Packaged Bank Accounts and Young Adults Insight Report 2015
Our latest collaboration with YouGov sheds new light on young people’s views on Packaged Bank Accounts (PBA) and Current Accounts (CA) in the UK.
We have worked alongside YouGov to focus on the key themes in young people‘s use and appetite for packaged bank accounts. With understanding the customer being at the heart of everything we do, this in-depth analysis is an extension of the annual YouGov Packaged Bank Accounts report and will help inform our development of products and services in the future as we continue to protect what matters most.
The digital native generation
The younger generation (18-34) demonstrates the lowest appetite for PBA of any age group, but interestingly those who do have a PBA are more satisfied with the service than their counterparts with a standard Current Account. The good news for banks is that high satisfaction with the product among this group, coupled with the relatively low penetration of PBAs represents both a challenge and an opportunity to capture these potential customers as they become more engaged with their finances.
Those with a PBA tend to be more financially engaged in general, being much more likely to have another financial product such as a savings account, credit card, ISA or mortgage.
The young don’t switch, but this will change
Seven in ten young people have never considered switching either their PBA or their CA. Of those PBA customers who have not considered switching, 15% would be open to the idea. With the Current Account Switch Service launched in September 2013 gaining familiarity among consumers, there is an opportunity for banks to capture this segment. As banks look towards increasing their market share, we expect the rate of switching to increase, and being able to offer packages that genuinely meet the needs of this group will make all the difference to those banks looking to grow their customer base via their PBA offering.
It comes as no surprise that travel insurance is the top product held by both young (18-34) PBA customers (69% of this group have it as part of their account offer) and CA customers of the same age (46% hold it as an independent product), although interestingly only 25% of non-packaged account holders have mobile phone insurance, compared to 67% of PBA customers. Conversely, CA customers rank much higher than PBA customers as holders of Gadget Insurance. As tablet and other gadget ownership continues to rise, we expect to see the demand for gadget insurance as part of PBAs increase, offering a more flexible option better suited to increased reliance on various devices that is an inherent part of the Connected Living revolution.
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For a full electronic version of the report please contact us selecting “Media”.