Consumers' Attitudes to Home Finance and Technology

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

• Present banking techniques
• Use of ATMs
• Non-traditional financial services providers
• Home banking and shopping
• The Internet
• The Smart / Mondex card
• Europe

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?

"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."
28	All	62
	Age
37	Under 35	52
31	35-54	60
15	55+	75
	ATM Users
36	Regularly	57
28	Occasionally	68
13	Rarely	70
	Would use home banking
46	Now or in the next 5 years	45
31	In the future	60
16	Never	73
		Base: All adults (1017)

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?

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
	Base: All not using branch technology (312)

65% of adults think that machines have made banking easier for them. (See chart 3)

Chart 3: Statements about the technology at banks

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 knowDisagreeNeitherAgree

Base: All adults (1017)

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*
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

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
Base: All adults (1017)

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

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
	Current Account
	Other Financial Product
	Base: All adults (1017)

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?

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
	Base: All adults

Chart 8: Do you think you would use a shopping service available through your TV or PC?

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
	Base: All adults

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?

	Banking Shopping
Home via PC	29
	21
Home via TV	35
	47
Home - both	25
	25
Work	4
	1
Base: Those who think they may use home banking / shopping

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

Disagree		Agree
65	All Adults	17
	ATM Usage
60	Regular	23
62	Occasional	17
76	Rarely / Never	6
	Would use home banking
43	Do now / in next 5 years	37
61	In the near future	19
84	Not use	3
	Use of PC
50	Yes - Home	30
53	Yes - Any	28
75	No - None	8
Base: All who have heard of the Internet (904)

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

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 DisagreeDisagreeNeitherAgreeStrongly Agree

Base: All adults (1017)

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

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 DisagreeDisagreeNeitherAgreeStrongly Agree

Base: All adults (1017)

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

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
Base: All adults (1017)

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

Japan	46
USA	45
Hong Kong	33
Great Britain	23
Switzerland	21
Germany	19
Channel Islands	2
France	2
Australia	2
Base: All adults (1017)

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.