2022
0
Ireland Current Accounts Market Report 2022
2022-10-06T04:17:12+01:00
OX1101065
1800
156250
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Report
en_GB
“Even though consumers are broadly satisfied with their existing current account arrangements, the data indicate a fairly high level of intent when it comes to switching. The challenge for traditional,…

Ireland Current Accounts Market Report 2022

 1,800 (Excl.Tax)

Description

“Even though consumers are broadly satisfied with their existing current account arrangements, the data indicate a fairly high level of intent when it comes to switching. The challenge for traditional, high street providers is to at the very least keep pace with the advanced tech offerings of the digital challenger banks. In addition to leading the way with sophisticated apps and other features, these providers generally offer a free account option, which has resonated strongly with RoI consumers, in particular.”

– Brian O’Connor, Senior Consumer Analyst

Key issues covered in this Report

  • The impact of COVID-19 on the current account market in NI and RoI.
  • Market drivers and dynamics in the current account market.
  • Current account ownership among Irish consumers, and the type of accounts that consumers hold.
  • Consumer satisfaction with their current accounts and current account providers.
  • Whether consumers have opened new accounts over past 12 months, and whether consumers intend switching providers in the coming 12 months.
  • Consumer attitudes towards various issues relating to current accounts and current account providers.

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Products covered in this Report
          • Definitions
          • Executive Summary

              • The impact of COVID-19 on the current account market
                • Figure 1: Number Short-, medium- and long-term impact of COVID-19 on current accounts, August 2022
              • The market
                • Almost 7.4 million active current accounts in Ireland in 2022
                  • Figure 2: Number of current accounts, actual, estimated, forecast and projected, IoI, RoI and NI , 2017-27
                • Year-on-year annual growth to bring total number above 8 million by 2027
                  • Figure 3: Index of number of current accounts, actual, estimated, forecast and projected, RoI and NI, 2017-27
                • Market Drivers
                  • Outlooks for both NI and RoI labour markets remain positive
                    • Only a minority say their own financial situation is healthy
                      • Continued reduction in branch network to push more banking online
                        • High level of current account switching activity in UK (including NI)
                          • Departures from market spur heightened switching activity in RoI
                            • Digital-only banks gaining foothold due to increasing charges in RoI
                              • The Consumer
                                • Almost every adult in Ireland has a current account
                                  • Figure 4: Number of current accounts owned, NI and RoI, 2022
                                • Most consumers have a standard or regular current account
                                  • Figure 5: Types of current account that consumers have, NI and RoI, 2022
                                • No dominant forces in the NI main current account market
                                  • Figure 6: Where consumers have their main current account, NI, 2022
                                  • Figure 7: Where consumers have their non-main current account, NI, 2022
                                • RoI main account market dominated by just three providers
                                  • Figure 8: Where consumers have their main current account, RoI, 2022
                                  • Figure 9: Where consumers have their non-main current account, RoI, 2022
                                • Consumers (especially in NI) satisfied with current accounts
                                  • Figure 10: How satisfied or dissatisfied consumers are with selected factors of their main current account, RoI, 2022
                                  • Figure 11: How satisfied or dissatisfied consumers are with selected factors of their main current account, NI, 2022
                                • Three quarters of consumers have not altered arrangements of late
                                  • Figure 12: Activities relating to current accounts that consumers have done in the last 12 months, NI and RoI, 2022
                                • Around 1 in 4 likely to switch current account provider in coming year
                                  • Figure 13: Likelihood of consumers moving their main current account to a new provider in the next 12 months, NI and RoI, 2022
                                • Consumers unconvinced about online-only banks, value branches
                                  • Figure 14: Agreement with selected statements relating to current accounts and current account providers, NI and RoI, 2022
                              • The Market – Key Takeaways

                                • Outlooks for both NI and RoI labour markets remain positive
                                  • Only a minority say their own financial situation is healthy
                                    • Continued reduction in branch network to push more banking online
                                      • High level of current account switching activity in UK (including NI)
                                        • Departures from market spur heightened switching activity in RoI
                                          • Digital-only banks gaining foothold due to increasing charges in RoI
                                          • Market Size and Forecast

                                              • Short-, medium- and long-term impact on the industry
                                                • Figure 15: Short-, medium- and long-term impact of COVID-19 on current accounts, August 2022
                                              • Almost 7.4 million active current accounts in Ireland in 2022
                                                • Figure 16: Number of current accounts, actual, estimated, forecast and projected, IoI, RoI and NI , 2017-27
                                              • Steady growth to see number of accounts exceed 8 million by 2027
                                                • Figure 17: Index of number of current accounts, actual, estimated, forecast and projected, RoI and NI , 2017-27
                                            • Market Drivers

                                              • Economic growth slowing, but labour markets remain strong
                                                • Job creation at record high in NI
                                                  • Figure 18: Economic growth, estimate and forecast, NI and UK 2021-23
                                                  • Figure 19: Unemployment rate, estimate and forecast, NI and UK, 2021-23
                                                • RoI economy growing but unemployment to rise next year
                                                  • Figure 20: GDP growth, % year-on-year, actual, estimated and forecasted, RoI, 2021-24
                                                  • Figure 21: Unemployment rate, actual, estimated and forecasted, RoI, 2020-24
                                                • Fewer than 1 in 4 describe financial situation as being healthy
                                                  • Figure 22: Consumers’ own assessment of current financial situation, NI, RoI and IoI, 2022
                                                • Reduction in branch network to further shift to online banking
                                                  • Figure 23: Existing financial services infrastructure, numbers of bank, credit union and post office branches, RoI, 2019
                                                  • Figure 24: Percentage of population, by distance to nearest bank with cashier service, RoI, 2019
                                                • Current account switches up more than 40% in Q1 2022 in UK (including NI)
                                                  • Figure 25: Quarterly switching volumes*, current accounts, UK (incl. NI), 2020-22
                                                  • Figure 26: Current account switches, gains and losses, by brand, UK (including NI), Q4 2021
                                                • Low switching culture turned on head by market exits in RoI
                                                  • Rising current account charges opening door to digital rivals in RoI
                                                    • Figure 27: Current account fees and charges, by provider, RoI, 2022
                                                • Companies and Innovations – Key Takeaways

                                                  • Reminding customers of environmental impact
                                                    • New measures for privacy
                                                      • Branches key to supporting elderly customers
                                                      • Who’s Innovating?

                                                        • Encouraging customers to go paperless
                                                          • Incognito mode banking for greater security and privacy
                                                            • Concerns with elderly exclusion
                                                            • Companies and Brands

                                                                • Allied Irish Bank
                                                                  • Key facts
                                                                    • Product Portfolio
                                                                      • AIB
                                                                        • Recent developments
                                                                          • An Post (RoI only)
                                                                            • Key facts
                                                                              • Product Portfolio
                                                                                • Recent developments
                                                                                  • Bank of Ireland
                                                                                    • Key facts
                                                                                      • Product Portfolio
                                                                                        • Bank of Ireland UK
                                                                                          • Recent developments
                                                                                            • Danske Bank (NI only)
                                                                                              • Key facts
                                                                                                • Product portfolio
                                                                                                  • Recent developments
                                                                                                    • EBS (RoI only)
                                                                                                      • Key facts
                                                                                                        • Product portfolio
                                                                                                          • Recent developments
                                                                                                            • Halifax (NI only)
                                                                                                              • Key facts
                                                                                                                • Product portfolio
                                                                                                                  • Recent news
                                                                                                                    • HSBC (NI only)
                                                                                                                      • Key facts
                                                                                                                        • Product portfolio
                                                                                                                          • KBC Bank Ireland (RoI only)
                                                                                                                            • Key facts
                                                                                                                              • Product portfolio
                                                                                                                                • Recent developments
                                                                                                                                  • Nationwide (NI only)
                                                                                                                                    • Key facts
                                                                                                                                      • Product portfolio
                                                                                                                                        • Recent developments
                                                                                                                                          • Permanent TSB (RoI only)
                                                                                                                                            • Key facts
                                                                                                                                              • Product portfolio
                                                                                                                                                • Recent developments
                                                                                                                                                  • Santander (NI only)
                                                                                                                                                    • Key facts
                                                                                                                                                      • Product portfolio
                                                                                                                                                        • Recent developments
                                                                                                                                                          • Ulster Bank
                                                                                                                                                            • Key facts
                                                                                                                                                              • Product portfolio
                                                                                                                                                                • Recent developments
                                                                                                                                                                • The Consumer – Key Takeaways

                                                                                                                                                                  • Almost every adult in Ireland has a current account
                                                                                                                                                                    • Most consumers have a standard or regular current account
                                                                                                                                                                      • No dominant forces in the NI main current account market
                                                                                                                                                                        • RoI main account market dominated by just three providers
                                                                                                                                                                          • Consumers (especially in NI) satisfied with current accounts
                                                                                                                                                                            • Three quarters of consumers have not altered arrangements of late
                                                                                                                                                                              • Around one in four likely to switch current account provider in coming year
                                                                                                                                                                                • Consumers unconvinced about online-only banks, value branches
                                                                                                                                                                                • Ownership of Current Accounts

                                                                                                                                                                                    • Almost every adult in Ireland has a current account
                                                                                                                                                                                      • Figure 28: Number of current accounts owned, NI and RoI, 2022
                                                                                                                                                                                    • Almost four in 10 consumers have more than one current account
                                                                                                                                                                                      • Figure 29: Multiple current account ownership, NI and RoI, 2022
                                                                                                                                                                                    • Men, 18-34s, most inclined to have two or more current accounts
                                                                                                                                                                                      • Figure 30: Multiple current account ownership, by gender and age, NI and RoI, 2022
                                                                                                                                                                                    • Multiple account ownership linked to income and social class
                                                                                                                                                                                      • Figure 31: Multiple current account ownership, by social class and household income, NI and RoI, 2022
                                                                                                                                                                                    • 31% in RoI, 24% in NI have joint current accounts
                                                                                                                                                                                      • Figure 32: Whether current account held in own name, jointly or both, NI and RoI, 2022
                                                                                                                                                                                  • Types of Current Account

                                                                                                                                                                                      • Majority of consumers have a standard or regular current account
                                                                                                                                                                                        • Figure 33: Types of current account that consumers have, NI and RoI, 2022
                                                                                                                                                                                      • Fee-paying accounts more than twice as popular among NI consumers
                                                                                                                                                                                      • Where Current Accounts Are Held

                                                                                                                                                                                          • Five major providers of main current accounts in NI
                                                                                                                                                                                            • Figure 34: Where consumers have their main current account, NI, 2022
                                                                                                                                                                                          • Revolut the disrupter in non-main current account market in NI
                                                                                                                                                                                            • Figure 35: Where consumers have their non-main current account, NI, 2022
                                                                                                                                                                                          • Three providers account for over 75% of main accounts in RoI
                                                                                                                                                                                            • Figure 36: Where consumers have their main current account, RoI, 2022
                                                                                                                                                                                          • Revolut goes from zero to pole position in RoI non-main account market
                                                                                                                                                                                            • Figure 37: Where consumers have their non-main current account, RoI, 2022
                                                                                                                                                                                        • Consumer Satisfaction with Current Accounts

                                                                                                                                                                                            • High level of satisfaction with current accounts – especially in NI
                                                                                                                                                                                              • Figure 38: How satisfied or dissatisfied consumers are with selected factors of their main current account, RoI, 2022
                                                                                                                                                                                              • Figure 39: How satisfied or dissatisfied consumers are with selected factors of their main current account, NI, 2022
                                                                                                                                                                                              • Figure 40: Average response of how satisfied or dissatisfied consumers are with selected factors of their main current account, RoI and NI, 2022
                                                                                                                                                                                            • Most consumers satisfied with main banking platforms
                                                                                                                                                                                              • Overall, consumers are largely satisfied with the main banking channels, being mobile apps, online platforms and physical branches.
                                                                                                                                                                                                • Core banking services largely meeting consumer expectations
                                                                                                                                                                                                  • Consumers not so convinced about banks’ ethical conduct
                                                                                                                                                                                                    • Overdrafts and banking fees major issues for RoI consumers
                                                                                                                                                                                                    • Changing Current Account Arrangements

                                                                                                                                                                                                        • 15% in RoI, 11% in NI have opened new accounts in last 12 months
                                                                                                                                                                                                          • Figure 41: Activities relating to current accounts that consumers have undertaken in the last 12 months, NI and RoI, 2022
                                                                                                                                                                                                        • Men, ABC1s and younger consumers opening new accounts
                                                                                                                                                                                                          • Figure 42: Consumers who opened a new account with a different provider in the last 12 months, by gender, age, and social class, NI and RoI, 2022
                                                                                                                                                                                                      • Switching Intentions

                                                                                                                                                                                                          • 27% of RoI, 22% of NI consumers likely to switch in coming year
                                                                                                                                                                                                            • Figure 43: Likelihood of consumers moving their main current account to a new provider in the next 12 months, NI and RoI, 2022
                                                                                                                                                                                                          • Switching is ‘not at all likely’ for majority of older consumers
                                                                                                                                                                                                            • Figure 44: Consumers who say it is ‘Not at all likely’ that they will move their main current account to a new provider in the next 12 months, NI and RoI, 2022
                                                                                                                                                                                                        • Attitudes towards Current Accounts

                                                                                                                                                                                                            • Consumers remain unconvinced about online-only banking
                                                                                                                                                                                                              • Figure 45: Agreement with selected statements relating to current accounts and current account providers, NI and RoI, 2022
                                                                                                                                                                                                            • Younger consumers most open to online-only banks
                                                                                                                                                                                                              • Figure 46: Consumer agreement with statement ‘I would be interested in an online-only bank’, by gender and age, NI and RoI, 2022
                                                                                                                                                                                                            • Location also influences consumers’ openness to online-only banks
                                                                                                                                                                                                              • Figure 47: Consumer agreement with statement ‘I would be interested in an online-only bank’, by area where the consumer lives, NI and RoI, 2022
                                                                                                                                                                                                            • Physical branches have universal appeal across ages and locations
                                                                                                                                                                                                              • Figure 48: Consumer agreement with statement ‘I feel a physical bank branch is essential’, by gender and age, NI and RoI, 2022
                                                                                                                                                                                                              • Figure 49: Consumer agreement with statement ‘I feel a physical bank branch is essential’, by area where the consumer lives, NI and RoI, 2022
                                                                                                                                                                                                            • Widespread consensus that providers should always offer a free option
                                                                                                                                                                                                              • Figure 50: Consumer agreement with statement ‘I think current account providers should always offer a free current account option’, by gender, age, and social class, NI and RoI, 2022
                                                                                                                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                                            • Data sources
                                                                                                                                                                                                              • Generational cohort definitions
                                                                                                                                                                                                                • Abbreviations

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