Irish consumers reluctant to shop around for banking products - Drivetime
New research has shown that Irish consumers are fairly reluctant to shop around when it comes to banking products.
In a new survey by the Economic and Social Research Institute, the ESRI, it was revealed that the majority of people didn’t shop around when choosing a bank and many would not consider switching either.
Daragh Cassidy, Head of Communications at bonkers.ie, appeared on Drivetime to discuss the findings of the survey.
Listen back to the interview above or take a look at the main points discussed in the interview below.
Main points from the interview
- This research from the ESRI is saying two things - we don’t switch financial services products in Ireland, and it’s also highlighting the fact that in the first place, Irish people don’t shop around much either.
- When it comes to current accounts, 73% of consumers did not shop around before opening an account. A lot of people open bank accounts when they are just teenagers.
- When it comes to personal loans, 68% of people don’t shop around and for credit cards, 74% of people don’t shop around.
- And even when it comes to taking out a mortgage, 46% of people stated that they did not compare offers available on the market.
- Of course, the exits of KBC and Ulster Bank have caused people to switch bank accounts.
- People will jump through hoops in Ireland to save €50 on their car insurance, but they won’t do the same for banking products, like loans and credit cards.
- The research shows that there’s a fear and a lack of education. When it came to bank accounts and credit cards, people were put off by the paperwork.
- The resistance to switching mortgages was due to people being deterred by the amount of paperwork, along with solicitors fees and the difficulty of the switch.
- There is money to be saved, however, people are reluctant to switch banking products.
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