866-997-4948(US-Canada Toll Free)

Consumers and Retail Banking - UK - October 2013

Published By :

Mintel

Published Date : Oct 2013

Category :

Banking

No. of Pages : 289 Pages


Retail banks will need to work harder than in the past to retain their customers. Heightened awareness of the new switching service and high-profile marketing campaigns will encourage more people to consider their relationship with their existing bank over the next few years. Around one in seven current account holders would consider switching providers following the launch of the new Current Account Switch Service.
Table of Content

Introduction
Note on consumer research
Abbreviations
 
Executive Summary
Product ownership and cross-selling
Savers looking beyond their main bank for competitive deals
Figure 1: Products held and cross-sales, June 2013
Current account market share
Top six providers have a 77% share of the current account market
Figure 2: Main current account provider, June 2013
Advertising and brand research
Banks anticipate launch of switching service with an increase in adspend
Nationwide continues to stand out as the most trusted brand
Figure 3: Attitudes towards and usage of brands in the retail banking sector, June 2013
The consumer
Consumers want a multichannel service
Figure 4: Use of various retail banking channels*, June 2013
Debit cards and online banking are most valued banking services
Figure 5: Perceived value of various retail banking services, June 2013
Almost 60% believe that ‘there is no such thing as free banking’
Figure 6: Agreement with various attitudinal statements about retail banking, June 2013
One in seven are likely switchers following the launch of the switching service
Figure 7: Likelihood of switching current account provider after launch of switching service, June 2013
Nationwide is the preferred choice for potential switchers
Figure 8: Consideration of switching to various retail banking brands, June 2013
Challenger brands still need to prove their credentials
What we think

Issues in the Market
Is anyone interested in the new Current Account Switch Service?
Which brands stand to gain most from the new switching service?
Who is most likely to consider using the new switching service?
Is there ‘no such thing as free banking’?
Can banks rely on existing customers for product cross-sales?

Trend Application
Branch banking at transport hubs
Catering for the modern time-pressed consumer
Does face-to-face service have a future?

Retail Banking Providers – Current Account Share
Key points
Little change in market shares for top providers
Figure 9: Main current account provider, June 2013
Smaller brands are yet to make a mark
Lloyds Banking Group maintains dominance
Figure 10: Main current account provider, by banking groups, June 2013

Retail Banking Company Profiles
Barclays
Company overview
Financial overview
Figure 11: Key financial data for Barclays plc, 2010-12
Figure 12: Key financial data for Barclays plc, 2012 and 2013
Key data
Figure 13: Key data for Barclays Plc (UK Retail and Business Banking division), 2010-12
Recent activity
HSBC
Company overview
Financial overview
Figure 14: Key financial data for HSBC Bank Plc, 2010-12
Figure 15: Key financial data for HSBC Bank Plc, 2012 and 2013
Key data
Figure 16: Key retail banking data for HSBC (UK Retail Banking Division), 2010-12
Recent activity
Lloyds Banking Group
Company overview
Financial overview
Figure 17: Key financial data for Lloyds Banking Group, 2010-12
Figure 18: Key financial data for Lloyds Banking Group, 2012 and 2013
Key data
Figure 19: Key retail banking data for Lloyds Banking Group, 2010-12
Recent activity
Nationwide
Company overview
Financial overview
Figure 20: Key financial data for Nationwide, 2012 and 2013
Figure 21: Key retail banking data for Nationwide, 2012 and 2013
Recent activity
RBS Group
Company overview
Financial overview
Figure 22: Key financial data for RBS Group, 2010-12
Figure 23: Key financial data for RBS Group, 2012 and 2013
Key data
Figure 24: Key retail banking data for RBS Group (UK Retail Banking Division), 2010-12
Recent activity
Santander
Company overview
Financial overview
Figure 25: Key financial information for Santander UK, 2010-12
Figure 26: Key financial information for Santander UK, 2012 and 2013
Key data
Figure 27: Key retail banking data for Santander UK, 2010-12
Recent activity
The Co-operative Bank
Company overview
Financial overview
Figure 28: Key financial data for Co-operative Bank, 2011 and 2012
Figure 29: Key financial data for Co-operative Bank, 2012 and 2013
Key data
Figure 30: Key retail banking data for Co-operative Bank, 2011 and 2012
Recent activity
Virgin Money
Company overview
Financial overview
Figure 31: Key financial data for Virgin Money, 2011 and 2012
Key data
Figure 32: Key retail banking data for Virgin Money, 2011 and 2012
Recent activity

Brand Communication and Promotion
Key points
Retail banks increase spend on brand building and current accounts
Figure 33: Advertising expenditure by retail banking providers, 2010-12
Figure 34: Advertising expenditure by selected retail banks, by selected product/service categories, 2011-13
Lloyds Banking Group brands lead the way in adspend
Figure 35: Retail banking advertising expenditure, by advertiser, 2011-13
A note on adspend

Brand Research
Brand map
Figure 36: Attitudes towards and usage of brands in the retail banking sector, June 2013
Correspondence analysis
Brand attitudes
Figure 37: Attitudes, by retail bank brands, June 2013
Brand personality
Figure 38: Retail banking brand personality – macro image, June 2013
Figure 39: Retail banking brand personality – micro image, June 2013
Brand experience
Figure 40: Retail banking brand usage, June 2013
Figure 41: Satisfaction with various retail banking brands, June 2013
Figure 42: Consideration of retail banking brands, June 2013
Figure 43: Consumer perceptions of current retail banking brand performance, June 2013
Brand index
Figure 44: Retail banking brand index, June 2013
Target group analysis
Figure 45: Target groups, June 2013
Figure 46: Retail banking brand usage, by target groups, June 2013
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists

Product Ownership and Cross-Selling
Key points
Scope to increase cross-sales among current account holders
Figure 47: Products held and cross-sales, June 2013
More customers are holding savings away from their main bank
Informed and rate-sensitive consumers will shop around for the best products
26% of current account holders have no other products with main bank
Figure 48: Number of products held with main current account provider, June 2013
Savings accounts tend to be the first cross-sale opportunity
Figure 49: Products held and cross-sales, by number of products held with main current account provider, June 2013
Nationwide leads the way in product cross-sales
Figure 50: Main current account provider, by number of products held with main current account provider, June 2013
 
Use of Retail Banking Channels
Key points
Most people still use bank branches from time to time
Figure 51: Frequency of use of various retail banking channels, June 2013
Advice services are widely used but on an infrequent basis
Branch closures present a tricky PR issue for banks
Online banking generates regular customer contact
Mobile banking usage continues to increase
  
Satisfaction with Retail Banking Providers
Key points
Only a small minority are unhappy with their existing bank
Figure 52: Satisfaction with existing banking provider, June 2013
Nationwide customers are more likely to be happy with their bank
Figure 53: Satisfaction with existing banking provider, by main current account provider, June 2013
Recent switchers are the most happy with their current provider
Figure 54: Satisfaction with existing banking provider, by past switching behaviour, June 2013

Satisfaction with Retail Banking Services
Key points
Online banking services drive positive perceptions of banking providers
Figure 55: Satisfaction with various retail banking services, June 2013
Mobile banking also generates positive endorsement
Branch services are perceived positively…
but telephone banking has some room for improvement
Banks perform poorly in rewarding customer loyalty
 
Perceived Value of Retail Banking Services
Key points
The drive for transparency could alter the current retail banking model
Debit cards, online banking and ATM access are the most valuable services
Figure 56: Perceived value of various retail banking services, June 2013
Branch-based services are valued but with less enthusiasm
Branch consolidation is inevitable, so what is the future for branches?
Extended opening hours divide the generations
Figure 57: Perceived value of extended branch opening hours, by age, June 2013
A challenge to develop services that appeal to different groups

Attitudes Towards Retail Banking
Key points
Consumers still have concerns about the transparency of bank charges
Figure 58: Attitudes towards retail banking, June 2013
Three fifths agree that there is no such thing as free banking
Bank customers expect to shop around for the best deals
Consumers are split over attitudes towards branch banking
Figure 59: Agreement with attitudes towards retail banking channels, by age, June 2013
Figure 60: Agreement with attitudes towards retail banking channels, by household income, June 2013
NatWest customers are more likely to believe banks provide a valued service
Figure 61: Attitudes towards retail banking, by main current account provider, June 2013

Expected Use of Current Account Switch Service
Key points
New account switching service should boost competition
One in seven current account customers are likely switchers
Figure 62: Likelihood of switching current account provider after launch of switching service, June 2013
Advertising and incentives could sway the undecided
Likely switchers are more likely to be aged 25-34
Figure 63: Likelihood of switching current account provider after launch of switching service, by gender and age, June 2013
New technology is valued by likely switchers
Figure 64: Perceived value of various retail banking services, by likelihood of switching current account provider after launch of switching service, June 2013
Non-switchers trust their bank to give them a fair deal
Figure 65: Attitudes towards retail banking, by likelihood of switching current account provider after launch of switching service, June 2013

Current Account Switching – Consideration of Retail Banking Brands
Key points
Nationwide has the widest appeal among potential switchers
Figure 66: Consideration of switching to various retail banking brands, June 2013
Main banks are preferred to new and potential entrants
Co-operative Bank and First Direct lag behind the main brands
Virgin Money and Post Office lead the way among new and potential entrants

Appendix – Retail Banking Providers – Current Account Share
Figure 67: Main current account provider, by demographics, June 2013
Figure 68: Next most popular main current account provider, by demographics, June 2013
Figure 69: Other main current account provider, by demographics, June 2013

Appendix – Brand Research
Figure 70: Brand usage, June 2013
Figure 71: Brand usage, June 2013 (continued)
Figure 72: Brand commitment, June 2013
Figure 73: Brand commitment, June 2013 (continued)
Figure 74: Brand momentum, June 2013
Figure 75: Brand momentum, June 2013 (continued)
Figure 76: Brand diversity, June 2013
Figure 77: Brand diversity, June 2013 (continued)
Figure 78: Brand satisfaction, June 2013
Figure 79: Brand satisfaction, June 2013 (continued)
Figure 80: Brand attitude, June 2013
Figure 81: Brand attitude, June 2013 (continued)
Figure 82: Brand image – macro image, June 2013
Figure 83: Brand image – macro image, June 2013 (continued)
Figure 84: Brand image – micro image, June 2013
Figure 85: Brand image – micro image, June 2013 (continued)
Figure 86: Profile of target groups, by demographics, June 2013
Figure 87: Psychographic segmentation, by target groups, June 2013
Figure 88: Brand usage, by target groups, June 2013
Brand index
Figure 89: Brand index, June 2013

Appendix – Product Ownership and Cross-Selling
Figure 90: Products held and cross-sales for savings account, by demographics, June 2013
Figure 91: Products held and cross-sales for credit card, by demographics, June 2013
Figure 92: Products held and cross-sales for cash ISA, by demographics, June 2013
Figure 93: Products held and cross-sales for home insurance, by demographics, June 2013
Figure 94: Products held and cross-sales for mortgage, by demographics, June 2013
Figure 95: Products held and cross-sales for personal loan, by demographics, June 2013
Figure 96: Products held and cross-sales for any stock market-based investment product, by demographics, June 2013
Figure 97: Products held and cross-sales for life insurance, by demographics, June 2013
Figure 98: Products held and cross-sales for car insurance, by demographics, June 2013
Figure 99: Products held and cross-sales for income protection/critical illness cover, by demographics, June 2013
Figure 100: Products held and cross-sales for business loan, by demographics, June 2013
Figure 101: Repertoire for products held with main current account provider, by demographics, June 2013

Appendix – Use of Retail Banking Channels
Figure 102: Frequency of use of various retail banking channels – In-branch counter services, by demographics, June 2013
Figure 103: Frequency of use of various retail banking channels – In-branch counter services continued, by demographics, June 2013
Figure 104: Frequency of use of various retail banking channels – In-branch advice services, by demographics, June 2013
Figure 105: Frequency of use of various retail banking channels – In-branch advice services continued, by demographics, June 2013
Figure 106: Frequency of use of various retail banking channels – Online banking, by demographics, June 2013
Figure 107: Frequency of use of various retail banking channels – Online banking continued, by demographics, June 2013
Figure 108: Frequency of use of various retail banking channels – Telephone banking, by demographics, June 2013
Figure 109: Frequency of use of various retail banking channels – Telephone banking continued, by demographics, June 2013
Figure 110: Frequency of use of various retail banking channels – Mobile banking, by demographics, June 2013
Figure 111: Frequency of use of various retail banking channels – Mobile banking continued, by demographics, June 2013

Appendix – Satisfaction with Retail Banking Providers
Figure 112: Satisfaction with existing banking provider, by demographics, June 2013

Appendix – Satisfaction with Retail Banking Services
Figure 113: Satisfaction with various retail banking services (rebased to exclude don’t know/not applicable to me), June 2013
Figure 114: Satisfaction with various branch-related retail banking services, June 2013
Figure 115: Satisfaction with remote retail banking channels, by main current account provider, June 2013
Figure 116: Satisfaction with other retail banking services, by main current account provider, June 2013

Appendix – Perceived Value of Retail Banking Services
Figure 117: Perceived value of various retail banking services, by main current account provider, June 2013
Figure 118: Perceived value of branch-related retail banking services, by main current account provider, June 2013
Figure 119: Perceived value of account management-related retail banking services, by main current account provider, June 2013
Figure 120: Perceived value of various retail banking services – Use of a debit card, by demographics, June 2013
Figure 121: Perceived value of various retail banking services – Online banking service, by demographics, June 2013
Figure 122: Perceived value of various retail banking services – Access to ATM at other banks, by demographics, June 2013
Figure 123: Perceived value of various retail banking services – Access to ATM at own bank, by demographics, June 2013
Figure 124: Perceived value of various retail banking services – Branch cashier services, by demographics, June 2013
Figure 125: Perceived value of various retail banking services – Access to advisers in branch, by demographics, June 2013
Figure 126: Perceived value of various retail banking services – Overdraft facility, by demographics, June 2013
Figure 127: Perceived value of various retail banking services – Extended branch opening hours, by demographics, June 2013
Figure 128: Perceived value of various retail banking services – Use of a chequebook, by demographics, June 2013
Figure 129: Perceived value of various retail banking services – Mobile banking service, by demographics, June 2013
Figure 130: Perceived value of various retail banking services – Telephone banking services, by demographics, June 2013
Figure 131: Perceived value of various retail banking services – Contactless cards, by demographics, June 2013

Appendix – Attitudes Towards Retail Banking
Figure 132: Agreement with the statement ‘Banks should be more open about their charges’, by demographics, June 2013
Figure 133: Agreement with the statement ‘People should shop around to find the best banking products’, by demographics, June 2013
Figure 134: Agreement with the statement ‘Banks provide a valuable service’, by demographics, June 2013
Figure 135: Agreement with the statement ‘Banks do not reward customer loyalty’, by demographics, June 2013
Figure 136: Agreement with the statement ‘There is no such thing as free banking’, by demographics, June 2013
Figure 137: Agreement with the statement ‘All banks are pretty much the same’, by demographics, June 2013
Figure 138: Agreement with the statement ‘Banks do not act in the best interests of their customers’, by demographics, June 2013
Figure 139: Agreement with the statement ‘I trust my bank to give me a fair deal’, by demographics, June 2013
Figure 140: Agreement with the statement ‘Banks should invest more in keeping up with technology’, by demographics, June 2013
Figure 141: Agreement with the statement ‘There is not enough competition between banks’, by demographics, June 2013
Figure 142: Agreement with the statement ‘There is little need to visit a bank’s high street branch anymore’, by demographics, June 2013
Figure 143: Agreement with the statement ‘High street branches are more important than online or mobile services’, by demographics, June 2013

Appendix – Expected Use of Current Account Switch Service
Figure 144: Likelihood of switching current account provider after launch of switching service, by demographics, June 2013
Figure 145: Likelihood of switching current account provider after launch of switching service, by demographics, June 2013 (continued)

Appendix – Current Account Switching – Consideration of Retail Banking Brands
Figure 146: Consideration of switching to various retail banking brands – Nationwide, by demographics, June 2013
Figure 147: Consideration of switching to various retail banking brands – NatWest, by demographics, June 2013
Figure 148: Consideration of switching to various retail banking brands – Santander, by demographics, June 2013
Figure 149: Consideration of switching to various retail banking brands – Barclays, by demographics, June 2013
Figure 150: Consideration of switching to various retail banking brands – HSBC, by demographics, June 2013
Figure 151: Consideration of switching to various retail banking brands – Halifax, by demographics, June 2013
Figure 152: Consideration of switching to various retail banking brands – Lloyds TSB, by demographics, June 2013
Figure 153: Consideration of switching to various retail banking brands – Virgin money, by demographics, June 2013
Figure 154: Consideration of switching to various retail banking brands – Post Office, by demographics, June 2013
Figure 155: Consideration of switching to various retail banking brands – Co-operative Bank, by demographics, June 2013
Figure 156: Consideration of switching to various retail banking brands – First Direct, by demographics, June 2013
Figure 157: Consideration of switching to various retail banking brands – Tesco Bank, by demographics, June 2013
Figure 158: Consideration of switching to various retail banking brands – M&S Bank, by demographics, June 2013
Figure 159: Consideration of switching to various retail banking brands – Metro Bank, by demographics, June 2013

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *

Upcoming Reports

  • Sugar and Gum Confectionery - UK - January 2015

    Rising dental health concerns can create an opportunity for chewing gum brands. Currently much of the marketing for sugar-free gums centres around fresh breath, however, the dental health benefits, particularly for children, could warrant more focus. Though explored internationally, tooth-friendly gums tailored for children remain rare in the UK market....