Uploaded by david

Young Peoples Attitudes to Banking 07-20 v2

advertisement
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. Among the institutions that have provided the Centre with financial support are:
Accenture
Arbuthnot
Citi
City of London
Deloitte
HSBC
JPMorgan
London Stock Exchange Group
Moody’s
PwC
Royal Bank of Scotland
Ruffer
Swiss Re
Tradeweb
ACCA
Association of British Insurers
Aviva
Bank of England
Bank of Italy
Brunswick Group
Building Societies Association
Euroclear
Eversheds Sunderland
Federated Hermes
Financial Conduct Authority
Gate One
ICMA
IHS Markit
Investment Association
Link Scheme Holdings Ltd
Jersey Finance
Legal & General
LendInvest
Lloyds Banking Group
Meiji Yasuda
Morgan Stanley
Nomura Institute
Orrick
Oxera Consulting
PIMFA
Record Currency Management
Schroders
Triple Point
UK Finance
Wipro
World Federation of Exchanges
3 Lines of Defence Consulting
Absolute Strategy
AFME
Association of Corporate Treasurers
Bank of Japan
Brigade Electronics
Chartered Banker Institute
C. Hoare & Co.
CISI
CMS
Cognito Media
EBRD
Embassy of Switzerland
Endava
ETF Securities
Euro IRP
EVIA
Fairbanking Foundation
Farrer & Co
Finance & Leasing Association
Greentarget
Hardman & Co.
HM Treasury
Intrinsic Value Investors
Ipsos MORI
Kreab Gavin Anderson
MacDougall Auctions
Meritus Consultants
Money Advice Service
NM Rothschild
Nutmeg
OMFIF
Raines & Co
Sapience Communications
Skadden, Arps, Slate Meagher & Flom
Taiwan Financial Supervisory Commission
TheCityUK
Zopa
Z/Yen
The CSFI has also received support in kind from, inter alia
Allen & Overy
Burges Salmon
Charles Russell Speechlys
Clifford Chance
Dentons
DLA Piper
UK £30
US $40
EUR €35
CSFI ©2020
Financial Times
The London Institute of Banking & Finance
Kemp Little
Linklaters
Norton Rose Fulbright
Registered Charity Number 1017352
Registered Office: North House, 198 High Street, Tonbridge, Kent TN9 1BE
Registered in England and Wales limited by guarantee. Number 2788116
Download