Banked but not Hooked: Young people’s attitudes to banking A CSFI Report CSFI Centre for the Study of Financial Innovation CSFI The Centre for the Study of Financial Innovation is a non-profit think-tank, established in 1993 to look at future developments in the international financial field – particularly from the point of view of practitioners. Its goals include identifying new areas of business, flagging areas of danger and provoking a debate about key financial issues. The Centre has no ideological brief, beyond a belief in open markets. Trustees David Lascelles (Chairman) John Hitchins Mark Robson Carol Sergeant Sir Malcolm Williamson Governing Council Sir Malcolm Williamson (Chairman) Staff Director – Andrew Hilton Co-Director – Jane Fuller Events and Office Co-ordinator – Alex Treptow Funding and Publications Co-ordinator – Jack Kunkle Programme Co-ordinator – Leighton Hughes This CSFI publication is available through our website www.csfi.org or by calling the Centre on +44 (0) 20 7621 1056 Published by Centre for the Study of Financial Innovation (CSFI) Email: info@csfi.org Web: www.csfi.org ISBN: XXXXXXXXXXXXXXX Printed in the United Kingdom by Heron Dawson & Sawyer II CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI Contents Contents ................................................................................................................................................. III Foreword .................................................................................................................................................IV Summary ..................................................................................................................................................1 Personal profile .........................................................................................................................................1 Banking relationships ................................................................................................................................2 Payment methods ....................................................................................................................................2 Attitudes to banks ....................................................................................................................................3 Detailed results and charts .......................................................................................................................4 CSFI publications ...................................................................................................................................22 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org III CSFI Foreword It seems to be a common misconception among us older folk that young people are risk takers, love technology and prefer the new to the traditional. This survey of people aged from the late teens to 35 shows a surprisingly conservative profile. A quarter, for example, reckon themselves to be more risk averse than their parents. This should be good news for traditional ‘High Street’ banks, as they fight to hold on to their dominance of the personal banking market. They do, indeed, remain the main depository for salaries and they do retain ‘trust’. But the responses show two things that are not such good news for the traditional model. The first is weak demand for old-fashioned infrastructure, not just bank branches but call centres. This suggests expensive physical networks could become redundant even more quickly than expected – a trend the Covid-19 crisis may have accelerated. The second is the absence of enthusiasm for banks, evidenced by the lack of interest in engaging with them. So, the utility of current accounts for deposits and payments goes without saying, but this is not enough to guarantee either customer loyalty or that a traditional bank will be the first port of call for more lucrative services. provider. Technology has taken over to the extent that cash is almost redundant, and the preference for contactless payments exhibited by these young people has been amplified by the pandemic. Of course, traditional banks also provide the cards, as well as the infrastructure, for the digital world. But maintaining the plumbing is often not the most profitable line of business. The results of this survey show they are vulnerable to cherry picking of services by digital-only providers (for foreign exchange, for instance). The one perennial service where balance sheet heft matters for serving individuals remains mortgages. The desire of generation after generation of UK customers to own their own home never seems to dim. A future survey would ask more questions about where young people are going for a wider range of financial services – from insurance to saving – and about where they go for advice. Who will end up exploiting – in the nicest possible way – the trust that is still so valued when it comes to dealing with financial institutions? Jane Fuller Co-director, CSFI Many of the respondents have a second bank account, and that is more likely to be with a purely digital IV CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI Number 136 July 2020 Banked but not Hooked: Young people’s attitudes to banking Summary The CSFI conducted this survey to learn more about the younger generation’s relationships with the banking industry, in particular to see whether new attitudes were evolving that might affect the future of the retail banking market. The broad message is that while younger people favour modern methods of banking such as contactless cards and online banking, they still value traditional features such as trust and access to home ownership. Bank branches are little used, but cash still has a place. The big five banks – Barclays, HSBC, Lloyds, Natwest/ RBS and Santander – plus Nationwide building society continue to dominate the current account market, which means they remain the most likely depositories for salaries. However, 63% of respondents have accounts with online or ‘challenger’ banks, either as their main bank or – more likely at this stage – in addition. This survey showed a relatively small appetite for switching to the likes of Facebook or Amazon if the popular internet giants began to offer banking services. Online banking is the big winner in this survey, but that can apply to the online services of the ‘High Street’ banks as much as to their online-only challengers. However, respondents show little enthusiasm for or keenness to engage with banks, which may signify weak customer loyalty. The traditional needs of a banking customer remain clear: a safe place for salaries and from which to make payments. Future demand for mortgages looks secure thanks to the continued importance attached to home ownership. But the extent to which face-to-face contact is valued is moot, and where young people will go to satisfy the full range of their financial needs is up for grabs. Personal profile The survey was run from late 2019 to early 2020 via Survey Monkey and the respondents were self-selecting. It received 205 responses. Not all the respondents answered all the questions and the percentages referred to are of those who actually answered. The age range was from late teens to 35. Three quarters were in the 21-30 age group, with males accounting for just over half. Those in the sample were well educated. Just over 80% had undergraduate or postgraduate qualifications – the latter accounting for nearly 30% of respondents. A third had financial qualifications. They were relatively affluent, with 43% earning more than £40,000 a year. Reflecting the younger end of the age range, a fifth were earning less than £20,000. The sample could be broadly described as belonging to higher socio-economic groups. To learn more about their personal make-up we asked respondents about their attitude to risk. About half described themselves as having the same level of risk aversion as their peers. Of the rest, significantly more (28%) said they were less risk averse than the number describing themselves as more so (22%). Comparing their attitudes with their parents’, about 38% said they were less risk averse and about 36%, the same. A CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 1 CSFI significant minority – just over 25% – were more risk averse. The persistent desire to own a home was borne out by the 62% who said that this was important. Only one in five actually had a mortgage. Banking relationships The sample was well banked. Less than 10% said they did not have an account with a traditional or high street bank (some of these may have been with a ‘challenger’ only). The 174 respondents who listed where they held accounts had a total of 240 between them, an average of nearly 1.4 accounts each. or more in the previous 12 months. More than a third said ‘never’. The biggest group was the 43% who had done so once or twice – so a need is there but it is far from regular. Payment methods One of the striking findings of the survey was how little young people use cash. Asked how much cash they had on them at that very moment, nearly half said less than £5. Only one in 15 had over £50. Older groups tended to have more than younger groups. The big five banks – Barclays, HSBC, Lloyds, Natwest/ RBS and Santander – easily had the biggest share with a total of 178 accounts. The building society, Nationwide, and ‘other’ institutions accounted for about a quarter of the total number of accounts. The most popular means of payment for a coffee or snack was the contactless card from both high street and online banks, which 72% of respondents ranked first. Within that, contactless ‘High Street’ bank cards were more than twice as popular as those from ‘online’ banks. For a restaurant meal, the use of contactless cards, compared with cash or digital wallets, was even more pronounced. But the scale of young people’s interest in online and challenger banks was also clear in the 63% who said they had a current account with one of these. Asked to identify which one they were with, 60% of the 120 respondents listed Monzo and nearly 36% Revolut. There was no significant difference between age groups. While only a handful of respondents ranked cash first, nearly a third placed it second for both snacks and restaurant meals. Digital wallets, such as Apple Pay and PayPal, were first choice for 27% of respondents for a snack but dipped to 18% for the larger outlay. They were significantly more likely than cash to be ranked last. The endurance of banks as safe depositories for income was absolutely clear. Some 96% of those who were employed said that their salaries were paid directly into a bank account. Bank transfer was the most popular means of settling a small debt to a friend, followed by online payment apps and then cash. Paying by cheque was by far the least likely method. Younger people tended to go for cash more than older ones. However, personal contact with their banks was low. A quarter never visited a branch and nearly half only once or twice a year. Only a handful did so more than 10 times. Again, there was no significant difference between age groups. When travelling abroad, less than half obtained cash before departure. For those exchanging currency, bureaux de change were used by 62%. Once in a foreign country, over half used their debit cards and less than a quarter credit cards. Even the use of call centres was relatively low: less than a quarter had contacted their banks by phone three times 2 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI Attitudes to banks On their attitudes towards banks, respondents were asked to agree or disagree with a number of statements. 1. High street banks are more trustworthy than online banks. More agreed than disagreed with this statement at just over 33% compared with 21.5%. But with 45% neutral, this was hardly a ringing endorsement. It also reflects the dominance of the big five banks, plus Nationwide, in the accounts held numbers and as the places that salaries are paid into – a key sign that an institution is trusted. 2. Trust is really important in banking. More than 80% agreed. This indicates strong support for a traditional banking value and is in line with the earlier points about risk aversion: only a minority said they were less risk averse than either their parents or their peers. 3. I really need someone at my bank whom I can talk to. About 37% agreed with this statement, indicating continuing demand for the opportunity for faceto-face contact. Bearing in mind the low usage of bank branches, it is not clear that this contact has to be in person rather than on screen. Nearly a quarter disagreed – to the extent that they are seeking financial advice, they must be finding it elsewhere. With about 39% neutral, the majority are either happy with other, impersonal forms of communication with their banks or are disengaged. 4. High street banks really don’t understand what I need. Some 36% disagreed but, again, the high level of ‘neutrals’, at 56%, suggests a lack of enthusiasm on the part of young customers for the service they receive. The risk is that this translates into a lack of loyalty. There was, however, little evidence of strong dissatisfaction: fewer than 1 in 10 thought banks did not understand their needs. 5. I really don’t need a bank at all. There was strong disagreement – 87% – with this point. This suggests that young people still see a role for banks in their lives, particularly, as suggested by earlier responses, via current accounts as safe depositories for their salaries and for payments. Asked in a separate question whether they would switch to the FANGs (Facebook, Amazon, Netflix or Google) if these internet giants began to offer banking services, three quarters replied “unlikely”, though the younger age groups were more likely to than the older. CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 3 CSFI Detailed results and charts 1. Respondents We received 205 responses. Please state your age. CSFI Young People Personal Finance Survey Three quarters were in the 21-30 age group, 10% under 21, and 15% 31-35. The bulk were therefore in the early stages of work careers. Q1 Please state your age. Answered: 205 Skipped: 0 Under 21 21-30 31-35 Over 35 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Under 21 10.24% 21 21-30 75.12% 154 31-35 14.63% 30 Over 35 0.00% 0 TOTAL 4 205 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI CSFI Young People Personal Finance Survey What is your gender? There were slightly more male than female respondents. Q2 What is your gender? Answered: 204 Skipped: 1 Female Male 0% ANSWER CHOICES What is your 10% 20% 30% 40% country of origin? Just under half the respondents declared their country of Female Male origin. Of these, the great majority (70%) were from the 50% 60% 70% 80% 90% 100% RESPONSES 48.04%Islands. The response therefore can be UK and Channel taken to reflect conditions and attitudes in the UK. 98 51.96% 106 TOTAL CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 204 5 CSFI 2. Level of attainment CSFI Young People Personal Finance Survey The largest group of respondents earned more than What is your annual pre-tax personal £40,000 a year. These were in the higher age groups. income? By ‘personal income’ No-one in the Under 21 age group earned more than Q4 is your pre-tax personal By ‘personal income’ we What mean your totalannual income received £30,000income? a year. from all sources, including wages, we mean your total income received from all sources, including wages, bonuses, benefits or rents and before bonuses, benefits or rents and before tax deductions. Your data will be tax deductions. kept confidential and not passed on to any third parties. Answered: 200 Skipped: 5 Under £20k £20-30k £31-40k Above £40k 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Under £20k 20.00% 40 £20-30k 21.50% 43 £31-40k 15.50% 31 Above £40k 43.00% 86 TOTAL 6 200 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI undergraduate. A significant proportion (30%) were Please select the highest level of CSFI Young People Personal FinanceThe Survey postgraduates. proportion of secondary school academic qualification you respondents was 20%. The response therefore reflects a have completed. mainly well-educated social segment. The level of academic qualification achieved by Q5 Please select the highest the greatest number of respondents was university level of academic qualification you have completed. Answered: 205 Skipped: 0 Secondary school Undergraduate Postgraduate 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Secondary schoolof One third respondents had financial qualifications. These included professional certificates, diplomas, MBAs Undergraduate etc. 19.02% 39 51.22% 105 Postgraduate 29.76% 61 Financial qualification. TOTAL CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 205 7 CSFI 3. Attitudes to risk The largest group considered themselves to have a How risk averse do you CSFI consider Young People Personal Finance Survey similar attitude to risk as their peers. Smaller groups saw yourself relative to your peers, where themselves as less or more risk averse than their peers. 1 is ‘less risk averse’, and There was no clear connection between age and risk attitudes. relative to your peers, where is ‘more risk averse’? Q83 How risk averse do you consider yourself 1 is ‘less risk averse’, and 3 is ‘more risk averse’? Answered: 193 Skipped: 12 1 2 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES 1 28.50% 55 2 49.22% 95 3 22.28% 43 TOTAL 8 193 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI Young People Personal Finance Survey The results suggested that young people are, broadly, a How risk averse do you CSFI consider more adventurous generation. The greatest number saw yourself relative to your parents, where themselves as less risk averse than their parents, though 1 is ‘less risk averse’, and not by a large margin. Q9 How risk averse do you consider yourself relative to your parents, 3 is ‘more risk averse’? where 1 is ‘less risk averse’, and 3 is ‘more risk averse’? Answered: 193 Skipped: 12 1 2 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES 1 38.34% 74 2 36.27% 70 3 25.39% 49 TOTAL CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 193 9 CSFI 4. Home ownership CSFI Young People Personal Finance Survey How important is home ownership to Mortgages. One in five respondents had a mortgage, all in the higher you, where age groups. Nearly two thirds ranked home ownership as 1 isHow ‘important’, and is home ownership Q11 important to you,thewhere is ‘important’, and “important”, proportion1rising with age. 3 is ‘not important’? 3 is ‘not important’? Answered: 193 Skipped: 12 1 2 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES 1 62.18% 120 2 25.39% 49 3 12.44% 24 TOTAL 10 193 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI 5. Banking relationships Respondents were asked about their relationships with banks. The responses distinguished between traditional High street banks high street, and newer types of online or challenger banks. CSFI Young People Personal Finance Survey Which ones do you have a current/ Nine out of ten respondents had a current account with a traditional or ‘High Street’ bank. The pattern was the checking account with? same for all age groups. The banks were: Q13 Which ones do you have a current/checking account with? Select all Select all that apply. that apply. Answered: 174 Skipped: 31 Barclays HSBC Lloyd’s Nationwide Natwest RBS Santander Other (please specify) 0% The CHOICES “Other” category ANSWER and Citi. 10% 20% 30% included Halifax, Metrobank 40% 50% 60% 70% 80% 90% 100% RESPONSES Barclays 15.52% 27 HSBC 25.86% 45 Lloyd’s 15.52% 27 Nationwide 14.37% 25 20.69% Natwest CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org RBS 3.45% 11 36 6 CSFI CSFI Young People Personal Finance Survey Respondents had very little direct contact with their How often have you visited your bank’s bank. Three quarters of them visited a branch once branch in the past twelve or twice a year or never at all. There was no obvious months? Q14 How often have you visited your bank’s branch in and thevisitpast twelve connection between age groups frequency. months? Answered: 173 Skipped: 32 Never Once or twice Three to five times Five to ten times Over ten times 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Never 25.43% 44 Once or twice 47.98% 83 Three to five times 19.08% 33 Five to ten times 4.05% 7 Over ten times 3.47% 6 TOTAL 12 173 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI Challenger and online banks CSFI Young People Personal Finance Survey Nearly 63% of respondents said they had accounts with Which ones do you have a current/ an online or challenger bank. Older age groups were checking account with? more likely to have an account than under 21s. The Select all that apply. Q17 Which ones do you have a current/checking account with? Select all banks included: that apply. Answered: 120 Skipped: 85 Atom First Direct Metro Monzo N26 Revolut Starling Other (please specify) 0% The CHOICES “Other” category ANSWER Atom Oaknorth. 10% 20% 30% 40% included Paragon, Tandem and 50% 60% 70% 80% 90% 100% RESPONSES Salary payments. 95% of respondents 1.67% who were employed said their salary was paid into a bank, most often a high street bank. 2 First Direct 9.17% 11 Metro 4.17% 5 Monzo 60.00% 72 N26 1.67% 2 Revolut 35.83% 43 Starling 10.00% 12 Other (please specify) 10.83% 13 Total Respondents: 120 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 13 CSFI 6. Payment methods CSFI Young People Personal Finance Survey How much cash do you have in your Respondents made little use of cash. Nearly half of them had less than £5 on them at the time they responded to wallet/purse/pocket at the present the survey. Older respondents tended to have more cash Q20 Just for fun: How much cash do you have in your wallet/purse/pocket time? than younger. at the present time? Answered: 186 Skipped: 19 Less than £5 £5 to £10 £10 to £50 Over £50 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Less than £5 48.92% 91 £5 to £10 24.73% 46 £10 to £50 19.89% 37 Over £50 6.45% 12 TOTAL 14 186 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI When you buy a coffee or a snack, how The contactless card was the most likely method of CSFI Young People Personal Finance Survey payment used to buy a coffee or a snack, featuring in just do you pay? Please rank the over three of 10 small transactions in the case of high following payment methods in order of street bank card holders. This was followed by cash and frequency: digital wallet.do Theyou under 21s were more likely torank use Q21 When you buy a coffee or a snack, how pay? Please the cash than older age groups. following payment methods in order of frequency: Answered: 182 Skipped: 23 Cash Contactless High Street credit/ debit card Contactless online bank credit/ debit card Digital wallet (Apple Pay, Paypal, Google Pay, etc.) 0 1 2 3 4 5 1 Cash Contactless High Street credit/debit card Contactless online bank credit/debit card Digital wallet (Apple Pay, Paypal, Google Pay, etc.) 6 2 7 8 3 9 4 10 TOTAL SCORE 3.37% 6 32.58% 58 32.58% 58 31.46% 56 178 2.08 49.17% 89 28.18% 51 14.92% 27 7.73% 14 181 3.19 22.99% 40 28.74% 50 27.59% 48 20.69% 36 174 2.54 26.90% 46 12.28% 21 22.81% 39 38.01% 65 171 2.28 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 15 CSFI CSFI Young People Personal Finance Survey CSFI Young People Personal Finance Survey Asked how they would settle a £20 debt to a friend, Say you owe a friend £20. How likely is it that you would pay him or her back by respondents favoured the bank transfer where a score of 1 was most likely and 3 most unlikely. Cheques were Q26 Say owe a friend £20. How likely is itunlikely”, that you would pay him each of the you following methods, where considered even by older age groups. Q26 Say you owe a friend £20. How likely is“most it that you would pay him oror 1 her is ‘likely’, and back by each of the following methods, where 1 is ‘likely’, and 3 is her back by each of the following methods, where 1 is ‘likely’, and 3 is 3 is‘unlikely’? ‘unlikely’? ‘unlikely’? Answered: 186 Skipped: 19 Answered: 186 Skipped: 19 Cash Cash A bank transfer A bank transfer A check A check An online An onlineapp payment payment app 0% 1 16 0% 1 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2 2 3 3 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI 7. Foreign payment In order to exchange currency, did you use: CSFI Young People Personal Finance Survey Asked whether, when travelling, they changed money before leaving, just over half of respondents said no, and just under half said yes. Asked where they changed currency, most replied a bureau de change. Only a small proportion said a bank. The “Other” category mostly cited the Post Office. Q24 In order to exchange currency, did you use: Answered: 84 Skipped: 121 A retail bank A bureau de change An online FX service Other (please specify) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES A retail bank 7.14% 6 A bureau de change 61.90% 52 An online FX service 16.67% 14 Other (please specify) 14.29% 12 TOTAL CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 84 17 CSFI CSFI Young People Personal Finance Survey Paying for goods and services abroad. The debit card was the most popular method of payment Q25 When you were abroad, how did you pay for goods and services? Answered: 185 Skipped: 20 Credit card Debit card Exchanged money on the spot 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Credit card 21.62% 40 Debit card 53.51% 99 Exchanged money on the spot 24.86% 46 TOTAL 18 185 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI CSFI Young People Personal Finance Survey CSFI Young People Personal Finance Survey 8. Attitudes banks Q27 Toto what extent do you agree or disagree with the following statements, where 1 is ‘agree’, and 3 is ‘disagree’? with the following ‘disagree’? Q27were Toasked what extent do agreed you oragree or disagree Respondents to say whether they disagreed with a series of statements about banks.1Answered: 186 Skipped: statements, where is ‘agree’, and193 is 1=Agree, 2=Neutral and 3=Disagree. Answered: 186 Skipped: 19 High Street banks are more trustworthy than on-line banks Trust is really important in banking I really need someone at my bank whom I can talk to High Street banks really don’t understand what I need I really don’t need a bank at all 0% 0% 10% 10% 1 1 20% 20% 2 2 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 100% 90% 100% 3 3 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 19 CSFI 1. High street banks are more trustworthy than online banks. The largest group of respondents gave a neutral reply, though the tendency was towards agreement 2. Trust is really important in banking. This statement received a very clear endorsement of a traditional value. 4. High street banks really don’t understand what I need. Young people feel they get a hearing at their banks 5. I really don’t need a bank at all. Banks are seen to play an important part in young peoples’ lives. 3. I really need someone at my bank whom I can talk to. Three quarters were neutral or agreed. Young people want contact with their banks, even if at present they make little use of their bank branches. 20 CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org CSFI 9. Switching to FANGs? CSFI Young People Personal Finance Survey The answer was a resounding “unlikely”, with the If FANGs (Facebook, Amazon, Netflix strongest voice coming from the two older age groups. and Google) were to offer banking services, would(Facebook, respondents switch? Q28 If FANGs Amazon, Netflix, Google) were to offer banking 1services, is ‘likely’ and how likely would you be to shift your primary account? 1 is 3 is ‘unlikely’ ‘likely’ and 3 is ‘unlikely’. Answered: 186 Skipped: 19 1 2 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES 1 5.38% 10 2 18.28% 34 3 76.34% 142 TOTAL CSFI – 73 Leadenhall Market, London EC3V 1LT – Tel: 020 7621 1056 – E-mail: info@csfi.org – Web: www.csfi.org 186 21 CSFI Publications 136. Banked but not Hooked: Young people’s attitudes to banking A CSFI Report. July 2020 ISBN XXXXXXXXXXXXXXXXXXXX £30/$40/€35 135. Too little, too late? Housing for an Ageing Population By Professor Les Mayhew. June 2020 ISBN 978-1-9997174-9-0 £30/$40/€35 134. “The Digital Currency Revolution” By David Birch. April 2020 ISBN 978-1-9997174-8-3 133. “It’s not magic: Weighing the risks of AI in financial services” By Keyur Patel and Marshall Lincoln. November 2019 ISBN 978-1-9997174-7-6 £25/$45/€35 132. “Insurance Banana Skins 2019: The CSFI survey of the risks facing insurers” By David Lascelles and Keyur Patel. June 2019 ISBN 978-1-9997174-7-6 Free 131. “Making the Audit Market Work: the case for liberalising ownership” By Paul Boyle. April 2019 ISBN 978-1-9997174-6-9 £25/$45/€35 130. “The Last-Time Buyer: housing and finance for an ageing society” By Les Mayhew. February 2019 ISBN 978-1-9997174-5-2 £25/$45/€35 129. “Finance for All: Wedded to fintech, for better or worse” By Keyur Patel and David Lascelles. August 2018 ISBN 978-1-9997174-4-5 128. “The Dependency Trap – are we fit enough to face the future?” By Les Mayhew. January 2018 ISBN 978-1-9997174-3-8 £25/$45/€35 127. “A Level Playing Field for Investment Research? Challenges facing the buy-side, sell-side and independents” By Jane Fuller. October 2017. ISBN 978-1-9997174-2-1 £25/$45/€35 126. “Insurance Banana Skins 2017: The CSFI survey of the risks facing insurers” By David Lascelles and Keyur Patel. May 2017. ISBN 978-1-9997174-1-4 £25/$45/€35 125. “From Peer2here: How new-model finance is changing the game for small businesses, investors and regulators” By Andy Davis. May 2017. ISBN 978-1-9997174-0-7. £25/$45/€35 124. “Reaching The Poor: The intractable nature of financial exclusion in the UK” A CSFI Report. December 2016. ISBN 978-0-9926329-8-4. £25/$45/€35 123. “Getting Brussels Right: “Best Practice” for City firms in a post-referendum EU” A CSFI Report. December 2016. ISBN 978-0-9926329-7-7. £25/$45/€35 122. “Financial Services For All: A CSFI ‘Banana Skins’ survey of the risks in financial inclusion” By David Lascelles and Keyur Patel. July 2016. ISBN 978-0-9926329-6-0. 121. “Banking Banana Skins 2015: The CSFI survey of bank risk” By David Lascelles and Keyur Patel. December 2015. ISBN 978-0-9926329-8-4. £25/$45/€35 120. “The Death Of Retirement: A CSFI report on innovations in work-based pensions” By Jane Fuller. July 2015. ISBN 978-0-9926329-9-1. £25/$45/€35 119. “Insurance Banana Skins 2015: the CSFI survey of the risks facing insurers” By David Lascelles and Keyur Patel. July 2015. ISBN 978-0-9926329-5-3. £25/$45/€35 118. “The City And Brexit: A CSFI survey of the financial services sector’s views on Britain and the EU” April 2015. ISBN 978-0-9926329-4-6. £25/$45/€35 117. “Setting Standards: professional bodies and the financial services sector” By Keyur Patel. December 2014. ISBN 978-0-9926329-3-9. £25/$45/€35 116. “Financial Innovation: good thing, bad thing? The CSFI at 21” November 2014. 115. “New Directions For Insurance: Implications for financial stability” By Paul Wright. October 2014. ISBN 978-0-9926329-2-2. 114. “Microfinance Banana Skins 2014: Facing reality” By David Lascelles, Sam Mendelson and Daniel Rozas. July 2014. ISBN 978-0-9926329-1-5. 113. “Banking Banana Skins 2014: inching towards recovery” By David Lascelles and Keyur Patel. May 2014. ISBN 978-0-9926329-0-8. £25/$45/€35 112. “Insurance Banana Skins 2013: the CSFI survey of the risks facing insurers” By David Lascelles and Keyur Patel. July 2013. ISBN 978-0-9570895-9-4. £25/$45/€35 111. “China’s Banks In London” By He Ying. July 2013. ISBN 978-0-9570895-8-7. £10/$15/€15 110. “Batting For The City: Do The Trade Associations Get It Right? By Keyur Patel. June 2013. ISBN 978-0-9570895-7-0. £25/$45/€35 109. “Independent Research: because they’re worth it?” By Vince Heaney. November 2012. ISBN 978-0-9570895-6-3. £25/$45/€35 Free Free Free Free £25/$45/€35 Free Supporters The CSFI is an educational charity. It has no endowment income. It receives financial and other support from a wide range of public and private bodies, as well as from individuals. 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