Minister McGrath publishes the Consumer Banking Sentiment Survey 2023 and Financial Consumer Protection Roadmap
- Foilsithe: 14 Meán Fómhair 2023
- An t-eolas is déanaí: 23 Meán Fómhair 2023
The Minister for Finance Michael McGrath has today published the Consumer Banking Sentiment Survey 2023.
Consumer Sentiment Banking Survey August 2023
This survey was conducted by Behaviour and Attitudes on behalf of the Department of Finance. A nationally representative sample of more than 1,500 individuals was obtained through face-to-face interviews to get an in-depth understanding of consumers’ experiences and perceptions of the retail banking sector in Ireland.
In terms of satisfaction with their main financial provider, over 1 in 3 (34%) state that they are very satisfied, an increase of three points. Overall satisfaction remains steady at 82%, with dissatisfaction being expressed by 6%, similar to 2022.
The survey results also report that the use of ‘fintech’ which includes a growing use of apps on smartphones and contactless payments by customers of traditional banks has increased as has a rise in the market share of “digital only” banking providers.
There is a belief that the levels of choice in the market is highest for savings accounts and lowest for mortgages (just 1 in 4 believe there is choice for the latter).
Minister McGrath also published today the Financial Consumer Protection Roadmap that will help ensure a coordinated focus remains on supporting and protecting consumers in this rapidly changing financial services and banking environment.
Financial Consumer Protection Roadmap September 2023
The purpose of this Roadmap is to bring together in one place, information on some of the consumer protection policies that are being developed to deal with the changing landscape in the provision of financial services.
It is important for consumers to have access to quality financial products and services; that they are supported in making informed decisions; that they are afforded appropriate protections; and, that they have access to redress mechanisms when harms occur.
Ireland is committed to adhering to the G20/OECD High-Level Principles on Financial Consumer Protection when developing policy at home and contributing to policy development in European and international fora.
On the publication of the Survey and the Roadmap, the Minister for Finance Michael McGrath stated:
“I welcome the results of the Consumer Sentiment Survey which provides important insights into the experiences and perceptions of consumers of the retail banking market and the broader financial services developments. I would like to express my thanks all those people who took the time to complete the survey.
“The world of banking is changing rapidly and the results of this survey bear that out. A growing number of people are availing of digital financial services and that trend is set to continue. We must ensure that we are prepared for this change and that ultimately customers continue to be protected.
“In that context I am also delighted to publish the Financial Consumer Protection Roadmap which places the citizen at the centre in the development of evidenced-based policy initiatives aimed at supporting consumers in what is a rapidly changing financial services ecosystem.”
Notes
Key results of the Consumer Banking Sentiment Survey
In terms of satisfaction with their main financial provider, over 1 in 3 (34%) state that they are very satisfied, an increase of three points. Overall satisfaction remains steady at 82%, with dissatisfaction being expressed by 6%, similar to 2022.
The survey results report that the use of ‘fintech’ which includes a growing use of apps on smartphones and contactless payments by customers of traditional banks has increased as has a rise in the market share of “digital only” banking providers.
Usage of apps outside the traditional sector has nearly doubled in the past year, with 1 in 3 now using such providers, almost exclusively driven by Revolut.
Four per cent of respondents now hold their main current account with Revolut, up from just 1% in 2022. However, the financial services provider is becoming more prominent as part of consumers’ repertoire; 1 in 3 (33%) now have some relationship with Revolut, compared to 18% in 2022.
82% agree that the services provided by ‘digital only’ banks are a good substitute for traditional banks.
The main appeal of ‘digital only’ providers versus the more traditional retail banks is that they offer instant money transfers (75% agree), free banking (55%), and a user-friendly app (37%).
Cash Withdrawals - ATMs still dominate in terms of cash withdrawals and have increased in popularity this year – they are now used by 78% of adults (up five percentage points). Cashback from retailers has slipped back slightly.
Most people said they have their main current account with either: AIB (41%); BOI (33%); or, PTSB (13%).
Level of choice in market- There is a belief that the levels of choice in the market is highest for savings accounts and lowest for mortgages (just 1 in 4 believe there is choice for the latter).
Around 9% have switched their current account (up five points since 2022) and 10% have switched mortgages (also up five points).
Among those who have switched current accounts, 37% found the process to be very easy. However, 1 in 5 experienced some difficulties.
Of those who have switched in the past 5 years, the key driver in 2023 was structural – the exit of two banks from the market.
G20/OECD High-Level Principles on Financial Consumer Protection
The agreed benchmark which OECD member countries aim to reach are the G20/OECD High-Level Principles on Financial Consumer Protection (“the Principles”). These Principles were revised and updated in 2022. The updated Principles were adopted by OECD Governments including Ireland on 12 December 2022.
Building on the existing Principles, the main policy changes to the updated Principles are summarised in the infographic and explained below:
- two new Principles (12 in total), that is, “Access and Inclusion” and “Quality Financial Products” because these concepts, which are important to a holistic approach to financial consumer protection, were not covered in the original Principles
- three new cross-cutting themes that are relevant to the consideration and implementation of each and all of the Principles, namely “Digitalisation”, “Financial Well-being” and “Sustainable Finance”, and to include references throughout the Principles to illustrate the cross-cutting themes
- incorporation of high-level lessons from the response to the COVID-19 pandemic throughout the Principles such as enhanced protections for consumers who may be vulnerable and a greater focus on tackling financial scams
OECD High-Level Principles Cross-Cutting Themes
The financial well-being of financial consumers and their resilience. Financial consumer protection policies should contribute to the overall financial well-being and financial resilience of consumers.
The impact, opportunities and risks of digitalisation and technological advancements for financial consumers. This includes considering the ways that consumers increasingly interact with digital financial products and services including crypto-assets and digital currencies, consumer behaviour in a digital environment, the impact of greater use of artificial intelligence, machine learning technology and algorithms.
The impact, opportunities and risks of sustainable finance for financial consumers. This includes considering that financial services providers are increasingly incorporating environmental, social and governance (ESG) and other sustainability-related factors into their operations, products and services, and growing consumer demand for such products.
For more information:
https://www.oecd.org/finance/high-level-principles-on-financial-consumer-protection.htm