2023
9
UK Current Accounts Market Report 2023
2023-11-13T14:02:41+00:00
REP377A5382_4B16_43A5_B624_0C059DB3DF00
2195
167984
[{"name":"Banking and Payments","url":"https:\/\/store.mintel.com\/industries\/finance\/financial-services\/banking-payments"}]
Report
en_GB
Although overall current account satisfaction is high, consumers are shopping around and will be enticed to switch by cash joining bonuses and higher savings rates. Adrian Reynolds, Principal Analyst…

UK Current Accounts Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and secure future growth for your business with Mintel’s UK Current Accounts Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest industry trends and consumer behaviours affecting your industry. 

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Key Issues Covered in this Report

  • Trends in current account ownership
  • Competitive landscape of the UK current account market
  • Consumer satisfaction with current accounts and features
  • Switching behaviour and motivators to switch account providers
  • Innovation and advertising strategies
  • Impact of the cost-of-living crisis

UK Current Accounts – Market Overview

Mintel has used its consumer research to calculate the number of current accounts held in the UK, and the estimated number of UK current accounts has grown to its highest level since 2020. The increase in numbers is being driven by a rise in multiple account ownership, 40% of people now have multiple current accounts. This reflects the rising use of digital banks as additional accounts. The ease of all-digital sign-up makes it simple for consumers to try brands such as Monzo and Chase, without committing to paying in their monthly salary or using CASS.

  • UK current accounts market share: Traditional banking providers continue to dominate the market. 72% of UK consumers have current accounts with the ‘Big 4’ banking groups (Barclays, Lloyds Banking Group, NatWest Group, HSBC).

Current Accounts UK Consumer Trends

Switching growing in popularity

Switching activity has been high in 2023 and that looks set to continue into 2024, with almost a fifth of people saying they plan to switch their main account in the next year. The cost-of-living crisis will make people shop around more for better deals, with over a third already saying they have used price comparison websites to assess current accounts in the last year.

Cost-of-living crisis adds emphasis on overdrafts

Many consumers are turning to overdrafts to navigate the rising cost of living. Over a quarter of consumers say that they have used their overdraft more in the last 12 months as a direct result of the cost-of-living crisis. This is particularly the case for younger consumers, with lower average levels of savings. Some banks, such as HSBC and First Direct have offered limited time £500 interest free buffers. Helping people through the cost-of-living crisis in this way could help drive loyalty.

To discover how your brand can harness the latest consumer and industry trends to take your brand to the next level, purchase our full report. Packed with expert analysis and recommendations for growth opportunities in the UK banking industry.

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Expert Analysis from a Finance Industry Specialist

This report, written by Adrian Reynolds, a leading financial services analyst, delivers in-depth commentary and analysis to highlight current trends in the UK current accounts market and add expert context to the numbers.

Although overall current account satisfaction is high, consumers are shopping around and will be enticed to switch by cash joining bonuses and higher savings rates.

Adrian ReynoldsAdrian Reynolds
Principal Analyst

Table of Contents

  1. Executive Summary

    • Key issues covered in this Report
    • Opportunities for the current account market
    • Market dynamics
    • Graph 1: estimated number of current accounts, 2019-23
    • Graph 2: current account providers by customer use of main and other current accounts, 2023
    • Graph 3: number of switches per month using the CASS, 2021-23
    • Graph 4: bank and building society numbers, 2016-22
    • What consumers want and why
    • Graph 5: current account switching activity in the last 12 months, by age, 2023
    • Graph 6: intention to switch main current account in the next 12 months, by age, 2023
    • Graph 7: use of additional current accounts for spending abroad, by age, 2023
    • Graph 8: use of additional accounts due to superior app performance, by age, 2023
    • Innovation and marketing
    • Graph 9: total above-the line, online display and direct mail advertising expenditure on current accounts, 2018-23
  2. Market Dynamics

    • Market size
    • Graph 10: estimated number of current accounts, 2019-23
    • Market share
    • Graph 11: current account ownership, by type of provider, 2023
    • Macro-economic factors
    • Graph 12: CPI and CPIH inflation, 2016-23
    • Graph 13: Bank of England base rate changes, 2017-23
    • Graph 14: interest rates on unsecured credit products, 2020-23
    • Graph 15: issues affecting consumers over the last two months, 2023
    • Graph 16: financial wellbeing index, 2016-23
    • Graph 17: financial confidence index, 2016-23
    • Channels to market
    • Graph 18: number of switches per month using the CASS, 2021-23
    • Graph 19: bank and building society numbers, 2016-22
    • Regulatory and legislative changes
  3. What Consumers Want and Why

    • Current account ownership
    • Graph 20: current account ownership, 2023
    • Graph 21: current account ownership, 2019-23
    • Graph 22: current account ownership, by age, 2023
    • Graph 23: joint account ownership, 2023
    • Types of current accounts
    • Graph 24: type of current account held, 2023
    • Graph 25: ownership of fee-paying accounts, by age, 2023
    • Current account satisfaction
    • Graph 26: overall satisfaction with main current accounts, 2023
    • Graph 27: satisfaction with main current account, by feature, 2023
    • Graph 28: satisfaction with access to bank branches, by age, 2023
    • Key driver analysis of current account satisfaction
    • Important factors when switching accounts
    • Graph 29: important factors when considering switching main current account, 2023
    • Graph 30: importance of interest rates on account balances when switching current account, 2023
    • Graph 31: importance of sustainability tools when switching current account, 2023
    • Graph 32: importance of bank’s environmental record when switching accounts, 2023
    • Switching activity
    • Graph 33: current account switching activity in the last 12 months, by age, 2023
    • Graph 34: intention to switch main current account in the next 12 months, by age, 2023
    • Reasons for using additional accounts
    • Graph 35: use of additional accounts due to superior app performance, by age, 2023
    • Graph 36: use of additional current accounts for spending abroad, by age, 2023
    • Attitudes towards current accounts
    • Graph 37: attitudes towards current accounts, 2023
    • Graph 38: additional use of overdraft due to the rising cost of living, by age, 2023
    • Graph 39: viewing all financial accounts within the online/mobile banking of main current account, by age, 2023
    • Graph 40: use of mobile payments linked to main current account, by age, 2023
    • Graph 41: interest in fee-paying current accounts that include media subscriptions, by age, 2023
  4. Innovation And Marketing Trends

    • Competitive strategies
    • Launch activity and innovation
    • Advertising and marketing activity
    • Graph 42: total above-the line, online display and direct mail advertising expenditure on current accounts, 2018-23
    • Graph 43: total above-the line, online display and direct mail advertising expenditure on current accounts, by spend category, 2018-23
    • Graph 44: top five advertisers of above-the-line, online display and direct mail advertising expenditure on current accounts, 2022/23
  5. Appendix

    • Report scope and definitions
    • Methodology

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2024 Sample Consumer Cover

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