Banking and consumer behaviour 2014
Summary
Research by Behaviour & Attitudes for the National Consumer Agency found that many current account holders no longer qualify for free banking, influencing changes in payment behaviour and increased consideration of switching banks. The study also showed low levels of engagement with checking for better deals, limited switching activity and uncertainty among some consumers about whether they are being charged fees.Publication details
- Publication date:2 November 2014
- Industry:Financial and insurance services - L
- NACE code:Financial services (non-insurance) - L.64
Documents
Research report banking and consumer behaviourPDF | 3315 KBResearch report banking and consumer behaviour PDF | 3315 KB - Opens in new window
Key findings on banking fees and consumer behaviour
This study of banking and consumer behaviour was conducted by Behaviour & Attitudes on behalf of the National Consumer Agency. Key findings from this research include:
More than a third (34%) of current account customers said they no longer qualify for free banking and a result of this:
- 28% take out more cash when making withdrawals, almost double the figure (15%) from the previous year;
- 25% use their debit cards less often compared to 13% twelve months ago and 13% are using their credit cards more for routine transactions. Furthermore, approximately a third of consumers who no longer qualify for free banking said that they intend to use their debit card less often and/or switch to a bank that offers free banking or lower fees.
The research also found that:
- 57% of all current account holders have never checked to see if there is a better deal or package available elsewhere;
- 6% had switched their current account in the last twelve months with 8% planning on switching accounts in the next 6 months;
- 32% of current account customers can still avail of free banking, down from 37% in June 2013; and
- 1 in 7 (14%) of current account holders don’t know whether they are being charged fees.
