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

Publicly traded onNYSE

Over 300 clients,many international

An Econsultancy Top 15Digital Agency

Turnover in excess of$3.8 billion

800 Staffin the UK

Data & insight at the heart of everything we do

CACI Inc. Founded in 196250+ years old

EMEA headquarters inLondon

Mixed delivery models to suit client requirements

The way we bank is changing

Total current account interactions

Total current account interactions

Total customer interactions

More ways to bank than ever before

TECHNOLOGY/BEHAVIOUR

Digital banking is becoming

increasingly popular, both on mobiles,

tablets and desktop computers. Access

is driven by both by internet availability

and willingness to adopt new

technology

COMMUNICATION

Communicating with your bank,

now often 24/7, is easier than ever

before – including through

telephone banking, SMS, email,

online chats, and using social

media such as Facebook or Twitter

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

cash back facilities

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 Source: CACI, GfK, Kantar

• Over 600,000 are registered for online banking with the main UK high street banks Source: BBA

No-one left behind

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

Physical access within 20 minutes of a branch or post office but poor internet speed

Limited access further than 20 minutes from a bank branch or post office and poor internet speed

98.9%

0.001%

1.11%

0.002%

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)

Improving Digital Access

*2Mbit/s is deemed an acceptable speed for

day-to-day online activity

Providing Physical Access for the ElderlyThere 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

90%96%97%of people aged 80+ live within 0.5 miles of a branch,post office, ATM or mobile banking van

Conclusions

99.9% of adults can access basic

face to face banking services within

20 minutes, but the industry is

keenly aware that some customers

do not want or cannot use

technology to bank.

Firms should continue to develop

ways to help these customers

through initiatives like improving

services through the Post Office,

mobile bank branches, telephone

banking, and free-to-use ATMs.

A suitable digital infrastructure is

vital for customers to be able to

bank digitally.

The Government should prioritise

the roll out of superfast broadband,

particularly in geographic areas

where it would support access to

banking and financial inclusion.

3G and 4G coverage should also

be prioritised as a means of

supporting digital financial

inclusion.

The industry, consumer groups and

Government should support

customers capability to bank

digitally.

In particular, people who are less

likely to use digital banking (such

as the elderly), should be

supported to help them feel

confident in taking advantage of

new ways to bank.

Support Vulnerable Customers

Improve Digital Infrastructure

Support Digital Capability