British consumers tend towards 'monogamous banking'
05 June 2003
Nearly seven out of 10 UK consumers either manage their banking from one single institution or would be prepared to if they could benefit from offset banking, according to a study for Intelligent Finance.
The ICM research shows that around 30 million British adults tend towards 'monogamous banking' and are willing to hold all their accounts, including their mortgage with one bank.
In a speech to the Institute of Economic Affairs today Grenville Turner, Chief Executive, said, 'This research confirms the powerful consumer appeal of offset banking and the rounded view it takes of people's finances.
'Offset banking allows people to opt for the convenience of holding all their day-to-day banking arrangements with one bank without having to sacrifice value for money in the process.'
The survey showed that 68 per cent of customers are willing to hold all their accounts with one bank if the bank took account of the money they have deposited there before charging them interest on the money they owe. 51 per cent of respondents already manage all their day-to-day financial accounts through one institution.
Intelligent Finance says that the ability of offset banking to crack the industry mould on product cross-holdings is confirmed by its own experience and it has seen a substantial increase in the proportion of customers bringing more than one product to it from day one. Customers' product cross-holdings at Intelligent Finance are 2.2 as opposed to an industry average of just 1.3.
IF suggests that consumers are seeking both convenience and value for money when organising their banking arrangements and nearly six out of ten people felt having all their accounts with one bank would make it easier to manage their day-to-day finances.
Half of those surveyed also said that holding their accounts with the same institution would give them a better overview of their finances; half that it would be an advantage to be able to switch resources more quickly between their accounts; and half that simply having less pin numbers to remember would be a distinct advantage.
Of those people who already use more than one bank, approximately one in four said they had taken out a product with another bank to take advantage of a better product offer. Intelligent Finance noted there was a significant disparity between the sexes with one in three men but only one in five women saying they had taken out a product with a different bank to snap up a better product offer.