Bank On Your Brand

Internet banking research from ICL/MORI reveals the British public prefer 'clicks and mortar' banking and most won't use internet banks based outside the UK

Research launched today by ICL, the IT services company, finds that 82% of the British public would not bank over the internet with an organisation based outside the UK, despite the global nature of the internet. The research also shows that only 8% of those surveyed believe a 'funky' image and cool branding are important when choosing an internet bank. The survey, carried out by MORI on behalf of ICL, explores the general attitudes of British people towards internet banking and associated branding.

Do people care about established banks when banking online?

• More than half (57%) of those surveyed say it is important for an internet bank to have a high street presence (called a 'clicks and mortar' bank). Only 20% regarded a high street presence behind the internet bank as not important.
• Of those respondents who in the last year had enquired about financial services over the internet, over three-quarters (77%) would prefer to bank with an internet bank that had an established high street bank behind the service.
• Amongst the British public there is concern about using an internet bank based outside of the UK. Four out of five people (82%) would not feel confident using a bank without a UK base.

Thomas Burke, marketing director for ICL's Lifestyle banking commented: "Even in these times when there is almost complete awareness of the internet and increasing access from the home, the issues of trust and security prevail when using financial services online. This puts the established high street names in a very strong position to build on these strengths. However, some banks are failing to recognise the value that they may have with their existing brand."

Is branding important for internet banks?

A number of financial organisations have launched internet services recently with a significant investment in branding and advertising to promote a new brand name. The ICL research asked people about aspects of image:

• Only 8% believed that a 'funky' image and cool branding were important when choosing an internet bank.
• When asked if they recognised online brand names, more people had heard of Egg (56%), the internet bank, than Yahoo (42%), the internet search engine and Amazon (29%), the online retailer, traditionally considered the two biggest internet brands. Nearly three-quarters (73%) of those who had heard of Egg knew that the company offered online financial services.
• Only 19% of respondents had heard of Smile, the internet bank from the Co-operative, many of whom were in the 21-24 age group. Of those who had heard of Smile, just over a half (56%) recognised it as an online financial services provider.

Thomas Burke continued: "People know what they are getting from an established name and these results suggest it is important not to hide the strength of an existing brand. Online financial services organisations should concentrate on growing their brand recognition by providing the highest levels of customer service through availability 24-hours a day, increased functionality and security."

Perception of those who use internet banking

The general perception among respondents was that people most likely to use internet-based banking services were bargain hunters short on time.

• More than half the respondents (52%) think internet banking services are for people with little time.
• 42% believed those looking for the best deal would opt for internet banking. The findings indicate that people equate online banking with speed, efficiency and value for money.
• 35% of people still believe internet banking is for computer nerds.

Technical details

ICL is Europe's leading provider of e-Business services to the financial sector and commissioned MORI as part of its ongoing research into people's attitudes to internet banking. ICL develops services that will help financial organisations increase customer service and loyalty - crucial factors if banks are to survive in the online world. ICL's services allow people to manage their finances 'anytime, anyplace, anywhere' through access channels such as mobile phones, interactive TV, and the internet.

In February 2000, MORI Financial Services conducted 2,193 face-to-face interviews with respondents across Britain. The interviews were carried out across 146 sampling points, using Computer Assisted Personal Interviewing (CAPI).

Quota sampling was used to ensure that the demographic profile of the sample matched the actual profile of the country and was found to be representative of the British population by sex, age, region, social class and working status. The sample is representative of all adults in Great Britain aged 16+.