2016 Banking and Credit Card Survey

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1 2016 Banking and Credit Card Survey

2 About Credit Reporting Agency Credit Reporting Agency is the UK s first internet based credit reference agency, aimed firmly at serving consumers, rather than business users. It leads the UK market in the provision of online credit file based services and provides consumers with easy access to information on three websites: checkmyfile was first in the UK: - to provide consumers with online access to their credit files; - to offer consumers the ability to check their own credit score for free and to give plain English explanations of how credit scoring works. givemecredit was first in the UK: - to match lenders to consumer credit ratings for free, using credit scores, to help consumers find the cheapest deals and to reduce the risks of being declined; -to publish fully independent reviews of credit card and loan lenders based on expert evaluation and consumer feedback of customer service experience. creditreport.co.uk was first in the UK: - to provide free credit reports to consumers to encourage more to check the quality of the information held about them, and to guard against the increasing threat of identity theft; - to provide free identity theft prevention services. About this survey Established in 2005, our annual Banking and Credit Card Survey is the longest running and most comprehensive of its type in the UK. We use the results to ensure that when suggesting potential sources of credit or banking services to our customers on givemecredit we can give an independent assessment of the service levels likely to be provided. We also ensure that applicants are matched to lenders who are most likely to say yes, so the risks of being declined are minimised. 400 people took part in this survey and the analysis was first published on 20 December 2016.

3 Summary of Survey Results We ve been running these surveys since It s surprising how constant some of the responses have been over the past 12 years. This is even more surprising this year as we have taken a radically different approach to the collection of responses. Instead of polling our customers, for the first time we have commissioned an external survey of consumers who are a representative sample of the general public. Some of the constants are worth shouting about. Many congratulations to First Direct, which came out top for customer service for the ninth year in succession, by a country mile. Nationwide deserves a pat on the back too for consistently high satisfaction ratings retaining its 2 nd position this year. In credit cards, American Express has retained its no 1 position for customer service. Given the limited acceptability of that card, this is quite an achievement. Barclaycard has made serious inroads on its position in the customer service tables it s the highest rated credit card provider this year. Less encouraging to see is the continued apathy by many to change banks. Most of us can t be bothered to change it seems, even if we are receiving less than stellar customer service. That s been the case for the entire 10 year term of this survey. Yet moving to First Direct or to Nationwide can seriously improve your view of banks and of life. Also, few of us chase low interest rate cards as much as we should. We appear to be more driven by rewards programmes and cashback offers together these are the most cited reason for using a particular card, at 20% of all polled, against just 1.5% of us who look out the least expensive card to use. Ending on a happier note, more of us are getting the credit we apply for. 86% of those polled and who applied for credit were accepted. We d like to think that the percentage has improved over the years as consumers have used their credit reports, and credit scores, to find lenders who are more likely to lend to them. Thanks to all of you who have helped us to build this amazing insight into the world of finance.

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5 About the sample

6 The Halifax appears to be gaining more ground as progressive surveys have shown the bank eating into the market share of traditional players, in particular from Nat West.

7 What is the main reason you are with your current bank? Have always banked with them 29.50% Good customer service 21.50% Rewards 12.75% Can't be bothered to change 11.75% Good online banking 9.00% Convenience of local branch 7.25% Other 2.25% I'm stuck with them - overdraft or loans 2.00% It's linked to my mortgage 1.75% I work there (or used to) 1.50% Took up offer to switch 0.50% No reason to move 0.25% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% How long have you had your bank account? 11 years or more 44.75% 4-10 years 27.75% 1-3 years 19.00% Under 1 year 8.50% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

8 Which method of banking do you use most? Online 29.75% In-branch 18.50% Mobile app 17.25% Telephone 3.50% Other 1.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% How do you rate the service from your bank? Poor 1.50% Not as good as it should be 1.75% Average 20.75% Very good 44.25% Excellent 31.75% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% Do you think the service provided by your main bank has changed significantly in the last 12 months? It's pretty much the same as it was 69.25% Yes I think it has improved 21.75% No I think it has got worse 9.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

9 . First Direct tops the table once again now for the 9 th year in a row, and Nationwide maintains its 2 nd place position. The above table is ranked by consumers rating the service levels from their bank as either excellent (green) or very good (yellow). Brown is average, dark brown is not as good as it should be and red is poor.

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11 What is the main reason you use this particular card most? Convenience It's the only one I need No credit card held It has a good rewards programme It pays cashback on purchases High credit limit Purchase protection or fraud prevention It is used by my current account provider It has a 0% introductory offer It's the only one I could get It has good online account management The standard APR is very competitive No charges for use abroad 11.00% 10.25% 9.75% 7.75% 6.75% 5.50% 5.50% 3.75% 2.75% 1.50% 1.00% 14.75% 19.75% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% How long have you had your credit card? 11 years or more 19.50% 4-10 years 32.50% 1-3 years 27.00% Under 1 year 21.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

12 How do you rate the service from your credit card provider? Poor 5.30% Not as good 7.60% Average 31.40% Very Good 37.90% Excellent 17.80% 0% 5% 10% 15% 20% 25% 30% 35% 40% Has your opinion of your main credit card provider changed significantly in the last 12 months? No, not really 76.25% Yes, they have gone up in my estimation 13.75% Yes, but they have gone downhill in my estimation 10.00% 0.00% 10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

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