2022
9
UK The Role of Banking in Society Market Report 2022
2022-12-22T03:06:43+00:00
OX1101861
2195
158878
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Report
en_GB
“Despite the efforts banks make towards ethical and socially responsible practices, they often struggle to convince consumers that they have a social conscience. Concerns regarding unfair business practices, branch closures…

UK The Role of Banking in Society Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK The Role of Banking in Society Market Report examines the economic and social context influencing the role of banking in society and consumers’ concerns in relation to the corporate social responsibility of banks. This report includes Mintel’s independent market and consumer analysis, providing industry insight to help you interpret current and future consumer attitudes towards banking.

Current Role of Banks in the UK

Bank and building society branches in the UK have declined steadily in recent years, and the over 65s age group, who are reliant on traditional interaction with their banks, have felt the impact of closures more acutely. If banks want to reassure consumers, especially older ones, and reinforce their image as socially responsible institutions, they will need a clear signpost to alternative arrangements and to look for ways to provide ongoing support to communities where branches are closing.

Consumer Attitudes Towards Banks and Key Industry Trends

Rising inflation is placing increased pressure on consumer finances, eroding real wages and impacting financial wellbeing. As people have to grapple with sky-high energy bills and higher costs for everyday essentials, banks have a social responsibility to help consumers during difficult times. Several providers have ramped up their efforts to help customers with the cost of living crisis, which should help them strengthen the bank’s socially responsible image.

  • 39% of people consider that banks should maintain a community presence to be socially responsible, rising to 61% of over-65s.
  • 83% of those struggling financially had been affected by increases in food and drink prices.
  • 70% of consumers have concerns regarding unfair corporate business practices.
  • 70% of those with a bank account think their main banking provider should operate in a socially responsible way.

Future Expectations of the Role of Banks in the UK

Mintel’s role of banking in society market research reveals that many consumers have concerns regarding unfair corporate business practices, including sustainability efforts. While ESG reports produced by banks are available on their websites, it is unlikely that many people have the time or inclination for detailed research. Instead, consumers expect banks to communicate their involvement in socially responsible causes. In the longer term, banks have an opportunity to engage consumers through easy-to-understand, accessible communication and messages that explain what they are doing to support society, as well as the results of their actions.

To discover more about the UK The Role of Banking in Society Market Report 2022, read our UK Current Accounts Market Report 2022, or take a look at our Banking Market Research Reports.

Quickly Understand

  • Economic and social context influencing the role of banking in society.
  • Consumers’ main concerns in relation to the corporate social responsibility of banks.
  • Consumers’ perception and attitudes of how socially responsible different types of companies are.
  • Importance of social responsibility in banking.
  • Reasons why people think banks take socially responsible actions.

Covered in this Report

Brands: Barclays, Coventry Building Society, HSBC, Lloyds Banking Group, NatWest, Nationwide Building Society, Santander, TSB, Monzo, Triodos, Starling Bank.

Expert Analysis from a Specialist in the Financial Sector

This report, written by Stefania Apostol, a leading analyst in the financial services sector, delivers in-depth commentary and analysis to highlight the social responsibility of banks and add expert context to the numbers.

Despite the efforts banks make towards ethical and socially responsible practices, they often struggle to convince consumers that they have a social conscience. Concerns regarding unfair business practices, branch closures and media coverage of unethical practices fuel these negative perceptions. However, with a potential recession looming and unprecedented inflationary pressure, which will only deepen existing societal issues, banks could play a key role in helping consumers and supporting society. By helping vulnerable customers, making sure that access to cash is not restricted and increasing transparency, banks could reinforce their credentials as socially responsible companies.”

Stefania Apostol - Financial Services Analyst

Stefania Apostol
Financial Services Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
      • Executive Summary

          • The Market
            • Most people are feeling the effects of rising prices
              • Figure 1: Issues faced in the last two months, by financial situation, 2022
            • Real wages are eroded by inflation
              • Figure 2: Annual changes in CPI, average regular wages and average real regular wages (adjusted for CPI), 2007-22
            • Societal shifts and issues bring to the fore the role of banks in society
              • The consumer
                • Consumers show concerns over fairness
                  • Figure 3: Top corporate social responsibility concerns, 2022
                • Traditional high street banks have a favourable reputation
                  • Figure 4: Ranking of how socially responsible different companies are, 2022
                • Most consumers want banks to operate in a socially responsible way
                  • Figure 5: Importance of social responsibility, 2022
                • Supporting vulnerable customers tops the list of socially responsible actions
                  • Figure 6: What consumers consider important in order for a bank to be perceived as socially responsible, 2022
                • Socially responsible actions struggle with sceptical perceptions
                  • Figure 7: Reasons why people think banks take socially responsible actions, 2022
                • Banks could improve communication about their socially responsible initiatives
                  • Figure 8: Attitudes towards social responsibility, 2022
              • Issues and Insights

                • Difficult times place emphasis on social responsibility
                  • Banks still struggle to convince many consumers about their ethical intentions…
                    • …but this scepticism could be beneficial
                    • Economic Context

                      • The UK economy is expected to enter into a prolonged recession
                        • Figure 9: Real GDP, 2018-28 (forecast*)
                      • Consumers face inflationary pressure…
                        • Figure 10: CPI and CPIH, 12-month rates, 2016-22
                      • …and most people are feeling the effects of rising prices
                        • Figure 11: Issues faced in the last two months, by financial situation, 2022
                      • Consumers’ financial wellbeing deteriorates
                        • Figure 12: Household financial wellbeing index, 2016-22
                      • Real wages are eroded by inflation
                        • Figure 13: Annual changes in CPI, average regular wages and average real regular wages (adjusted for CPI), 2007-22
                    • Social Context

                      • The cost-of-living crisis will push more people into poverty…
                          • Figure 14: Estimated percentage of individuals in relative low income, UK, 2000/01-2020/21
                        • …and deepen wealth inequalities
                          • Figure 15: Percentage of total wealth held by individuals in each individual wealth decile, Great Britain, 2018-20
                        • UK’s population is ageing
                          • Figure 16: UK population projections, by age, 2020-50
                        • Ethnic diversity is on the rise
                          • Figure 17: Ethnicity, by age, 2011
                        • The gender pay gap still exists
                          • Figure 18: Gender pay gap for median gross hourly earnings, 2000-22
                        • The housing crisis is a social issue
                          • Figure 19: Number of permanent dwellings started and completed in the UK, 1980/81-2021/22
                      • Regulatory and Legislative Changes

                        • Protecting access to cash is high on the regulatory agenda
                          • FCA launches guidance on the treatment of vulnerable customers
                          • Corporate Social Responsibility Concerns

                            • Consumers show concerns over fairness
                              • Tax avoidance tops consumers’ concerns…
                                • …followed closely by excessive profits
                                  • Figure 20: Top corporate social responsibility concerns, 2022
                                • Social inequality is more concerning for younger generations
                                  • Figure 21: Proportion of people including ‘social inequality’ among their top social responsibility concerns, by generation, 2022
                              • Social Responsibility by Type of Company

                                • Traditional high street banks have a favourable reputation…
                                  • …having focused on CSR activities in wake of financial crisis and pandemic…
                                    • …and now through the cost-of-living crisis
                                      • Figure 22: Ranking of how socially responsible different companies are, 2022
                                    • Investment companies could improve their image
                                      • Figure 23: Ranking of how socially responsible different companies are, 2022
                                    • Younger generations are more likely to think digital-only banks are socially responsible
                                      • Figure 24: Agreement that digital-only banks are very or somewhat socially responsible, by generation, 2022
                                  • Importance of Social Responsibility

                                    • Consumers expect banks to be socially responsible…
                                      • …but few hold an account with ethical provider
                                        • Figure 25: Importance of social responsibility, 2022
                                    • Most Important Socially Responsible Factors for Banks

                                      • Banks should support vulnerable customers
                                        • More can be done to highlight support for vulnerable customers
                                          • Figure 26: What consumers consider important in order for a bank to be perceived as socially responsible, 2022
                                        • Community presence is linked to social responsibility
                                          • Banking hubs emerge as a possible solution to branch closures
                                            • Figure 27: Proportion of people who cite “maintain a community presence” as an important factor for a bank to be considered socially responsible, by age, 2022
                                          • Provide money management support to women
                                            • Campaigns aim to engage and empower women
                                              • Figure 28: Proportion of people who cite “money management/budgeting support” as an important factor for a bank to be considered socially responsible, by age and gender, 2022
                                          • Motivations for Taking Socially Responsible Actions

                                            • More than half of people think banks are seeking to improve their image
                                                • Figure 29: Reasons why people think banks take socially responsible actions, 2022
                                              • Socially responsible actions struggle with sceptical perceptions
                                                  • Figure 30: Selected reason why people think banks take socially responsible actions, by financial situation, 2022
                                              • Attitudes towards Social Responsibility

                                                • Increase transparency regarding where the money goes
                                                    • Figure 31: Attitudes towards social responsibility, 2022
                                                  • Banks could improve communication about their socially responsible initiatives
                                                      • Figure 32: Attitudes towards social responsibility, 2022
                                                    • Millennials are more likely to show social commitment
                                                      • Figure 33: Selected attitudes towards social responsibility, by generation, 2022
                                                  • Consumer Segmentation of Attitudes towards Social Responsibility

                                                      • Proof seekers
                                                        • Confused sceptics
                                                          • Ethical devotees
                                                            • Ambivalent individualists
                                                              • Figure 34: Cluster analysis of consumer attitudes towards social responsibility, 2022
                                                            • Key demographics
                                                                • Figure 35: Cluster analysis of consumer attitudes towards social responsibility, by gender and generation, 2022
                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                • Abbreviations
                                                                  • Consumer research methodology
                                                                    • Cluster Analysis

                                                                    About the report

                                                                    This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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                                                                    *databooks not available with UK B2B Industry reports.

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