Download - Business Cheque Market Research 2010
Business ChequeMarket Research 2010
August 2010
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Scope of Presentation
■ 2010 update of research commissioned by C&CCC
■ Survey conducted by Continental Research since 2008
■ Survey covers:– Writing and receiving cheques– Reasons why cheques are used– Alternatives to using cheques– Attitudes to cheques– Knowledge of cheque propositions (2-4-6)
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Nature of the Research
■ Business omnibus survey of 520 businesses
■ Survey undertaken in April 2010
■ Northern Ireland included for the first time– 2010: Results for whole UK– 2008 & 2009: Results for GB only
■ Percentages quoted in the following slides can be considered accurate to +/- 5 percentage points
■ When comparing results for 2010 with those from previous years, a change of up to 10% from one year to the next may be the result of normal sampling variations, rather than being indicative of a real change in behaviour
Usage of Cheques
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Usage of cheques
■ 87% of UK businesses said that they had made payments by cheque in the past month
– 2009: 89% of GB businesses– 2008: 89% of GB businesses
■ 86% of UK businesses said that they had received payments by cheque in the past month
– 2009: 84% of GB businesses– 2008: 84% of GB businesses
■ Just 5% of UK businesses said that they had neither made nor received payment by cheque in the past month
– 2009: 7% of GB businesses– 2008: 4% of GB businesses
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Usage of cheques
■ Average of 22 payments made by cheque each month by businesses
– 2009: 22 cheques per month– 2008: 26 cheques per month
■ Average of 27 cheques received per month by businesses
– 2009: 22 cheques per month– 2008: 28 cheques per month
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Number of cheques written and received in the past month (UK, 2010)
0
20
40
60
80
100
120
£50k to £100k £100k to £250k £250k to £500k £500k to £1m £1m to £5m £5m to £20m £20m to £100m
Turnover
Ave
rage
num
ber o
f che
ques
WrittenReceived
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How use of cheques has changed over the past three years (UK, 2010)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All businesses <£1m turnover >£1m turnover
None of these
We now make a much smallerproportion of our payments by chequeWe now make a slightly smallerproportion of our payments by chequeThe proportion of payments we make bycheque has not changed much
We now make a slightly greaterproportion of our payments by chequeWe now make a much greaterproportion of our payments by cheque
Where cheques are used and their alternatives
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Payments for which businesses use cheques
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Pay a regular businesscommitment
Pay trade supplier Other ad hoc paymentsto businesses
Pay wages and salaries Other payments toindividuals
200820092010
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Convenient alternatives to using cheques
■ More than half of businesses think that there is a convenient alternative to using cheques for most purposes:
Use of cheques
Number of businesses in
sample identifying each use
% of those businesses identifying a
convenient alternativePay a regular business commitment 228 60%
Pay a trade supplier 385 60%
Other ad hoc payments to businesses
287 51%
Pay wages and salaries 110 39%
Other payments to individuals 186 55%
Note that the base size for the percentages in the final column is given by the number of respondents identifying each use for cheques, as shown in the second column
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Reasons why businesses use cheques
0%
10%
20%
30%
40%
50%
60%
Makes iteasier to
manage cashflow
Always haveused
cheques
Allows controlover who can
makepayments
Somerecipients
won’t acceptother
methods
Need to sendremittanceadvice by
post
Moneycomes out ofaccount more
slowly thanother
methods
Difficult to getaccount
details frompayees
Cheaper thanother
methods
Cheque maynot becashed
200820092010
Attitudes to cheques
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Businesses that would have problems if unable to write cheques
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
No problemsMinor problemsMajor problems
15
Preferences when receiving payment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
No preference expressed
Prefer cheques and ask to be paid bychequePrefer cheques but don’t try toinfluence payerDon’t mind how and don’t influencepayerPrefer not to get cheques but don’t tryto influence payerPrefer not to get cheques and try to getpayment another way
16
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
Disagree stronglyDisagree slightlyNeither agree nor disagreeAgree slightlyAgree strongly
Businesses’ willingness to accept cheques
53% of businesses agree that they are reluctant to accept cheques due to fears they may bounce
Cheque Propositions
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Businesses’ knowledge of propositions(compared to T+2, T+4, T+6)
Earlier11%
Earlier8%
Correct day23%
Correct day18%
Later50%
Later61%
Don't know12%
Don't know17%
Earlier57%
Earlier50%
Correct day27%
Correct day35%
Later10%
Later11%
Don't know6%
Don't know7%
Earlier82%
Earlier82%
Correct day2%
Correct day1%
Later6%
Later6%
Don't know11%
Don't know9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Fate 2009
Fate 2010
Withdrawal 2009
Withdrawal 2010
Value 2009
Value 2010
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Need for information about cheque clearing timings
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
Rarely use or receive cheques
Unsure about aspects of cheques,don’t think enough clear info isavailableKnow enough, but would like betterinfo available
Enough info available
Summary
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Summary
■ No significant changes compared to previous years
■ Half of businesses believe they are making fewer payments by cheque compared with 3 years ago
■ On average 55% of businesses think there are convenient alternatives to cheques for their specific uses
■ However, 78% of businesses believe they would encounter problems if they were no longer able to write cheques