2015 Banking and Credit Card Survey - checkmyfile · 2019. 12. 2. · information held about them, and to guard against the increasing threat of identity theft; - to provide free

©Credit Reporting Agency Limited 2016

2015 Banking and Credit Card Survey


About Credit Reporting Agency

Credit Reporting Agency is the UK’s first internet based credit reference agency, aimed firmly at

serving consumers, rather than business users. It leads the UK market in the provision of online

credit file based services and provides consumers with easy access to information on three websites:

checkmyfile was first in the UK:

- to provide consumers with online access to their credit files;

- to offer consumers the ability to check their own credit score for free and to give plain English

explanations of how credit scoring works.

givemecredit was first in the UK:

- to match lenders to consumer credit ratings for free, using credit scores, to help consumers find

the cheapest deals and to reduce the risks of being declined;

- to publish fully independent reviews of credit card and loan lenders based on expert evaluation and

consumer feedback of customer service experience.

annualcreditreport.co.uk was first in the UK:

- to provide free annual credit reports to consumers to encourage more to check the quality of the

information held about them, and to guard against the increasing threat of identity theft;

- to provide free identity theft prevention services.

About this survey

Each year since 2005, Credit Reporting Agency has asked its customers to rate their bank or credit

card company.

Respondents are incentivised by an invitation to enter a prize draw. This year five respondents were

each randomly selected to receive a cash prize of £100.

Credit Reporting Agency uses the results to ensure that when suggesting financial institutions to its

customers on any of its websites, it can give a consumer focussed assessment of the service levels

likely to be provided.

By using credit scoring, it also ensures that applicants are matched to lenders who are most likely to

say yes, so the risks of being declined are minimised.

458 people took part in this survey. Responses were processed using surveymonkey.com and

analysed by Credit Reporting Agency.

This analysis was published on 19 February 2016.


Summary of Survey Results

This year’s survey results show that consumers continue to feel that the customer service provided

by banks and credit card providers is improving.

- Good news for banks and their customers; there has been a 10% year-on-year increase in service being seen as ‘excellent’ or ‘very good’, with fewer customers experiencing customer service issues. Good customer service is also reported as the main reason those surveyed stay with their bank.

- First Direct tops the poll for best customer service for the 8th year in a row. Last year’s runner up, Santander dropped to mid table, with Nationwide taking over in second place.

- Credit card providers on the whole also appear to be providing a better service, with an increase in the number of people rating their service as ‘very good’ increasing from 67% to 76% in 2015. American Express regains its position as the top rated credit card provider with an outstanding 96% of customers reviewing as ‘very good’ or ‘excellent’.

- Using mobile apps and online banking is now by far the most used method of banking, with a combined 91% of those surveyed using online methods over either telephone or in branch banking.

- Being turned down for products by their bank seems to be a growing issue for customers, rising from 2% in 2013 to 12% in 2015.

- Online access was cited as the main reason for credit card providers going up in their customers’ estimations, with 39% of people citing this as a positive change.

People appear to be feeling more positive about their finances than a year ago, with 49% in a better

position than in 2014. This compares to 36% of respondents in 2012, showing that there is a growing

trend of consumers feeling more in control of their finances.

As for financial goals in 2016, less people are interested in paying down debt, but instead are looking

to increase their savings, with 23% of respondents giving this as their main aim for the coming year.


Distribution of respondents to survey

Male, 61%

Female, 39%

Are you?

Under 21, 1%

21-34, 33%

35-44, 30%

45-54, 17%

55-65, 13%

66+, 7%

How old are you?


Online banking is now by far the most popular way of managing finances, with more than 70% of

respondents using it regularly. Somewhat surprisingly, only 20% of people said they regularly used

banking apps. Conversely, in-branch and telephone banking continue to become less popular, with

only 7% of those surveyed using their local branch regularly.

There has been a drop in the number of respondents staying loyal to their bank, with 38%,

compared to 44% last time around, having held their account for 11 years or more. This perhaps

shows that consumers are becoming less reliant on their first bank as a ‘forever’ option and more

savvy to offers and the relative ease of switching.

In branch, 7%

Online banking, 71%

Mobile banking app, 20%

Telephone banking, 2%

Which method of banking do you use most?

9%

18%

34%

38%

under 1 year

1-3 years

4-10 years

11 years or more

0% 10% 20% 30% 40% 50%

How long have you been using this as your main account?


Perhaps explaining why customers seem happier overall with their bank, good customer service is

now the top reason for staying loyal, as opposed to simply always having banked with them which

has been the popular response in the past. Good online banking remains important to customers,

but there are still people (8%) who stay simply because they can’t be bothered to move provider.

1%

3%

3%

3%

3%

3%

4%

4%

5%

5%

5%

6%

8%

13%

17%

18%

Good customer service

I've always banked with them

I just can't be bothered to switch banks

I get a good interest rate on my credit balance

The overdraft is relatively cheap to use

My poor credit rating means I can't get a…

I'm stuck with them due to the size of my…

It's linked to my mortgage

I was lured in by a joining incentive and haven't…

Their ethical policy is important to me

I get a monthly reward

Good online banking

The convenience of my local branch

I work there (or used to)

The additional account benefits (e.g. travel…

Other reason

0% 5% 10% 15% 20%

What is the main reason you are with your current bank?


A common reason for a bank going down in an individual’s estimations is not getting help when it is

really needed. Far less people cited bad customer service as a reason for their bank going down in

their estimations (21% in 2014 compared to 10% in 2015). Being turned down for a particular

product appears to be a growing contention – this increased from 2% in 2013 to 7% in 2014 and is

12% in 2015.

No -it's pretty much the same as it was,

66%

Yes - I think is has improved, 24%

Yes - I think it has got worse, 10%

Has the service provided by your bank changed significantly in the last 12 months?

2%

5%

7%

10%

10%

10%

12%

21%

24%

They didn't help me when I really needed it

My overdraft limit has been cut or has got more…

The customer service has got worse

Repeated mistakes

My local branch has closed

The interest rate I earn has been cut

They turned me down for another product

Poor online banking/mobile app

Other

0% 5% 10% 15% 20% 25%

Why has your bank gone down in your estimation?


Account benefits are cited as a main reason for customers being happier with their bank, up from

18% in 2014 to 22% in 2015.

More people than ever have at least one credit card, with 85% of respondents now having at least

one.

4%

10%

15%

18%

22%

30%

They gave me help when I really needed it

Their customer service has noticeablyimproved

The account benefits have improved

The overall image of the bank has improved

Borrowing has got cheaper/charges havebeen reduced

Other

0% 10% 20% 30% 40%

What is the main reason you are happier with your bank?

Yes, 85%

No, 15%

Do you have at least one credit card?


There has been a significant drop in the number of people not deeming their credit rating good

enough to get a credit card, with 33% citing this as a reason, compared with 45% last year. There has

also been an increase in people avoiding credit cards all together over concerns about staying in

control of their spending, with 18% giving this as a reason, compared to 11% last year.

More people are using their credit cards for day-to-day spending, with 67% now doing this, up from

59% in 2014.

I just don't need one, 43%

My credit rating means I can't get one,

33%

I'm worried about staying in control of my spending, 18%

I used to have one, but the card isssuer closed the account,

6%

Why don't you have a credit card?

I use it regularly to pay for good or services,

67%

It's only there as an emergency back-up,

16%

I'm just paying off a previous balance, 15%

I only use it for work expenses, 2%

And do you use it regularly, or just as an emergency back-up?


Less people are using cards purely for convenience, dropping from 16% in 2014 to 12% this year,

with more customers now more interested in higher limits, cashback/rewards and introductory

offers.

More people say that their card provider has gone up in their estimations this year, increasing from

10% in 2014 to 15% in 2015.

4%

5%

5%

5%

6%

8%

9%

11%

11%

12%

12%

12%

The standard APR is very competitive

Good online account management

The added purchase/fraud protection it…

It is issued by my current account provider

It's the only one I need

It has a 0% introductory offer on purchases

Other

It has a good rewards programme

It has a high credit limit

Convenience

It pays cashback on purchases

It's the only one I could get

0% 2% 4% 6% 8% 10% 12% 14%

What is the main reason you use this particular card most?

No, not really, 74%

Yes, they have gone up in my estimation,

15%

Yes, but they have gone downhill in my

opinion, 11%

Has your opinion of your main credit card provider changed significantly in the last 12 months?


In 2015, more people said that there wasn’t help offered from their credit card provider when they

most needed it, leading to their opinion dropping – increasing to 26% from 17% in 2014. Charges

and APR increases were also quoted as bones of contention.

Lack of help when I really needed it, 26%

Generally worse customer service, 21%

My standard APR was increased, 18%

Too many charges, 18%

Repeated mistakes, 13%

Poor treatment of a friend/I've heard bad things about them

elsewhere, 3%

Why has your opinion of your credit card provider gone down?


Almost 40% of customers cited improved online banking as the reason for increased satisfaction in

2015, as more providers focus on online banking and apps.

Online account management has

improved, 39%

They helped me when I really needed it, 23%

General improvement in customer service,

14%

They've given me the credit limit I needed,

13%

Their rewards programme has improved, 7%

They've reduced my standard APR, 4%

What is the main reason your credit card provider gone up in your estimation?

No, 58%

Yes, 43%

Have you applied for a new bank or credit card in the last 12 months?


While a similar proportion of those surveyed applied for a credit card in the last year, a far lower

percentage were declined at 20%, down from 35% in 2014.

I was accepted, 80%

I was declined, 20%

And was your application approved or turned down?

No, I don't feel that strongly., 62%

Yes there is, 38%

Based on personal experience, is there a particular bank or credit card that you will never use again or recommend to a

friend?


No single card issuer stood out when it came to strong negative feelings, though a number of the

‘larger’ providers were singled out.

Very poor customer service remains the main reason for bad feeling towards credit card providers.

1%

1%

1%

1%

1%

2%

2%

3%

3%

4%

4%

5%

6%

6%

7%

8%

11%

11%

11%

14%

Sainsbury's Bank

Virgin

Yorkshire Bank

First Direct

Tesco

Cooperative Bank

Nationwide

American Express

Aqua

Bank of Scotland

Capital One

Barclaycard

Halifax

Lloyds TSB

MBNA

Barclays Bank

HSBC

Natwest

Vanquis

Santander

0% 2% 4% 6% 8% 10% 12% 14% 16%

Which company is responsible for your strong feelings?

1%

1%

2%

2%

3%

4%

4%

11%

13%

13%

19%

28%

They give ridiculously low credit limits

Poor credit credit scoring/irresponsible lending

Lack of branches/personal touch

Constant selling of other, unwanted products

Aggressive debt chasing or selling on of debts

Repeated mistakes, for example with Direct Debits

No reward for being a loyal customer

Excessive and unfair charges

Ridiculously high APR

They offered no understanding or assistance when I…

Complete incompetence

Very poor customer service

0% 10% 20% 30%

Is there a particular reason for your strong negative feelings?


There appears to be a positive trend of financial situations improving, with 49% now feeling in a

better position than a year ago. This is up from 36% of those surveyed in 2012, as people continue to

feel in a better position financially.

I'm in a better position, 49%

My finances are much the same as they were

a year ago, 30%

I'm in a worse position, 15%

I'd rather not say, 6%

Would you say that your finances are in a better or worse position than a year ago?


In 2016, far fewer people plan to pay off debt, dropping from 38% in 2014 to 28% this year. Though

more people are looking to either mortgage or re-mortgage in the next 12 months, 23% of

respondents also hope to use 2016 to save more money.

29%

23%9%

9%

9%

7%

6%5%

2% 1%

What would you say your main financial goal for 2016 is?

I'm aiming to pay off debt

To generally increase my savings

Buy my first home

I've got no particular plan/goal

I want to improve my credit rating

I'm saving towards a big holiday orother big purchaseBuy a new home

Remortgage to a better deal

I want to get a car loan

Documents

2015 Banking and Credit Card Survey - checkmyfile · 2019. 12. 2. · information held about them, and to guard against the increasing threat of identity theft; - to provide free