Since Mintel last examined the Irish current account market in 2009, the situation facing both consumers and financial services providers has changed considerably. Both have their respective problems to address.

Consumers' efforts to reduce expenditure and curtail outgoings are negatively impacting upon current account providers' cross-selling opportunities. Banks' efforts to repair their balance sheets mean higher charges, fees and overdraft rates on current accounts.

Merger and acquisition activity, stringent credit standards and fewer lenders offering loans has reduced supply of loans, resulting in weak competition and higher lending rates.

Consequently, unsecured loans have become less competitive compared to overdrafts, credit cards and MEW.

The financial services authorities in Ireland have responded to concerns regarding a lack of transparency in overdraft charges and account switching by altering the banking codes in both NI and RoI, and in turn heightening customer protection.

Advances in technology are bringing the Irish current accounts market further into the 21st Century, and account management is now even easier and more accessible through the development of mobile phone banking. Meanwhile, current account providers are diversifying their product offerings and have intensified their customer acquisition tactics.

The personal loans market has enjoyed a period of sustained and fairly rapid growth driven by the availability of credit and low interest rates. However, many analysts believe that, with interest rates rising throughout 2007 and the effects of the global ‘credit crunch’ now being felt in both Republic of Ireland (RoI) and Northern Ireland (NI) economies, this period of cheap and abundantly available credit is over. Indeed, such is the lack of liquidity in the money markets, the decision by both the Bank of England and the European Central Bank to reduce interest rates in late 2007 and early 2008 may have limited impact in spurring growth in the personal loans market.

Key themes of the report:

The market for current accounts in Ireland was last examined by Mintel in the Current Accounts – Ireland, May 2005 report. Since then, market growth has continued, both in value terms and in terms of the number of Irish consumers with a current account in their name.

Recent developments in the market such as the Competition Commission inquiry into unfair charges and the increasing numbers of Irish consumers switching account providers are discussed in this report as well as the following key themes: