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

Young People and Finance - Ireland - June 2011

Young consumers aged 18-24 provide a key target market for many financial providers. Banks are keen to acquire and retain younger customers and so offer them a range of specific products and services tailored to their needs, hoping to gain their loyalty young, thus helping to generate lifetime customers.

The recession has taken its toll on young consumers’ finances, and seen them become more aware of their finances than past generations were, resulting in more savvy customers who are also more demanding.

Some key points from the report include:

  • Addressing the needs of the youth market – How do financial providers target 18-24-year-old consumers and address their needs specifically? How successful are they in this attempt?
  • Changes in spending priorities – Young consumers can be the most at risk of being unemployed during the recession. How has it changed their spending priorities and in turn their financial requirements?
  • How young consumers view financial matters – How engaged are young consumers in finance? How do they rate their financial planning skills and how high is their interest level in their finances?
  • Targeting mediums – What are the preferred mediums for banks and other financial institutions in targeting young consumers? What role do social networks play in targeting 18-24-year-olds?
  • The effects of population change and migration – With net migration at a high point, and consumers aged 18-24 continuing to account for a smaller percentage of the Irish population, how will this impact on their targeting of financial products to young consumers?

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
          • Abbreviations
          • Insights and Opportunities

            • Holding on to the migrants
              • Helping young consumers control their spending
                • Helping students to write-off their debts
                • Market in Brief

                  • Students remain an important segment
                    • Some young consumers remain oblivious to recession
                      • Young Irish consumers getting more finance-savvy
                        • Ownership increasing
                        • Fast Forward Trends

                            • Trend 1: Boomerang Generation
                              • What’s it about?
                                • What we’ve seen
                                  • What next?
                                    • Trend 2: Subsidize My Dream
                                      • What’s it about?
                                        • What we’ve seen
                                          • What next?
                                          • Internal Market Environment

                                            • Key points
                                              • Boost to students in RoI, drop in NI
                                                • Figure 1: The number of students aged 16-24 entering higher education, by academic year, 2004/05-2009/10
                                              • NI fee freeze might help maintain student numbers
                                                • RoI student numbers benefit from lower costs
                                                  • More focused career paths
                                                    • Struggling to find financing for degree and student lifestyle
                                                        • Figure 2: Lending to RoI households, by annual % change, January 2004-July 2011
                                                        • Figure 3: Outstanding indebtedness year-to-year change (%), RoI, 2005-11
                                                      • Concerns about degrees being homogenised
                                                        • Recession pushing earnings down
                                                          • Figure 4: Median gross weekly pay, all adults, NI and RoI, 2006-11
                                                          • Figure 5: Gross average weekly earnings, by age group, NI and RoI, 2010
                                                        • Travelling abroad a high priority for many young consumers
                                                          • Figure 6: Consumers who intend to take a foreign holiday in the next 12 months, by age, NI and RoI, June 2011
                                                          • Figure 7: Agreement with statements related to culture, NI and RoI, 2008-10
                                                        • Increase in university fees might dampen desire to take a gap year
                                                          • Controlling debt a low priority for 16-24-year-olds
                                                            • Figure 8: Consumers who plan on paying off debts (excluding mortgages) in the next 12 months, by age, NI and RoI, June 2011
                                                          • EMA helping to make NI young consumers more finance savvy
                                                            • Money lessons will help promote financial responsibility among young consumers
                                                              • Young consumers carefree in shopping habits
                                                                • Figure 9: Agreement with selected statements about personal situation and finances, NI and RoI, 2011
                                                                • Figure 10: Agreement with the statement “I am more careful about how I use my credit card “, by age, NI and RoI, 2011
                                                            • Broader Market Environment

                                                              • Key points
                                                                • Rocky economy will take its toll on the young
                                                                  • Figure 11: Economic outlook, RoI and NI, 2008-10
                                                                • Consumer confidence remains low
                                                                  • Figure 12: Consumer Sentiment/Confidence Index, UK (inc NI) and RoI, May 2008-August 2011
                                                                • The 18-24 age group projected to grow in RoI
                                                                  • Figure 13: Population, by age, RoI, 2006-41
                                                                • But shrink in NI…
                                                                  • Figure 14: Population, by age, NI, 2008-58
                                                                • Large projected growth in the 55+ sector
                                                                  • Figure 15: Projected population growth, 18-24 vs. 55+, NI and RoI, 2008-20
                                                                • High unemployment biggest threat to young consumers
                                                                  • Figure 16: Unemployment rates, RoI and NI, January 2009-March 2011
                                                                • Concerns about graduate exodus
                                                                  • Figure 17: Agreement with statement ‘Worried about having to emigrate to find work/go to college’, by age, NI and RoI, June 2011
                                                                • Rising costs of living eat into young consumers’ earnings
                                                                • Competitive Context

                                                                  • Key points
                                                                    • Holiday is the highest spending priority for young Irish consumers
                                                                      • Figure 18: Spending priorities over the next 12 months, RoI and NI, 2011
                                                                    • Young desire cars, but not new ones
                                                                      • Figure 19: Consumers who plan to buy a second hand car within the next 12 months, RoI and NI, 2011
                                                                    • Young RoI consumers show high level of willingness to save
                                                                      • Figure 20: Consumers who plan to contribute to or open a savings account within the next 12 months, RoI and NI, 2011
                                                                    • Young more likely to buy gadgets
                                                                      • Education a high spending priority
                                                                        • Alcohol a major drain on young consumers’ finances
                                                                          • Figure 21: Alcohol consumed in the last 12 months, by age, NI and RoI, 2010
                                                                      • Strengths and Weaknesses

                                                                        • Strengths
                                                                          • Weaknesses
                                                                          • Who’s Innovating?

                                                                            • Key points
                                                                              • Young consumers a key target for contactless payment apps
                                                                                • New technology could help young consumers seek out more financial advice
                                                                                  • University brand ambassador
                                                                                    • Offering freebies still a popular promotional tool
                                                                                    • Targeting Young Consumers

                                                                                      • Key points
                                                                                        • Young consumers access accounts more frequently with ATM
                                                                                            • Figure 22: Methods of accessing banking services, by frequency, NI and RoI, 2010
                                                                                          • Young use internet banking regularly
                                                                                              • Figure 23: Consumers who have accessed the internet in the last 12 months, NI and RoI, 2004-10
                                                                                              • Figure 24: Mobile devices that respondents use to access online banking/financial services, by demographic breakdown, NI and RoI, April 2010
                                                                                            • Younger audience online, but still a hard target
                                                                                              • Facebook a key tool in communicating with young consumers
                                                                                                  • Figure 25: Consumers aged 16-24 who use selected social networks at least once per week, NI and RoI, August 2011
                                                                                                • Government initiatives to increase financial knowledge among young consumers
                                                                                                  • Programmes in RoI
                                                                                                  • Companies and Products

                                                                                                    • Santander (Abbey National and Alliance & Leicester)
                                                                                                      • HSBC
                                                                                                        • RBS Group (Ulster Bank & Halifax)
                                                                                                          • AIB
                                                                                                            • Bank of Ireland (BoI)
                                                                                                              • Danske Bank Group (Northern Bank and National Irish Bank)
                                                                                                                • Permanent TSB
                                                                                                                • The Consumer – Young Consumer Product Ownership

                                                                                                                  • Key points
                                                                                                                    • Current account ownership increases among young consumers
                                                                                                                        • Figure 26: Number of current accounts owned, NI and RoI, 2007-10
                                                                                                                      • Low ownership of joint current accounts among 18-24 target market
                                                                                                                        • Figure 27: Type of current account owned, NI and RoI, 2010
                                                                                                                        • Figure 28: Marital status of consumers aged 18-24, NI and RoI, 2010
                                                                                                                      • Young people choose their own current accounts
                                                                                                                          • Figure 29: Who picks main current account, NI and RoI, 2010
                                                                                                                        • Company reputation is important to young consumers when selecting a current account
                                                                                                                            • Figure 30: Most important factors when choosing a bank for a current account, NI and RoI, 2010
                                                                                                                          • Half of young Irish consumers own a savings account
                                                                                                                            • Figure 31: Number of savings accounts owned, NI and RoI, 2007-10
                                                                                                                            • Figure 32: frequency that consumers pay money into savings accounts, NI and RoI, 2010
                                                                                                                            • Figure 33: Interest rates, actual and forecast, NI and RoI, 2011
                                                                                                                          • Interest the key factor when selecting a savings account
                                                                                                                              • Figure 34: Most important factors when choosing a bank for a savings account, NI and RoI, 2010
                                                                                                                            • Debit cards used most
                                                                                                                              • Figure 35: Types of plastic cards owned, NI and RoI, 2007-10
                                                                                                                            • Debit vs. credit
                                                                                                                              • Figure 36: Usage of debit and credit cards, NI and RoI, 2010
                                                                                                                            • Difference in card usage
                                                                                                                              • Figure 37: What consumers use their debit/credit cards to pay for, NI and RoI, 2010
                                                                                                                            • Ownership of loans
                                                                                                                                • Figure 38: Ownership of a loan, NI and RoI, 2008-10
                                                                                                                              • Loan levels among RoI youth decrease
                                                                                                                                • Credit union usage increases among young consumers
                                                                                                                                  • Figure 39: Have an account with a credit union, NI and RoI, 2007-10
                                                                                                                                • Credit unions not seen as been as trustworthy as banks by young consumers
                                                                                                                                    • Figure 40: Consumers who trust financial institutions, RoI and NI, 2011
                                                                                                                                  • Credit unions might be in trouble
                                                                                                                                  • Young Consumers’ Attitudes Towards Finance

                                                                                                                                    • Key points
                                                                                                                                      • Financial planning
                                                                                                                                          • Figure 41: Agreement with selected statements relating to financial planning, NI and RoI, 2010
                                                                                                                                        • Young consumers don’t feel the need to visit a financial planner
                                                                                                                                            • Figure 42: Agreement with selected statements relating to financial planning, NI and RoI, 2010
                                                                                                                                          • Seeking advice from the internet?
                                                                                                                                            • Figure 43: Consumers who have accessed the internet in the last 12 months, by age, NI and RoI, 2010
                                                                                                                                          • Young RoI consumers more aware of their finances than NI
                                                                                                                                            • Figure 44: Agreement with the statement “I am more aware of my finances than I used to be’, NI and RoI, 2010
                                                                                                                                          • Spending behaviour
                                                                                                                                              • Figure 45: Agreement with selected statements relating to spending behaviour, NI and RoI, 2010
                                                                                                                                            • Young RoI consumers likely to live beyond their means with a credit card
                                                                                                                                              • Young consumers prefer to pay in cash
                                                                                                                                                • Attitudes towards saving
                                                                                                                                                    • Figure 46: Agreement with selected statements relating to saving, NI and RoI, 2010
                                                                                                                                                  • Young RoI consumers more likely to save for the things they want
                                                                                                                                                    • Young NI consumers more inclined to trust their banks
                                                                                                                                                    • Appendix

                                                                                                                                                      • Broader market environment
                                                                                                                                                        • Unemployment
                                                                                                                                                          • Figure 47: Unemployment rate, by gender, NI, 2005-10
                                                                                                                                                          • Figure 48: Unemployment rate, by gender, RoI, 2005-10
                                                                                                                                                          • Figure 49: Number of redundancies, by gender, RoI, 2005-09
                                                                                                                                                        • NI TGI demographic tables
                                                                                                                                                          • Usage tables
                                                                                                                                                            • Figure 50: Number of current accounts held, by all demographics, NI, 2010
                                                                                                                                                            • Figure 51: Type of current account held, by all demographics, NI, 2010
                                                                                                                                                            • Figure 52: Who opened current account, by all demographics, NI, 2010
                                                                                                                                                            • Figure 53: Most important factor when choosing current account, by all demographics, NI, 2010
                                                                                                                                                            • Figure 54: Most important factor when choosing current account (continued), by all demographics, NI, 2010
                                                                                                                                                            • Figure 55: Number of savings accounts held, by all demographics, NI, 2010
                                                                                                                                                            • Figure 56: Most important factor when choosing a savings account, NI, 2010
                                                                                                                                                            • Figure 57: Most important factor when choosing a savings account (continued), NI, 2010
                                                                                                                                                            • Figure 58: Types of plastic card owned, NI, 2010
                                                                                                                                                            • Figure 59: Usage of debit card, NI, 2010
                                                                                                                                                            • Figure 60: Usage of credit card, NI, 2010
                                                                                                                                                            • Figure 61: Goods/services credit/debit card used to buy, by all demographics, NI, 2010
                                                                                                                                                            • Figure 62: Ownership of loans and credit union accounts, by all demographics, NI, 2010
                                                                                                                                                          • Financial statements
                                                                                                                                                            • Figure 63: Agreement with selected statements relating to financial planning, by all demographics, NI, 2010
                                                                                                                                                            • Figure 64: Agreement with selected statements relating to spending behaviour, by all demographics, NI, 2010
                                                                                                                                                            • Figure 65: Agreement with selected statements relating to saving, by all demographics, NI, 2010
                                                                                                                                                          • RoI TGI demographic tables
                                                                                                                                                            • Usage tables
                                                                                                                                                              • Figure 66: Number of current accounts held, by all demographics, RoI, 2010
                                                                                                                                                              • Figure 67: Type of current account held, by all demographics, RoI, 2010
                                                                                                                                                              • Figure 68: Who opened current account, by all demographics, RoI, 2010
                                                                                                                                                              • Figure 69: Most important factor when choosing current account, by all demographics, RoI, 2010
                                                                                                                                                              • Figure 70: Most important factor when choosing current account (continued), by all demographics, RoI, 2010
                                                                                                                                                              • Figure 71: Number of savings accounts held, by all demographics, RoI, 2010
                                                                                                                                                              • Figure 72: Most important factor when choosing a savings account, RoI, 2010
                                                                                                                                                              • Figure 73: Most important factor when choosing a savings account (continued), RoI, 2010
                                                                                                                                                              • Figure 74: Types of plastic card owned, RoI, 2010
                                                                                                                                                              • Figure 75: Usage of Laser card, RoI, 2010
                                                                                                                                                              • Figure 76: Usage of credit card, RoI, 2010
                                                                                                                                                              • Figure 77: Goods/services credit/debit card used to buy, by all demographics, RoI, 2010
                                                                                                                                                              • Figure 78: Ownership of loans and credit union accounts, by all demographics, RoI, 2010
                                                                                                                                                            • Financial statements
                                                                                                                                                              • Figure 79: Agreement with selected statements relating to financial planning, by all demographics, RoI, 2010
                                                                                                                                                              • Figure 80: Agreement with selected statements relating to spending behaviour, by all demographics, RoI, 2010
                                                                                                                                                              • Figure 81: Agreement with selected statements relating to saving, by all demographics, RoI, 2010

                                                                                                                                                          Companies Covered

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

                                                                                                                                                          Young People and Finance - Ireland - June 2011

                                                                                                                                                          £1,095.00 (Excl.Tax)