1. 41113215 rj/ad/coc irish deposits: retail deposit market survey 16 th january 2015
TRANSCRIPT
1.41113215 RJ/AD/COC
Irish Deposits: Retail Deposit Market Survey16th January 2015
2.
• Methodology: Questions were included on Millward Brown’sOmnibus survey using face-to-face, in-home
methodology.
• SampleDescription: Nationally representative sample of all adults aged 25+ in
the Republic of Ireland. Quotas set on age, social class, gender and region to ensure a
representative sample.
• Sample size: n = 867 (nationally representative sample of 25+)
• Sampling Area: 66 sampling points nationwide, representative of the actual size and spread of urban and rural localities.
• Fieldwork dates: 15th December 2014 – 8th January 2015
• Objective: To gain consumer insight into the savings and deposit market
Research Methodology
3.
14
26
22
32
6
30
25
28
17
24
33
25
18
49
51
55
45
AB
C1
C2
DE
F
Rest of Leinster
Munster
Conn/Ulster
Gender%
Age%
Social Class%
Region%
Work Status%
Sample Profile of Irish Adults Aged 25+
Working
Base: All aged 25+ (n=867)
Male
Female
25-34
35-49
65+
Dublin
50-64Not working
5.
Bank of Ireland & AIB continue to dominate in saver numbers
Q.1a With which, if any, of these do you have a deposit or savings account, personally or jointly with someone else?
Base: All 25+ (n=867)
2014%
None
Other
2013%
Any Deposit/Savings Account
31
30
15
12
10
20
13
32
28
13
13
9
11
16
Credit Union 5%KBC 1%RaboBank 1%Nationwide UK *Danske/NIB *Investec *Barclays *Refused 4%
Credit Union 4%Danske/NIB 2%KBC 2%RaboBank 1%Nationwide UK 1%Barclays 1%Investec 1%Refused 1%
6.
Big 2 remain the main providers of deposit/savings accounts
Q.1a With which, if any, of these do you have a deposit or savings account, personally or jointly with someone else?Q.1b Which of those you have mentioned is your main deposit or savings account?
Base: All with a savings account (n=727)
2014%
Other
Main Deposit/Savings Account
33
29
12
11
6
1
8
Credit Union 5%Danske/NIB *Barclays *RaboBank *Investec *Refused 3%
7.
Word of mouth from friends and family is very important in choosing a deposit/savings account – Irish institution and security still play a part. Interest rate is only 4th reason
Q.2 What was the main reason you chose to open a deposit or savings account with your institution?
Base: with savings/deposit accounts (n=727)
28
14
11
7
5
4
4
1
1
18
2014%
Family/friends recommended it
Irish bank/institution
Security of that bank/institution
Interest rate/return
Government guarantee on deposits/savings there
Bank/institution's credit rating
Online/internet access/account
Non-Irish bank institution
Liked their advertising
Other
8.
Security of that bank/institution
Family/friends recommended it
Government guarantee on deposits/savings
there
Irish bank/institution
Interest rate/return
Bank/institution's credit rating
Non-Irish bank institution
Online/internet access/account
Liked their advertising
Other
Reason for Choosing x Main Bank
Q.2 What was the main reason you chose to open a deposit or savings account with your institution?
Base: Customers of each provider (main bank/institution)
30
16
11
6
4
4
4
1
-
23
(214)%
Family/friends recommended it
Irish bank/institution
Security of that bank/institution
Online/internet access/account
Interest rate/return
Government guarantee on deposits/savings
thereBank/institution's credit
rating
Liked their advertising
Non-Irish bank institution
Other
24
22
15
11
10
6
4
-
-
8
(43)%
Family/friends recommended it
Irish bank/institution
Security of that bank/institution
Government guarantee on deposits/savings
there
Interest rate/return
Bank/institution's credit rating
Online/internet access/account
Liked their advertising
Non-Irish bank institution
Other
33
18
12
5
5
5
4
2
1
16
(237)%
9.
30
12
10
9
8
6
6
3
-
15
Family/friends recommended it
Interest rate/return
Security of that bank/institution
Irish bank/institution
Non-Irish bank institution
Online/internet access/account
Government guarantee on deposits/savings
thereBank/institution's credit
rating
Liked their advertising
Other
Reason for Choosing x Main Bank
Q.2 What was the main reason you chose to open a deposit or savings account with your institution?
Base: Customers of each provider (main bank/institution)
(86)%
Family/friends recommended it
Irish bank/institution
Interest rate/return
Security of that bank/institution
Government guarantee on deposits/savings
thereOnline/internet access/account
Bank/institution's credit rating
Liked their advertising
Non-Irish bank institution
Other
30
14
10
8
2
2
1
1
-
31
(81)%
10.
Alternative Deposit Institution Choice
Q.3 If you were to choose to put deposits or savings with a bank other than one you have an account with, which bank would you choose?
2014%
None/Would not go to another
Base: All with savings/deposit account (n=727)
All others
19
19
14
8
7
12
21
Credit Union 4%KBC 2%RaboBank 2%NationwideUK *Danske Bank/NIB *Barclays *Investec *Don’t Know/Unsure 3%
11.
20
15
18
10
8
10
18
Alternative Deposit Institution Choice Steady Over Time
Q.3 If you were to choose to put deposits or savings with a bank other than one you have an account with, which bank would you choose?
2013%
None/Would not go to another
2012%
Base: All with savings/deposit account (n=727)
2014%
All others
19
19
14
8
7
12
21
21
17
16
10
6
13
17
Credit Union 4%KBC 2%RaboBank 2%Nationwide UK *Danske Bank/NIB *Barclays *Investec *Don’t Know/Unsure 3%
Credit Union 5%KBC 3%RaboBank 2%Danske Bank/NIB 1%Barclays *Nationwide UK *Investec *Refused 1%
Credit Union 4%RaboBank 3%Danske Bank/NIB 1%KBC 1%Other 1%
13.
Alternative Deposit Institution Choice Slow to Change
Base: Any Customer of Each Provider
% % % %
14 (16) - 8 (12) 16 (13)
13 (12) 15 (20) 14 (15) -
- 15 (10) 13 (10) 14 (10)
6 (8) 6 (6) - 7 (6)
4 (5) 3 (2) 4 (3) 5 (7)
Customers of Each Provider
Q.3 If you were to choose to put deposits or savings with a bank other than one you have an account with, which bank would you choose?
() = 2013 Figures
14.
An Post, Rabobank and KBC score more strongly on perceived best interest rates than market share. 4 in 10 see no difference between providers
Q.4 Which bank do you think offers the best interest rates on deposits or savings?
Base: All Adults 25+ (n=867)
None All the same
24%18%
15% 14% 6%
3%
Market Share = 29% Market Share = 33% Market Share = 12%
Market Share = 1%
Best Interest Rates on Deposits or Savings
3%Market Share = <1%
9%Market Share = 6%
5%Market Share = 11%
(11%) (11%) (12%) (8%)
(3%) (2%) (5%) (11%)
(27%)() = 2013 Figures
15.
AIB customers strongest in belief it offers the best interest rates
Base: Any Customer of each Provider
30% 32%
Q.4 Which bank do you think offers the best interest rates on deposits or savings?
Best Interest Rates on Deposits or Savings
44% 37% 33%
(26%) (24%) (29%) (39%) (17%)
() = 2013 Figures
16.
Bank of Ireland marginally ahead of AIB/EBS in terms of offering best customer service
Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts?
Base: All Adults 25+ (n=867)Best Customer Service for Deposits or Savings Accounts
None All the same
20%
14%
18% 6%
1%
Market Share = 29% Market Share = 12%
Market Share = 1%
1%Market Share = <1%
8%
Market Share = 6%
7%Market Share = 11%
20%
Market Share = 33%
17.
Customers see little difference in service for top 3 providers own customers. An Post lags here
Base: Any Customer of each Provider
Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts?
Best Customer Service for Deposits or Savings Accounts
31%47%56% 54% 54%
18.
Big two providers seen as best for online service for deposits or savings accounts
Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts?
Base: All Adults 25+ (n=867)
Best Online/Internet Service for Deposits or Savings Accounts
None All the same
25%17%
18%
1%
Market Share = 29%
Market Share = 1%
2%Market Share = <1%
6%
Market Share = 11%
19%
Market Share = 33%
8%
Market Share = 12%
4%Market Share = 6%
19.
AIB/EBS and ptsb thought to deliver on best online service to its own customers, particularly compared to BOI
Base: Any customer of each Provider
Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts?
Best Online/Internet Service for Deposits or Savings Accounts
17%42%54% 48%53%
20.
Big two regarded as best bank in marketplace as a whole
Q.4 Which bank do you think offers the best interest rates on deposits or savings?Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts?Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts?
Base: All Adults 25+ (n=867)BEST BANK (Average mentions across the 3 ratings)
17%
1%
Market Share = 29%
Market Share = 1%
2%Market Share = <1%
6%Market Share = 11%
18%
Market Share = 33%
7%
Market Share = 6%
7%
Market Share = 12%
21.
AIB/EBS customers afford it the best rating across 3 questions
Base: Any Customer of each Provider
Q.4 Which bank do you think offers the best interest rates on deposits or savings?Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts?Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts?
BEST BANK (Average mentions across the 3 ratings)
30%42%51% 45% 41%
22.
AIB/EBS main customers give it the edge across the 3 questions
Base: Main customer of each Provider
Q.4 Which bank do you think offers the best interest rates on deposits or savings?Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts?Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts?
BEST BANK (Average mentions across the 3 ratings)(Main Provider)
44%53%56% 50% 45%
23.Best Bank (Average mentions across the 3 questions) Indexed Vs. Market Share
%
Base: All Adults 25+ (n=867)
200
117
100
59
58
55
55
Rabobank outperforms market share strongly as best bank on the 3 ratings combined
24.
300
300
150
52
50
45
42
133
100
100
64
62
60
50
200
100
67
67
62
58
55
Rabobank and KBC outperform versus market share on interest rates. Rabobank also does well on online service
Best Interest Rates on Deposits or Savings
%
Base: All Adults 25+ (n=867)
Q.4 Which bank do you think offers the best interest rates on deposits or savings?Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts?Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts?
Best Customer Service for Deposits or Savings Accounts
%
Best Online/Interest Service for Deposits or Savings Accounts
%
26.
7%
34%
19%
38%
1%7%
19%
36%
34%
4%
Confidence in financial stability of Irish Banks has improved markedly over the past 12 months
Base: All Adults 25+ (n=867)
Who is more confident?
Males 39%Conn/Ulster Residents
46%
ABs 46%
Age 65+23%
Munster Residents
26%
C2s43%
Rest of Leinster Residents
43%
Munster Residents43%
Don’t knowWho is less confident?
No change in confidence
Refused
Q.7 Compared to 12 months ago, are you more confident or less confident about the financial stability of Irish banks?
2014 2013
More confident?
Less confident?
No change in confidence
Refused
Don’tknow
27.
19%
15%
66%20%
11%
69%
Knowledge of bank credit rating is rising slowly from low level, despite heavy media coverage
Q.8 Bank Credit Ratings range from AAA to C. Do you know what your main bank’s credit rating is?
Base: All Adults 25+ (n=867)
Not sure
Yes
No
White-collar households continue to be more knowledgeable of bank credit
rating
2014 2013
No
Not sure
Yes
ABs 36%Conn/Ulster Residents
24%
C2DEs72%
28.
Property is more popular than buying shares as an alternative to savings or deposits. Just over half the public would not consider any alternative product.
Q.9 Which, if any, of the following would you consider purchasing as an alternative to a deposit or savings account?
Base: All Adults 25+ (n=867)
12% 10%
3% 3% 3%
GuaranteedInvestment
BondGovernment
Bond
EquityFund
TrackerBond
PropertyFund
51%
None of these
8%23%
Buying Shares
Buying Property
ABs 30%Munster Residents29%
Age 50+ 16%Conn/Ulster Residents
17%
Age 65+ 14%ABs 17%
ABC1s 12%
ABs 7%Farming Community
8%
Farming Community12%
ABs 8%
29.
Key Results from this Survey
• Confidence in Irish financial institutions has undergone a marked positive shift over the past 12 months. There is still a lot of ground to be made up but this shift is to be welcomed as a sign of an economic recovery.
• The reasons for choosing a savings/deposit institution are rooted in recommendation by family/friends and perceived security. Rate is only placed 4th in this list of reasons. Government security is evidently a stronger reason for choosing An Post/State savings.
• AIB customers are the most convinced that their bank is the best (across the 3 ratings measured).
• An Post, Rabobank and KBC score more strongly on rates than their market share but it is intriguing that 4 in 10 see no difference between the institutions in rate terms.
• Rabobank outperforms on online service versus its market share too.• Still only 15% of those aged 25 or more know their bank’s credit rating
(although it is up 4% on last year). Those from higher white-collar backgrounds (ABs) are the most knowledgeable in this respect, reaching 36%.
• Overall, the survey indicates a more confident but still docile population of savers. Newer comers to the fray will need to continue to stress their differences versus the main two banks if they are to gain strong traction.
30.41113215 RJ/AD/COC
Irish Deposits: Retail Deposit Market Survey16th January 2015