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Online & Mobile Banking - Ireland - August 2017

Published By :

Mintel

Published Date : Aug 2017

Category :

Banking

No. of Pages : N/A

From tentative beginnings, online banking has established itself as the dominant and preferred channel for Irish consumers. With consumers living their lives increasingly online, it is only natural that this is extended to how they manage accounts and interact with their financial services providers.

Table of contents

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
Market factors
Increasing use of online banking among Irish consumers
More consumers online, more consumers using smartphones
Use of cash remaining steady, while cheque usage declining
Cheque usage continuing to decline in NI and RoI
The consumer
The internet is now the primary channel for managing accounts
Figure 1: Channels consumers use to access their current account and how often they typically use them, RoI and NI, April 2017
Online banking users not entirely convinced about apps over websites
Figure 2: Consumer preference on how to access their bank account via devices, RoI and NI, April 2017
Day-to-day banking activities being conducted via digital channels
Figure 3: Types of banking activities undertaken, by channel, RoI and NI, April 2017
Safety and security a major issue for consumers
Figure 4: Agreement with statements related to online banking, NI and RoI, April 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Increasing use of online banking among Irish consumers
More consumers online, more consumers using smartphones
Use of cash remaining steady, while cheque usage declining
Cheque usage continuing to decline in NI and RoI
MARKET DRIVERS
Online banking use continuing to grow in NI and RoI
Figure 5: Online banking penetration, UK (including NI) and RoI, 2005-16
Vast majority of Irish households have internet connection at home
Figure 6: Households with internet access, RoI and NI, 2010-17
UK (including NI) losses from online fraud down 24% in 2016
Figure 7: Online banking fraud losses, £m, UK (including NI), 2010-16
Figure 8: Online banking fraud losses, number of cases, UK (including NI), 2012-16
Majority own a smartphone, boding well for mobile banking
Figure 9: Ownership of or access to mobile technology devices, NI and RoI, April 2017
Cash usage stable in UK (including NI) and RoI in recent years
Figure 10: ATM cash withdrawals, value, € billion, RoI, 2005-14
Figure 11: ATM cash withdrawals, volume, millions, RoI, 2006-14
Figure 12: ATM cash withdrawals, value, £ billions, UK (including NI), 2010-16
Value and volume of cheque payments in steady decline in NI and RoI
Figure 13: Number of cheques cashed in the UK (including NI), actual and forecast, 1990-2025
Figure 14: Cheque payments, volume, millions, RoI, 2006-14
Figure 15: Cheque payments, value, € billions, RoI, 2006-14
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Payment Service Directive II (PSD2) set to be transposed into EU law in 2018
Competition and Markets Authority (CMA) echoes EU directive to UK banks
Large banks in Ireland beginning preparations for cashless future
WHO’S INNOVATING
Challenger bank Monzo starts to offer current accounts
TSB becomes first bank to introduce iris-scanning technology for mobile app access
Clarity Money aims to bring transparency to consumer finances
CashDash ATMs allow people to retrieve cash using their smartphone, bypassing debit cards
COMPANIES AND BRANDS
Allied Irish Bank
Key facts
Capabilities
Recent developments
Danske Bank
Key facts
Capabilities
Recent developments
Halifax
Key facts
Capabilities
Recent developments
KBC Ireland (RoI Only)
Key facts
Product portfolio
Recent developments
Nationwide
Key facts
Capabilities
Recent developments
Permanent TSB (RoI Only)
Key facts
Capabilities
Santander (NI Only)
Key facts
Capabilities
Recent developments
Ulster Bank
Key facts
Capabilities
Recent developments
Bank of Ireland
Key facts
Capabilities
Recent developments
HSBC
Key facts
Capabilities
Recent developments
THE CONSUMER – WHAT YOU NEED TO KNOW
The internet is now the primary channel for managing accounts
Online banking users not entirely convinced about apps over websites
Day-to-day banking activities being conducted via digital channels
Safety and security a major issue for consumers
FREQUENCY AND METHOD OF ACCESSING ACCOUNT
Near-universal ownership of current accounts in NI and RoI
Figure 16: Consumers who own a current account, RoI and NI, April 2017
Shift from branch to online now effectively complete
Figure 17: Channels consumers use to access their current account and how often they typically use it, RoI and NI, April 2017
Branches used by most consumers – but very infrequently
Figure 18: Consumers who use branches to access their current account and how often they typically use them, RoI and NI, April 2017
C2DEFs, 55+ and low earners most likely to use branches frequently
Figure 19: Consumers who use branches to access their current account at least once a week, by age, social class, income and daily internet usage, RoI, April 2017
Consumers aged 25-44 and ABC1s most inclined towards infrequent branch use
Figure 20: Consumers who use branches to access their current account less than every 3 months, by gender, age and social class, RoI and NI, April 2017
Consumers regularly and frequently accessing accounts online
Figure 21: Consumers who access their current account online via various devices once a week or more, RoI and NI, April 2017
Smartphones used by younger and more tech-savvy consumers
Figure 22: Consumers who access their current account online using a smartphone once a day or more, by gender, age and daily internet usage, RoI and NI, April 2017
Consumers aged 55+ and non-internet-savvy less inclined to use smartphones
Figure 23: Consumers who never access their current account online using a smartphone, by gender, age and daily internet usage, RoI and NI, April 2017
Full-time employees and ABC1s accessing regularly via PCs or laptops
Figure 24: Consumers who access their current account online via a PC/laptop 2-3 times per week, by work status and social class, RoI and NI, April 2017
Tendency to never use tablets increases with age
Figure 25: Consumers who never access their current account online via various a tablet computer (ie iPad), by gender and age, RoI and NI, April 2017
ACCESSING ACCOUNT VIA DEVICES
Just over half of smartphone-users access account via an app
Figure 26: Consumer preference on how to access their bank account via devices, RoI and NI, April 2017
Younger consumers most inclined to use mobile banking apps
Figure 27: Consumers who access their bank account online via smartphone via an app, by gender and age RoI and NI, April 2017
Although consumers aged 35-44 use websites on their smartphones
Figure 28: Consumers who access their bank account online via smartphone via a website, by gender and age RoI and NI, April 2017
Website over app use associated with lower online experience
Figure 29: Consumers who access their bank account online via tablet computer via a website, by daily internet usage, RoI and NI, April 2017
Figure 30: Consumers who access their bank account online via tablet computer via an app, by gender and age RoI and NI, April 2017
ACTIVITIES AND CHANNELS
Online channels the preferred option for account management
Figure 31: Types of banking activities undertaken, by channel, RoI and NI, April 2017
Branches still the preferred channel when help is needed
Figure 32: Channels used when seeking financial advice, RoI and NI, April 2017
Branch preferred when applying for loan or opening new account
ATTITUDES TOWARDS ONLINE BANKING
Security at the forefront of consumers’ views on online banking
Figure 33: Agreement with statements related to online banking, NI and RoI, April 2017
Young, tech-savvy most confident about mobile payments security
Figure 34: Agreement with statement, ‘I think that mobile payments are as secure as other payment methods‘, by age and devices in household, NI and RoI, April 2017
Accessing account via social media a step too far for all consumers
Figure 35: Disagreement with statement, ‘ I would be comfortable using a social media or messaging app (eg Facebook Messenger, WhatsApp) for accessing my bank accounts ‘, by age and daily internet usage, NI and RoI, April 2017
Concerns over device theft or loss similarly constant across ages
Figure 36: Agreement with statement, ‘ I am very concerned about my account security if my phone/tablet is lost/stolen (eg card details, address) ‘, by age and daily internet usage, NI and RoI, April 2017
Willingness to put up with inconvenience for sake of security
Figure 37: Agreement with statement, ‘I have found the security features of my online account troublesome (ie too many passwords/PINs)’, by age, NI and RoI, April 2017
And most would welcome additional features to enhance security
Figure 38: Agreement with statement, ‘I think biometric measures (eg fingerprints/iris scan) would help to improve online payment security’, by age and devices in household, NI and RoI, April 2017
Minority of consumers prepared to pay for enhanced security
Figure 39: Agreement with statement, ‘I would pay an annual fee to my bank for enhanced security against online fraud’, by age and social class, NI and RoI, April 2017
High-earners and 25-34s most likely to have been victims of fraud
Figure 40: Agreement with statement, ‘I have been a victim of online banking fraud in the last 12 months (eg credit card details compromised)’, by age and gross annual household income, NI and RoI, April 2017
Strong growth in use of online banking among all consumers
Figure 41: Agreement with statement, ‘I manage more of my finances online now compared to 12 months ago’, by gender and age, NI and RoI, April 2017
Only a minority have had difficulties using online banking in last year
Figure 42: Agreement with statement, ‘ I have had to contact my bank directly due to a problem/issue with my online banking accounts in the last 12 months’, by age and daily internet usage, NI and RoI, April 2017
ABC1s, younger consumers keen on expanded functionality of mobile banking
Figure 43: Agreement with statement, ‘I would be interested in being able to access financial advisers via smartphone/tablet features (ie Facetime, Skype, etc)’, by age and socio-economic background, NI and RoI, April 2017
Almost half would be comfortable with an online-only bank
Figure 44: Agreement with statement, ‘I am happy to use a current account provider who can only be accessed online’, by age and daily internet usage, NI and RoI, April 2017
Figure 45: Agreement with statement, ‘I am happy to use a current account provider who can only be accessed online’, by age and daily internet usage, NI and RoI, June 2012* and April 2017
Although a majority still prefer to occasionally visit a branch
Figure 46: Agreement with statement, ‘I prefer visiting branches for important financial issues (eg to arrange a mortgage/loan)’, by age and daily internet usage, NI and RoI, April 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Generational cohort definitions
Abbreviations

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