Capitalflow Takes Deep Dive into Irish Consumer Switching Habits

Dublin, 31st October 2022 – Irish consumers are becoming increasingly savvy when it comes to seeking value for their hard-earned money and are looking to switch service providers more than ever before, according to new research commissioned by Capitalflow and carried out by iReach.

With inflation and the rising cost of living putting pressure on household budgets across the country, Capitalflow has taken a deep dive into Irish people’s attitudes and habits when it comes to switching – from banking to telecoms, insurance to utilities – bringing some surprising statistics to the forefront in the form of a revealing research report, the Capitalflow Annual Switcher Report.

Key Trends

Whether it’s changing insurance provider or shopping around for a different gas or electricity service, a massive 91% of all adults in Ireland admitted to switching at least one service within the last five years. In fact, the main reasons Irish adults consider making a switch comes down to getting better deals, a seamless switching process, and availing of a loyalty or rewards programme. For those who haven’t switched any services, 48% said they were happy with their current service, 33% think it’s not worth the hassle, 29% have a great deal already, and 17% simply couldn’t be bothered.

Insurance services tend to see the highest turnover of customers with 85% of adults having switched car insurance, 70% switching home insurance and over half having switched health insurance provider in the last five years. Utilities have also seen lots of switching action with three quarters of adults having switched gas provider. Almost half said they like to shop around for service providers, 32% received a bundle discount to switch and 20% switched to feel valued and rewarded.

Banking

However, Capitalflow’s new research reveals a less positive picture when it comes to financial services, showing that when it comes to moving to a new bank or switching mortgage providers, Irish adults are more reluctant, citing time and complexity as the main barriers to making the switch.

Less than half of Irish adults switched a financial service in the last five year, over three quarters of those surveyed stated that they did not find it easy to switch mortgage provider, while two thirds of adults said the process of switching a loan or loan account was not a simple one. And while 54% have switched loan accounts, just 40% have switched their credit card and only 37% have switched their current account in the last five years.

Currently 53% would or might consider moving to a fully digital bank. Of those 72% would require a high level of online security to protect their data, and 69% said having all services available online and via a banking app would be essential.

Interestingly, 63% of adults would or might be influenced to switch banking providers due to the sustainability commitments of a Bank or Financial Service provider.

Savings

The research also delves into the average annual savings consumers have made when switching services:

  • Those who switched mortgage provider cite an average annual saving of €1,094.30, €97.94 for a current account, and €112.20 for a credit card.
  • Those who have switched Gas provider saved €189.73, while for heating/electricity it’s €222.21.
  • For Broadband the average annual saving was €124.07, and for Digital TV it’s €107.54.
  • Finally for Insurance savings are €214.31 for Health, €162.57 for Car and €125.37 for Home.

Ronan Horgan, CEO of Capitalflow, said: “We’re delighted to launch this research report which provides insight into Irish consumers attitudes and habits when it comes to switching. It’s particularly interesting to see how financial services fare versus other services when it comes to switching, and the barriers consumers can face in those areas, but encouraging to hear how open consumers are to a digital banking alternative.”

“We established Capitalflow to challenge the status quo in the financial sector and we know switching is a hot topic of conversation with two main banks exiting the market, higher interest rates and an energy crisis.  The insights revealed by this research will guide us in looking after our customers and making their lives as easy as possible.”

Financial Expert John Lowe of MoneyDoctors.ie, said: “I am delighted to support this initiative by Capitalflow to help increase consumer awareness in this area. It is unfortunate that it takes an energy crisis to seriously change consumer attitudes to switching. Regardless of income, savings are still savings, and we constantly need to be vigilant in order to find value. It is always worth the effort.”

In the report John Lowe of MoneyDoctors.ie outlines his top tips for consumers when it comes to switching and saving.

Capitalflow is a Dublin-based business lender that works with Irish SMEs and property investors to provide flexible finance options to scaling companies through its digital platform. It was recently acquired by the EU’s second largest digital bank, bunq, which launched an Irish IBAN earlier this year with quick sign-up, transparent fees, and a suite of easy-to-use banking products.

More information can be found at capitalflow.ie.

The full Capitalflow Switcher Research Report can be viewed here: Capitalflow Annual Switcher Report – October 2022.