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Online & Mobile Banking - Ireland - August 2017

“From tentative beginnings, online banking has established itself as the dominant and preferred channel for Irish consumers. With consumers living their lives increasingly online, it is only natural that this is extended to how they manage accounts and interact with their financial services providers.”
– James Wilson, Research Analyst

Issues covered in this Report

  • This Report examines Irish consumers’ preferred channels and methods of accessing their bank accounts. It also looks at the devices used by consumers to access their accounts online, as well as the different banking activities conducted via the different channels and via different devices. Attitudes towards online and mobile banking are also examined.

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Table of contents

  1. Overview

    • What you need to know
      • Issues covered in this Report
      • Executive Summary

          • Market factors
            • Increasing use of online banking among Irish consumers
              • More consumers online, more consumers using smartphones
                • Use of cash remaining steady, while cheque usage declining
                  • Cheque usage continuing to decline in NI and RoI
                    • The consumer
                      • The internet is now the primary channel for managing accounts
                        • Figure 1: Channels consumers use to access their current account and how often they typically use them, RoI and NI, April 2017
                      • Online banking users not entirely convinced about apps over websites
                        • Figure 2: Consumer preference on how to access their bank account via devices, RoI and NI, April 2017
                      • Day-to-day banking activities being conducted via digital channels
                        • Figure 3: Types of banking activities undertaken, by channel, RoI and NI, April 2017
                      • Safety and security a major issue for consumers
                        • Figure 4: Agreement with statements related to online banking, NI and RoI, April 2017
                      • What it means
                      • The Market – What You Need to Know

                        • Increasing use of online banking among Irish consumers
                          • More consumers online, more consumers using smartphones
                            • Use of cash remaining steady, while cheque usage declining
                              • Cheque usage continuing to decline in NI and RoI
                              • Market Drivers

                                • Online banking use continuing to grow in NI and RoI
                                  • Figure 5: Online banking penetration, UK (including NI) and RoI, 2005-16
                                • Vast majority of Irish households have internet connection at home
                                  • Figure 6: Households with internet access, RoI and NI, 2010-17
                                • UK (including NI) losses from online fraud down 24% in 2016
                                  • Figure 7: Online banking fraud losses, £m, UK (including NI), 2010-16
                                  • Figure 8: Online banking fraud losses, number of cases, UK (including NI), 2012-16
                                • Majority own a smartphone, boding well for mobile banking
                                  • Figure 9: Ownership of or access to mobile technology devices, NI and RoI, April 2017
                                • Cash usage stable in UK (including NI) and RoI in recent years
                                  • Figure 10: ATM cash withdrawals, value, € billion, RoI, 2005-14
                                  • Figure 11: ATM cash withdrawals, volume, millions, RoI, 2006-14
                                  • Figure 12: ATM cash withdrawals, value, £ billions, UK (including NI), 2010-16
                                • Value and volume of cheque payments in steady decline in NI and RoI
                                  • Figure 13: Number of cheques cashed in the UK (including NI), actual and forecast, 1990-2025
                                  • Figure 14: Cheque payments, volume, millions, RoI, 2006-14
                                  • Figure 15: Cheque payments, value, € billions, RoI, 2006-14
                              • Companies and Brands – What You Need to Know

                                • Payment Service Directive II (PSD2) set to be transposed into EU law in 2018
                                  • Competition and Markets Authority (CMA) echoes EU directive to UK banks
                                    • Large banks in Ireland beginning preparations for cashless future
                                    • Who’s Innovating

                                      • Challenger bank Monzo starts to offer current accounts
                                        • TSB becomes first bank to introduce iris-scanning technology for mobile app access
                                          • Clarity Money aims to bring transparency to consumer finances
                                            • CashDash ATMs allow people to retrieve cash using their smartphone, bypassing debit cards
                                            • Companies and Brands

                                                • Allied Irish Bank
                                                  • Key facts
                                                    • Capabilities
                                                      • Recent developments
                                                        • Danske Bank
                                                          • Key facts
                                                            • Capabilities
                                                              • Recent developments
                                                                • Halifax
                                                                  • Key facts
                                                                    • Capabilities
                                                                      • Recent developments
                                                                        • KBC Ireland (RoI Only)
                                                                          • Key facts
                                                                            • Product portfolio
                                                                              • Recent developments
                                                                                • Nationwide
                                                                                  • Key facts
                                                                                    • Capabilities
                                                                                      • Recent developments
                                                                                        • Permanent TSB (RoI Only)
                                                                                          • Key facts
                                                                                            • Capabilities
                                                                                              • Santander (NI Only)
                                                                                                • Key facts
                                                                                                  • Capabilities
                                                                                                    • Recent developments
                                                                                                      • Ulster Bank
                                                                                                        • Key facts
                                                                                                          • Capabilities
                                                                                                            • Recent developments
                                                                                                              • Bank of Ireland
                                                                                                                • Key facts
                                                                                                                  • Capabilities
                                                                                                                    • Recent developments
                                                                                                                      • HSBC
                                                                                                                        • Key facts
                                                                                                                          • Capabilities
                                                                                                                            • Recent developments
                                                                                                                            • The Consumer – What You Need to Know

                                                                                                                              • The internet is now the primary channel for managing accounts
                                                                                                                                • Online banking users not entirely convinced about apps over websites
                                                                                                                                  • Day-to-day banking activities being conducted via digital channels
                                                                                                                                    • Safety and security a major issue for consumers
                                                                                                                                    • Frequency and Method of Accessing Account

                                                                                                                                        • Near-universal ownership of current accounts in NI and RoI
                                                                                                                                          • Figure 16: Consumers who own a current account, RoI and NI, April 2017
                                                                                                                                        • Shift from branch to online now effectively complete
                                                                                                                                          • Figure 17: Channels consumers use to access their current account and how often they typically use it, RoI and NI, April 2017
                                                                                                                                        • Branches used by most consumers – but very infrequently
                                                                                                                                          • Figure 18: Consumers who use branches to access their current account and how often they typically use them, RoI and NI, April 2017
                                                                                                                                        • C2DEFs, 55+ and low earners most likely to use branches frequently
                                                                                                                                          • Figure 19: Consumers who use branches to access their current account at least once a week, by age, social class, income and daily internet usage, RoI, April 2017
                                                                                                                                        • Consumers aged 25-44 and ABC1s most inclined towards infrequent branch use
                                                                                                                                          • Figure 20: Consumers who use branches to access their current account less than every 3 months, by gender, age and social class, RoI and NI, April 2017
                                                                                                                                        • Consumers regularly and frequently accessing accounts online
                                                                                                                                          • Figure 21: Consumers who access their current account online via various devices once a week or more, RoI and NI, April 2017
                                                                                                                                        • Smartphones used by younger and more tech-savvy consumers
                                                                                                                                          • Figure 22: Consumers who access their current account online using a smartphone once a day or more, by gender, age and daily internet usage, RoI and NI, April 2017
                                                                                                                                        • Consumers aged 55+ and non-internet-savvy less inclined to use smartphones
                                                                                                                                          • Figure 23: Consumers who never access their current account online using a smartphone, by gender, age and daily internet usage, RoI and NI, April 2017
                                                                                                                                        • Full-time employees and ABC1s accessing regularly via PCs or laptops
                                                                                                                                          • Figure 24: Consumers who access their current account online via a PC/laptop 2-3 times per week, by work status and social class, RoI and NI, April 2017
                                                                                                                                        • Tendency to never use tablets increases with age
                                                                                                                                          • Figure 25: Consumers who never access their current account online via various a tablet computer (ie iPad), by gender and age, RoI and NI, April 2017
                                                                                                                                      • Accessing Account via Devices

                                                                                                                                          • Just over half of smartphone-users access account via an app
                                                                                                                                            • Figure 26: Consumer preference on how to access their bank account via devices, RoI and NI, April 2017
                                                                                                                                          • Younger consumers most inclined to use mobile banking apps
                                                                                                                                            • Figure 27: Consumers who access their bank account online via smartphone via an app, by gender and age RoI and NI, April 2017
                                                                                                                                          • Although consumers aged 35-44 use websites on their smartphones
                                                                                                                                            • Figure 28: Consumers who access their bank account online via smartphone via a website, by gender and age RoI and NI, April 2017
                                                                                                                                          • Website over app use associated with lower online experience
                                                                                                                                            • Figure 29: Consumers who access their bank account online via tablet computer via a website, by daily internet usage, RoI and NI, April 2017
                                                                                                                                            • Figure 30: Consumers who access their bank account online via tablet computer via an app, by gender and age RoI and NI, April 2017
                                                                                                                                        • Activities and Channels

                                                                                                                                            • Online channels the preferred option for account management
                                                                                                                                              • Figure 31: Types of banking activities undertaken, by channel, RoI and NI, April 2017
                                                                                                                                            • Branches still the preferred channel when help is needed
                                                                                                                                              • Figure 32: Channels used when seeking financial advice, RoI and NI, April 2017
                                                                                                                                            • Branch preferred when applying for loan or opening new account
                                                                                                                                            • Attitudes towards Online Banking

                                                                                                                                                • Security at the forefront of consumers’ views on online banking
                                                                                                                                                  • Figure 33: Agreement with statements related to online banking, NI and RoI, April 2017
                                                                                                                                                • Young, tech-savvy most confident about mobile payments security
                                                                                                                                                  • Figure 34: Agreement with statement, ‘I think that mobile payments are as secure as other payment methods‘, by age and devices in household, NI and RoI, April 2017
                                                                                                                                                • Accessing account via social media a step too far for all consumers
                                                                                                                                                  • Figure 35: Disagreement with statement, ‘ I would be comfortable using a social media or messaging app (eg Facebook Messenger, WhatsApp) for accessing my bank accounts ‘, by age and daily internet usage, NI and RoI, April 2017
                                                                                                                                                • Concerns over device theft or loss similarly constant across ages
                                                                                                                                                  • Figure 36: Agreement with statement, ‘ I am very concerned about my account security if my phone/tablet is lost/stolen (eg card details, address) ‘, by age and daily internet usage, NI and RoI, April 2017
                                                                                                                                                • Willingness to put up with inconvenience for sake of security
                                                                                                                                                  • Figure 37: Agreement with statement, ‘I have found the security features of my online account troublesome (ie too many passwords/PINs)’, by age, NI and RoI, April 2017
                                                                                                                                                • And most would welcome additional features to enhance security
                                                                                                                                                  • Figure 38: Agreement with statement, ‘I think biometric measures (eg fingerprints/iris scan) would help to improve online payment security’, by age and devices in household, NI and RoI, April 2017
                                                                                                                                                • Minority of consumers prepared to pay for enhanced security
                                                                                                                                                  • Figure 39: Agreement with statement, ‘I would pay an annual fee to my bank for enhanced security against online fraud’, by age and social class, NI and RoI, April 2017
                                                                                                                                                • High-earners and 25-34s most likely to have been victims of fraud
                                                                                                                                                  • Figure 40: Agreement with statement, ‘I have been a victim of online banking fraud in the last 12 months (eg credit card details compromised)’, by age and gross annual household income, NI and RoI, April 2017
                                                                                                                                                • Strong growth in use of online banking among all consumers
                                                                                                                                                  • Figure 41: Agreement with statement, ‘I manage more of my finances online now compared to 12 months ago’, by gender and age, NI and RoI, April 2017
                                                                                                                                                • Only a minority have had difficulties using online banking in last year
                                                                                                                                                  • Figure 42: Agreement with statement, ‘ I have had to contact my bank directly due to a problem/issue with my online banking accounts in the last 12 months’, by age and daily internet usage, NI and RoI, April 2017
                                                                                                                                                • ABC1s, younger consumers keen on expanded functionality of mobile banking
                                                                                                                                                  • Figure 43: Agreement with statement, ‘I would be interested in being able to access financial advisers via smartphone/tablet features (ie Facetime, Skype, etc)’, by age and socio-economic background, NI and RoI, April 2017
                                                                                                                                                • Almost half would be comfortable with an online-only bank
                                                                                                                                                  • Figure 44: Agreement with statement, ‘I am happy to use a current account provider who can only be accessed online’, by age and daily internet usage, NI and RoI, April 2017
                                                                                                                                                  • Figure 45: Agreement with statement, ‘I am happy to use a current account provider who can only be accessed online’, by age and daily internet usage, NI and RoI, June 2012* and April 2017
                                                                                                                                                • Although a majority still prefer to occasionally visit a branch
                                                                                                                                                  • Figure 46: Agreement with statement, ‘I prefer visiting branches for important financial issues (eg to arrange a mortgage/loan)’, by age and daily internet usage, NI and RoI, April 2017
                                                                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                • Data sources
                                                                                                                                                  • Generational cohort definitions
                                                                                                                                                    • Abbreviations

                                                                                                                                                    Companies Covered

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

                                                                                                                                                    Online & Mobile Banking - Ireland - August 2017

                                                                                                                                                    US $1,466.97 (Excl.Tax)