Access to Banking
Ian Goodliffe
Who are CACI?
Working across the spectrum of business sectors, brands and languages to
help global brands optimise sales and marketing performance
CACI Inc. Founded in 1962
50+ years old
Turnover in excess of
$3.8 billion
Publicly traded on
NYSE
EMEA headquarters in
London
800 Staff
in the UK
Over 300 clients,
many international
Mixed delivery models to
suit client requirements
Data & insight at the heart
of everything we do
An Econsultancy Top 15
Digital Agency
The way we bank is changing
Total current account interactions
Total customer interactions
Total current account interactions
More ways to bank than ever before
PHYSICAL ACCESS
Bank branches are still pivotal for
customers but there are a number
of other ways to bank now –
including through the Post Office,
ATMs, mobile bank branches, and
TECHNOLOGY/BEHAVIOUR
cash back facilities
COMMUNICATION
Digital banking is becoming
Communicating with your bank,
increasingly popular, both on mobiles,
now often 24/7, is easier than ever
tablets and desktop computers. Access
before – including through
is driven by both by internet availability
telephone banking, SMS, email,
and willingness to adopt new
online chats, and using social
technology
media such as Facebook or Twitter
No-one left behind
As consumer behaviour changes and becomes more
digital, banks must still ensure that no-one gets left
behind.
For example, the average person aged 80+ is more
reliant on branches than other demographics:
• They visit a bank branch or post office 14.8 times a year,
compared to 8.5 visits for the average adult
• They use ATMs 63.8 times a year, compared to 60 visits for
the average adult
• Over 600,000 are registered for online banking with the main
UK high street banks
Source: CACI, GfK, Kantar
Source: BBA
Consolidation more than closure
•
In the last five years 1,921 bank branches (16.2%) have been closed. But:
– 93% of the areas that were served in 2010 by a bank branch still have one. That is because
60% of all closures have taken place in towns already served by a branch from the same
bank.
Additionally:
•
212 new bank branches have opened in the last five years by banks such as Metro Bank,
Handelsbanken, and Santander.
•
2,274 bank branches were refurbished between 2013-2014, which is nearly one in four UK bank
branches.
•
Banks have introduced alternative ways to bank, such as mobile bank branches visiting around
600 locations, and banking services delivered through over 11,500 Post Office branches
throughout the UK.
The average bank branch is 1.4 miles away
•
•
•
•
On average, people are 1.4 miles away from a bank branch.
In rural areas people on average need to travel 3.4 miles whereas in urban areas people
normally have to travel 1 mile.
On average that means most people can drive to a bank branch within 4.4 minutes.
However, now that all the major banks have signed deals with the Post Office, on average
people live 2.1 minutes away from somewhere where they can carry out basic banking
services, face to face.
*assumes travel by car, off-peak travel times
Convenience doesn’t always mean closest
•
•
Customers rarely choose to use their nearest branch, just like they rarely choose their
nearest supermarket or retail destination
Preference is often linked to brand, but can also be influenced by other factors such as
accessibility, size/range of offer, and proximity to other amenities
*assumes travel by car, off-peak travel times
Bank branches used less frequently
On average people go to their preferred retail
destination 60% more often than their
preferred bank branch – and will travel over
60% further to get there
*assumes travel by car, off-peak travel times
More choice for bank customers
• Bank customers are able to use
more than just bank branches to
access basic services.
• For example, customers can use
ATMs and Post Offices for
services such as taking out cash
and checking their balances.
*assumes travel by car, off-peak travel times
Banking services closer than the
local pub
•
If taken together (bank
branches, ATMs and Post
Office branches) these
banking services are on
average just 1.4 minutes
travel away – closer than the
local pub.
*assumes travel by car, off-peak travel times
99.9% of adults live within 20 minutes drive
time of a bank branch or post office
Full-range access within 20
minutes of a branch or post office
and reasonable internet
Digital access further than 20
minutes from a bank branch or post
office but reasonable internet
speed
98.9%
0.001
%
Physical access within 20 minutes
of a branch or post office but poor
internet speed
1.11%
Limited access further than 20
minutes from a bank branch or post
office and poor internet speed
0.002
%
Improving Digital Access
Internet
•Of the 49.4 million adults living within Great Britain, 1.1% have poor
internet access*
•There are pockets of poor digital access all over Great Britain, and not
just in rural areas
•In these areas, download speeds are 15 times slower (1.4Mbit/s) than
the national average (20Mbit/s)
•This equates to 530,000 adults with limited internet speed, of which
330,000 say they would be willing to bank online
•Superfast broadband is available to just 3% of the population, but
uptake is low
Mobile
•3G coverage (defined as >3 providers) fills in some of the gaps in less
remote areas
•This provides mobile internet access to 470,000 of the 530,000
people (88%)
•However large parts of Wales and Scotland, and small pockets of
England, still have poor digital access (63,000 adults in total)
*2Mbit/s is deemed an
acceptable speed for
day-to-day online activity
Providing Physical Access for the
Elderly
There are 3.1 million people aged 80+
in Great Britain – 6% of the entire
adult population
Of the 3.1 million people aged 80+ :
•2.8 million live within 0.5 miles of an
existing branch or post office
•A further 200,000 live within 0.5
miles of a free ATM
•A further 2,000 live within 0.5 miles
of a mobile bank route
97%
96%
90%
of people aged 80+
live within 0.5
miles of a branch,
post office, ATM or
mobile banking van
Conclusions
Support Vulnerable
Customers
Improve Digital
Infrastructure
Support Digital Capability
99.9% of adults can access basic
A suitable digital infrastructure is
The industry, consumer groups and
face to face banking services within
vital for customers to be able to
Government should support
20 minutes, but the industry is
bank digitally.
customers capability to bank
keenly aware that some customers
The Government should prioritise
digitally.
do not want or cannot use
the roll out of superfast broadband,
In particular, people who are less
technology to bank.
particularly in geographic areas
likely to use digital banking (such
Firms should continue to develop
where it would support access to
as the elderly), should be
ways to help these customers
banking and financial inclusion.
supported to help them feel
through initiatives like improving
3G and 4G coverage should also
confident in taking advantage of
services through the Post Office,
be prioritised as a means of
new ways to bank.
mobile bank branches, telephone
supporting digital financial
banking, and free-to-use ATMs.
inclusion.