1. 41113215 rj/ad/coc irish deposits: retail deposit market survey 16 th january 2015

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.



Government guarantee on deposits/savings

there







Other

Reason for Choosing x Main Bank


Base: Customers of each provider (main bank/institution)

30

16

11

6

4

4

4

1

-

23

(214)%







thereBank/institution's credit

rating



Other

24

22

15

11

10

6

4

-

-

8

(43)%





there






Other

33

18

12

5

5

5

4

2

1

16

(237)%

9.

30

12

10

9

8

6

6

3

-

15








thereBank/institution's credit

rating


Other

Reason for Choosing x Main Bank


Base: Customers of each provider (main bank/institution)

(86)%






thereOnline/internet access/account




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


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


() = 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?


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%


8%

Market Share = 6%


20%

Market Share = 33%

17.

Customers see little difference in service for top 3 providers own customers. An Post lags here


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?


Best Online/Internet Service for Deposits or Savings Accounts

None All the same

25%17%

18%

1%

Market Share = 29%

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%



18%

Market Share = 33%

7%

Market Share = 6%

7%

Market Share = 12%

21.

AIB/EBS customers afford it the best rating across 3 questions



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


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

%


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 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


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?


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?


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

1. 41113215 rj/ad/coc irish deposits: retail deposit market survey 16 th january 2015

Documents

savings account n

representative sample

main reason

sample size

sample profile of irish

bank of ireland aib

provider main bankinstitution

x main bankq