Monday 12 May 2008
The 1996 survey, conducted by MORI on behalf of ICL Financial Services, aims to break consumers' attitudes to new technology and the potential effect on banking services, home banking and the internet. Over one thousand adults (16+) were interviewed in a sample structure that was designed to be representative of the British population by sex, age, social class and religion.
Topics covered included
The results indicate a continuing, though gradual, increase in the acceptance of banking technology.
Present banking techniques
The annual survey revealed that almost two in three British adults (62%) say they have always used a bank / building society branch and do not see themselves changing their ways. Nevertheless 28% would be quite happy to change if there was a more convenient way of organising their finances; this is particularly true of those under 35 years of age (37% would change). (See chart 1)
Chart 1: Which one of these statements best describes your attitudes towards using a branch?
Base: All adults (1017)
| | "I have always used the branch but would be quite prepared not to if there was a more convenient way of organising my finances." | "I have always used the branch and don't see myself changing to any other way." |
|---|
| | % | % |
|---|
| All | 28 | 62 |
| Age |
| Under 35 | 37 | 52 |
| 35-54 | 31 | 60 |
| 55+ | 15 | 75 |
| ATM Users |
| Regularly | 36 | 57 |
| Occasionally | 28 | 68 |
| Rarely | 13 | 70 |
| Would use home banking |
| Now or in the next 5 years | 46 | 45 |
| In the future | 31 | 60 |
| Never | 16 | 73 |
There is a slight increase in the proportion of adults using the technology available at banks building societies - two in three (66%) currently use the technology to (62%) last year. The main reason for not using branch technology remains a preference for 'personal service' as quoted by 43% of the non-users of technology. (See chart 2)
Chart 2: Why don't you tend to use branch technology?
Base: All not using branch technology (312)
| | % |
|---|
| Prefer personal service | 43 |
| Prefer existing methods | 23 |
| Don't need it | 22 |
| Lack of security | 15 |
| Not comfortable with technology | 13 |
| Dislike it / too much trouble | 10 |
| No facilities available | 3 |
| Keep forgetting PIN | 3 |
65% of adults think that machines have made banking easier for them. (See chart 3)
Chart 3: Statements about the technology at banks
Base: All adults (1017)
It's quicker to use a machine than the counter service
Machines have banking easier for me
I prefer personal contact with bank staff rather than using a machine
There is more chance of a mistake being made if you use a machine
 Don't know |
 Disagree |
 Neither |
 Agree |
For the future, one in four adults (25%) would like to see an increase in the number of branches available. A similar proportion (23%) would like to see an increase in the number of ATMs. Telephone banking is supported by 19% (up from 10%) who say they would like to see banking services move this way in the future. (See chart 4)
Chart 4: Which one of the options would you most like to see banking services move towards in the future?
| | | 1995 | 1994* |
|---|
| | n | % | % |
|---|
| Increase number of branches | 25 | 26 | 27 |
| Increase number of ATMs | 23 | 32 | 28 |
| Increase telephone banking | 19 | 10 £ | 17 £ |
| Increase home banking | 7 | 11 | N/A |
| Increase postal accounts | 4 | N/A | N/A |
| Internet banking | 3 | N/A | N/A |
| Cable TV banking | 3 | N/A | N/A |
| Don't know | 16 | 21 | 28 |
| * Question phrased differently in 1994 |
| £ Telephone and Postal banking put together in 1995 question |
| Base: All adults |
Flexible opening hours (64%), friendly staff (61%) and not making mistakes on accounts (56%) are mentioned most often as the key service issues that should be addressed by banks and building societies. (See chart 5)
Chart 5: Most important 3 or 4 Bank / Building Society services
Base: All adults (1017)
| | % |
|---|
| Flexible opening hours | 64 |
| Friendly staff | 61 |
| Not making mistakes on A/Cs | 56 |
| Lack of queues in branches | 37 |
| Large ATM network | 34 |
| Good quality financial advice | 32 |
| Telephone banking | 20 |
| Large branch network | 14 |
| Banking from home | 9 |
One in three (36%) adults would like to receive more information on how to use automated services. Among these, the most
preferred method of receiving information is posted literature (54%) or a posted video (30%).
Use of ATMs
There has been an increase in the proportion of adults using ATMs. Currently, 60% say they have visited an ATM in the last month compared to 58% in 1995 and 49% in 1994. Almost half (48%) of those with credit, debit or cash cards say they are likely to use an ATM abroad.
35% would prefer to use home banking from home via the TV.
Non-traditional financial services providers
Around one in three (32%) would be willing to open a current account at a large supermarket if the service was available. One in four (25%) would do so at Marks & Spencer. 42% of respondents said they had a loyalty card. This is now more than credit card owners at 40%. (See chart 6)
Chart 6: Likelihood of Opening a Current Account / Take Out Financial Product
Base: All adults (1017)
| | Current Account | Other Financial Product |
|---|
| | % | % |
|---|
| A large supermarket | 32 | 21 |
| M & S | 25 | 20 |
| BT | 21 | 16 |
| Virgin | 20 | 19 |
| Local Electricity Co | 19 | 16 |
| BBC | 17 | 15 |
| British Gas | 17 | 15 |
| Microsoft | 8 | 12 |
| BP | 12 | 11 |
| Camelot | 9 | 8 |
| BSkyB | 8 | 8 |
Home banking and shopping
There has been an increase in the proportion of adults expecting to use a banking (31%, up from 24% in 1995) or shopping (27%, up from 18% in 1995) service through their personal computer (PC) or television (TV), within the next five years.
27% would consider changing their account
to a provider offering home banking.
13% of respondents expect to use a banking service (compared to 10% in 1995) and 14% expect to use a shopping service through their TV or PC in the next two years (compared to 8% in 1995). (See chart 7) and (chart 8)
Chart 7: Do you think you would use a banking service available through your TV or PC?
Base: All adults
| Yes | 1996 | 1995 |
|---|
| | % | % |
|---|
| Within the next 2 years | 13 | 10 |
| Within 2-5 years | 18 | 14 |
| Within 5-10 years | 9 | 8 |
| Over 10 years | 3 | 3 |
| In the future | 6 | 8 |
| No | 48 | 52 |
Chart 8: Do you think you would use a shopping service available through your TV or PC?
Base: All adults
| Yes | 1996 | 1995 |
|---|
| | % | % |
|---|
| Within the next 2 years | 14 | 8 |
| Within 2-5 years | 13 | 10 |
| Within 5-10 years | 5 | 6 |
| Over 10 years | 2 | 2 |
| In the future | 6 | 7 |
| No | 56 | 63 |
Of those who think they may use home banking, 35% would prefer to do it from home via the television, 29% from home via the PC, 25% would prefer to use both options and 4% would prefer to do it from work.
Of those who think they may use home shopping, 47% would prefer to do so via the television, 21% via the PC, 25% via both and 1% from work. (See chart 9)
Chart 9: Where would you prefer to do your banking / shopping?
Base: Those who think they may use home banking / shopping
| | Banking | Shopping |
|---|
| | % | % |
|---|
| Home via PC | 29 | 21 |
| Home via TV | 35 | 47 |
| Home - both | 25 | 25 |
| Work | 4 | 1 |
Respondents who think they may use home banking or shopping expect to use the following types of services:
- accessing a bank balance enquiry (66% via the TV, 51% via a PC)
- home shopping (59% via the TV, 35% via a PC)
- paying bills (57% via the TV, 43% via a PC)
- ordering a cheque book (45% via the TV, 35% via a PC).
One in four adults (27%) would consider changing their account to a provider offering home banking. Of those 29% consider a fee would be reasonable. The main advantages of this type of banking service are seen as saving time (49%), not having to go to the branch (28%), less effort (28%) and 24 hour access (11%).
The Internet
There is an increase in the proportion of adults who have heard of the Internet (88%, up from 65% in 1995). One in ten (11%) say they currently use the Internet.
Of those who have heard of the Internet, 17% agree they would be interested in using it for banking, and 74% agree it is an easy way of getting information about banks, building societies, and insurance providers. (See chart 10)
Chart 10: I'm interested in banking via the Internet
Base: All who have heard of the Internet (904)
| | Disagree | Agree |
|---|
| | % | % |
|---|
| All Adults | 65 | 17 |
| ATM Usage |
| Regular | 60 | 23 |
| Occasional | 62 | 17 |
| Rarely / Never | 76 | 6 |
| Would use home banking |
| Do now / in next 5 years | 43 | 37 |
| In the near future | 61 | 19 |
| Not use | 84 | 3 |
| Use of PC |
| Yes - Home | 50 | 30 |
| Yes - Any | 53 | 28 |
| No - None | 75 | 8 |
The Smart / Mondex Card
There has been a steady increase, since 1994, in the proportion of adults who say they would like a national identity card - 37% in 1994, 39% in 1995 and 44% in 1996.
Around one in three (31%) are favourable towards an electronic payment system that would eradicate cash, a similar proportion to 1995 (32%).
Europe
Four out of five adults (81%) that is difficult to think about a single European currency because politicians confuse the issue. Around two in three (64%) agree that a single European currency would make using a cashpoint abroad easier, with a similar proportion thinking it would be good for tourism.
Chart 11: Statements about single European currency
Base: All adults (1017)
It's hard to know what to think about a single European currency because politicians confuse the issue
A single European currency would make it easier to use a cashpoint abroad
A single European currency would be good for tourism
 Strongly Disagree |
 Disagree |
 Neither |
 Agree |
 Strongly Agree |
81% of adults agree it is difficult to know what to think about a single European currency as politicians confuse the issue.
Over half (54%) think a single European currency would save money when exchanging. 51% of all adults agree that control of the British economy would be through Germany or Brussels if a single currency were introduced. Just under half (45%) think it will only benefit big business. (See chart 12)
Chart 12: Statements about single European currency
Base: All adults (1017)
A single European currency will save money when exchanging
A single European currency will only benefit big business
Control of the British economy would be through Germany or Brussels if a single European currency were introduced
| Strongly Disagree |
Disagree |
Neither |
Agree |
Strongly Agree |
The vast majority of adults (73%) would not be confident banking with an organisation not based in this country, 23% say they would be confident. (See chart 13)
Chart 13: How confident would you be banking with an organisation not based in this country?
Base: All adults (1017)
When asked to select a country which offers the best banking service, 62% chose Great Britain followed by Switzerland, USA, Channel Islands and Germany. (See chart 14)
Chart 14: Which of these Countries' Banks or Building Societies do you think would provide the best services
Base: All adults (1017)
| | % |
|---|
| Great Britain | 62 |
| Switzerland | 32 |
| USA | 26 |
| Channel Islands | 20 |
| Germany | 16 |
| Japan | 12 |
| Hong Kong | 9 |
| Australia | 6 |
| Ireland | 5 |
| France | 4 |
| Spain | 2 |
Japan and USA are considered the most technologically advanced of the countries listed followed by Hong Kong, Great Britain and Switzerland. (See chart 15)
Chart 15: Which of these Countries' Banks or Building Societies do you think are the most Technologically Advanced
Base: All adults (1017)
| | % |
|---|
| Japan | 46 |
| USA | 45 |
| Hong Kong | 33 |
| Great Britain | 23 |
| Switzerland | 21 |
| Germany | 19 |
| Channel Islands | 2 |
| France | 2 |
| Australia | 2 |
One in five adults (18%) think confusion over European Monetary Union has done most damage to the British banking industry. A similar proportion think Nick Leeson and the Barings' collapse or the closing of bank branches has had the most impact. 12% think it is because of the banks' attitudes to customers.