2009-12
                                                              • NI
                                                                • RoI
                                                                  • Unemployment unlikely to improve in immediate future
                                                                    • NI
                                                                      • Figure 12: Employment and claimant count numbers, actual, estimated and forecast, NI, 2009-12
                                                                    • RoI
                                                                      • Figure 13: Employment, labour force and unemployment, RoI, actual, estimated and forecast, RoI, 2010-12
                                                                    • Consumers' incomes suffering, spending in decline
                                                                      • NI
                                                                        • Figure 14: Median gross weekly pay, NI, 2005-10
                                                                      • RoI
                                                                        • Figure 15: Median gross weekly earnings, RoI, 2006-11
                                                                      • Consumer confidence – up in RoI, on the floor in UK (including NI)
                                                                        • RoI
                                                                          • UK (including NI)
                                                                            • Interest rates offer little excitement to savers
                                                                            • Competitive Context

                                                                              • Key points
                                                                                • Decline in cheque usage to increase online transactions
                                                                                  • Figure 16: Cheque usage, any frequency, NI and RoI, 2009 and 2011
                                                                                  • Figure 17: Frequency of cheque usage, NI and RoI, 2011
                                                                                • Death of the cheque on the horizon
                                                                                  • Irish consumers using cash for fewer payments
                                                                                    • Figure 18: Agreement with the statement ‘I like to pay cash for everything I buy’, NI and RoI, 2007-11
                                                                                • Internet Access and Usage

                                                                                  • Key points
                                                                                    • Domestic internet connections continuing to grow
                                                                                      • Figure 19: Consumers who have an internet connection (broadband or dial-up) at home, NI and RoI, 2004-11
                                                                                    • Majority of consumers are internet users
                                                                                      • Figure 20: Used the internet in the last 12 months, NI and RoI, 2007-11
                                                                                    • Young consumers key target for online banking
                                                                                      • Figure 21: Consumers who have used the internet in the last 12 months, by age, NI and RoI, 2011
                                                                                    • Half of all consumers are 'very regular' internet users
                                                                                      • Figure 22: How often consumers access the internet, NI and RoI, 2011
                                                                                    • Internet access key to daily Irish lives
                                                                                      • Figure 23: Agreement with selected internet-related statements, NI and RoI, 2011
                                                                                      • Figure 24: Consumers who have shopped online in the last 12 months and who have never shopped online, RoI, 2007-11
                                                                                    • Going online via mobile phone increasingly popular...
                                                                                      • Figure 25: Means used to access internet, NI and RoI, 2011
                                                                                    • ...creating potential demand for mobile banking services
                                                                                    • Strengths and Weaknesses

                                                                                      • Strengths
                                                                                        • Weaknesses
                                                                                        • Companies and Products

                                                                                            • Figure 26: Profiled banks, 2011
                                                                                          • AIB
                                                                                            • Bank of Ireland
                                                                                              • First Trust Bank
                                                                                                • HSBC
                                                                                                  • National Irish Bank
                                                                                                    • Northern Bank
                                                                                                      • Permanent TSB
                                                                                                        • RaboDirect
                                                                                                          • Santander
                                                                                                            • Ulster Bank
                                                                                                            • Use and Volume of Online Banking Services (RoI)

                                                                                                              • Key points
                                                                                                                • Three million registered online banking users in RoI
                                                                                                                  • Figure 27: Number of consumers registered for online banking services, RoI, Q1 2007-Q2 2011
                                                                                                                • Over 100,000 new registrations per quarter over last two years
                                                                                                                  • Figure 28: Number of new registrations for online banking services per quarter, RoI, Q2 2009-Q2 2011
                                                                                                                • Accounts accessed online more than 40 million times in Q2 2011
                                                                                                                  • Figure 29: Number of times accounts accessed online, Q2 2009-Q2 2011
                                                                                                                  • Figure 30: Average number of times accounts accessed online per registered user per quarter, RoI, Q1 2007-Q2 2011
                                                                                                                • 11.5 million payments through online banking services during Q2 2011
                                                                                                                  • Figure 31: Number of payments/transfers through online banking services, RoI, Q1 2007-Q2 2011
                                                                                                                  • Figure 32: Number of payments/transfers through online banking services per registered user, Q2 2007-Q2 2011
                                                                                                                  • Figure 33: Payments made through online banking services, by payment type, RoI, Q2 2011
                                                                                                              • The Consumer – Frequency of Channel Usage

                                                                                                                • Key points
                                                                                                                  • More than a third use online banking services
                                                                                                                    • Figure 34: Consumers who use various banking channels with any frequency, NI and RoI, 2011
                                                                                                                  • A fifth bank online once a week or more often
                                                                                                                      • Figure 35: Consumers who use various banking channels once a week or more often, NI and RoI, 2011
                                                                                                                    • Online banking users tend to be 'regular' users
                                                                                                                        • Figure 36: Frequency of online banking use, RoI and NI, 2011
                                                                                                                        • Figure 37: Frequency of branch banking use, RoI and NI, 2011
                                                                                                                      • ABC1s and 25-34s use online banking most frequently
                                                                                                                          • Figure 38: Consumers who use online banking once a week or more often, by age and socio-economic background, RoI and NI, 2011
                                                                                                                        • C2DEs and 35-54s use branch banking most frequently
                                                                                                                            • Figure 39: Consumers who use branch banking once a week or more often, by age and socio-economic background, RoI and NI, 2011
                                                                                                                        • The Consumer – Usage of Online Banking

                                                                                                                          • Key points
                                                                                                                            • Simple activities remain the most popular
                                                                                                                                • Figure 40: Services carried out with online banking facility, RoI and NI, 2011
                                                                                                                              • Significant growth in numbers engaging in 'core' activities online
                                                                                                                                • Figure 41: Participation in core online banking activities, NI and RoI, 2006 and 2011
                                                                                                                              • Clear socio-economic divide in online banking usage
                                                                                                                                  • Figure 42: Consumers who engage in selected online banking activities, by socio-economic background, RoI, 2011
                                                                                                                                  • Figure 43: Consumers who engage in selected online banking activities, by socio-economic background, NI, 2011
                                                                                                                                • Working status strongly impacts usage
                                                                                                                                    • Figure 44: Consumers who engage in selected online banking activities, by working status, RoI, 2011
                                                                                                                                    • Figure 45: Consumers who engage in selected online banking activities, by working status, NI, 2011
                                                                                                                                  • Consumers aged 25-34 most inclined to bank online, over-65s least
                                                                                                                                      • Figure 46: Consumers who engage in selected online banking activities, highest and lowest, by age, RoI, 2011
                                                                                                                                      • Figure 47: Consumers who engage in selected online banking activities, highest and lowest, by age, NI, 2011
                                                                                                                                  • The Consumer – Financial Products Purchased Online

                                                                                                                                    • Key points
                                                                                                                                      • Holiday and travel insurance most likely purchased or arranged online
                                                                                                                                        • Figure 48: Types of financial products arranged/bought online, RoI and NI, 2011
                                                                                                                                      • Commoditisation makes credit cards online-friendly
                                                                                                                                        • Mortgages and loans too complex for online purchasing
                                                                                                                                          • Older profile to online travel insurance purchasers
                                                                                                                                              • Figure 49: Consumers who have arranged/purchased holiday and travel insurance online, by age, NI and RoI, 2011
                                                                                                                                            • Few have arranged or purchased car insurance online
                                                                                                                                                • Figure 50: Consumers who have purchased car insurance (main car) online, by gender and age, NI and RoI, 2011
                                                                                                                                            • Appendix

                                                                                                                                              • NI and RoI internet TGI
                                                                                                                                                • Figure 51: Consumers who have used the internet in the last 12 months, by demographics, NI and RoI, 2011
                                                                                                                                                • Figure 52: Consumers who have a mobile broadband subscription, by demographics, NI and RoI, 2011
                                                                                                                                                • Figure 53: How often consumers access the internet, NI and RoI, 2011
                                                                                                                                                • Figure 54: How much time consumers spend on the internet per week, NI and RoI, 2011
                                                                                                                                                • Figure 55: Where consumers access the internet, NI and RoI, 2011
                                                                                                                                                • Figure 56: How consumers access the internet, NI and RoI, 2011
                                                                                                                                                • Figure 57: Type of internet connection (at home), NI and RoI, 2011
                                                                                                                                              • NI online banking TGI
                                                                                                                                                • Figure 58: Frequency of online banking, by demographics, NI, 2011
                                                                                                                                                • Figure 59: Frequency of telephone banking, by demographics, NI, 2011
                                                                                                                                                • Figure 60: Frequency of branch banking, by demographics, NI, 2011
                                                                                                                                                • Figure 61: Frequency of ATM banking (for services other than cash withdrawal), by demographics, NI, 2011
                                                                                                                                                • Figure 62: Frequency of postal banking, by demographics, NI, 2011
                                                                                                                                              • What online banking is used for
                                                                                                                                                • Figure 63: Services carried out with online banking, by demographics, NI, 2011
                                                                                                                                              • Types of financial products arranged/bought online
                                                                                                                                                • Figure 64: Types of financial products arranged/bought online, by demographics, NI, 2011
                                                                                                                                              • NI internet statements
                                                                                                                                                • Figure 65: Agreement with statements relating to the internet and mobile phones, by demographics, NI, 2011
                                                                                                                                              • RoI online banking TGI
                                                                                                                                                • Figure 66: Frequency of online banking, by demographics, RoI, 2011
                                                                                                                                                • Figure 67: Frequency of telephone banking, by demographics, RoI, 2011
                                                                                                                                                • Figure 68: Frequency of branch banking, by demographics, RoI, 2011
                                                                                                                                                • Figure 69: Frequency of ATM banking (for services other than cash withdrawal), by demographics, RoI, 2011
                                                                                                                                                • Figure 70: Frequency of postal banking, by demographics, RoI, 2011
                                                                                                                                              • What online banking is used for
                                                                                                                                                • Figure 71: Services carried out with online banking, by demographics, RoI, 2011
                                                                                                                                                • Figure 72: Services carried out with online banking (continued), by demographics, RoI, 2011
                                                                                                                                              • Types of financial products arranged/bought online
                                                                                                                                                • Figure 73: Types of financial products arranged/bought online, by demographics, RoI, 2011
                                                                                                                                              • RoI internet statements
                                                                                                                                                • Figure 74: Agreement with statements relating to the internet and mobile phones, by demographics, RoI, 2011

                                                                                                                                            Companies Covered

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

                                                                                                                                            Online Banking - Ireland - October 2011

                                                                                                                                            £1,095.00 (Excl.Tax)