Retail Bank Savings in the UK: Forecasts and Future Opportunities

This report offers a forecast of the personal savings market in the UK, analyzes the factors that will determine this outlook, and examines savers’ intentions and behavior. It offers a forecast of personal savings deposits up to 2019, analyzes the factors determining the outlook of the savings market, and looks at what providers are doing to improve their performance. The report concludes with analysis of drivers of provider choice and how banks can harness the personal goals of consumers and encourage them to save.


Identify the size, growth, major segments, and leading players in the retail savings & investments market in the United Kingdom

Understand the future growth prospects of the United Kingdom retail savings & investments market

Macroeconomic indicators provide insight into general trends within the UK economy

Reasons to buy

What was the size of the UK retail savings & investments market by value in 2015?

What will be the size of the UK retail savings & investments market in 2020?

What factors are affecting the strength of competition in the United Kingdom retail savings & investments market?

How has the market performed over the last five years?

What are the main segments that make up the United Kingdom's retail savings & investments market?

Companies mentioned


Table of Contents




Retail Savings Growth is Slowing But Will Remain Positive

Deposit accounts are expected to remain the UK’s preferred asset class for saving

Increasing consumer confidence levels are reducing consumers’ need to save

Declining wage growth and a stagnant unemployment rate will restrict savings growth

Diminishing interest rate differentials between instant-access and fixed-term accounts are acting as a disincentive

New regulations aiming to change the UK savings landscape

The Personal Savings Allowance will boost the savings market

Budget : cash ISA allowance up to £, in

The PSA will reduce the relative appeal of ISAs

The FCA has announced new rules to encourage competition and give customers a better deal

Providers Reacting to Market Changes

Lloyds Banking Group retains its dominance in the UK retail savings market

Challenger banks are competing on price

Providers are harnessing mobile capabilities to attract savers

Santander’s ISA app helps consumers be more proactive about saving

Dyme aims to encourage millennials to save more

Moven uses gamification to incentivize saving

Lloyds Bank’s Swave app encourages consumers to save little and often

Personal financial management apps can help drive savings behavior

HSBC’s Nudge app helps users save money and be more aware of their spending habits

Nationwide is targeting long-term customers by rewarding loyalty

Familiarity & Convenience Will Help Drive Savings

Consumers prefer instant access over fixed-term accounts

Familiarity and convenience are drivers of provider choice

Harness consumers’ personal goals to encourage saving


Providers must heed change and react accordingly



Further Reading

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List of Tables


List of Figures

Figure 1: Retail deposits account for half of retail savings and investments in the UK

Figure 2: Retail deposits will experience sluggish growth up to 2019

Figure 3: Growing consumer confidence has reduced consumers’ desire to save

Figure 4: With no significant pick-up in earnings, consumers’ capacity to save is expected to reduce

Figure 5: Interest rates on savings accounts continue to fall

Figure 6: Savers have suffered in recent years with a continual rate reduction on cash ISAs

Figure 7: The lowest interest rates offered by 32 providers of easy-access cash savings accounts

Figure 8: Lloyds Banking Group holds a quarter of all retail deposit balances in the UK

Figure 9: Challenger banks offer the best easy-access deals

Figure 10: Moven users can track their spending and saving in real-time

Figure 11: The HSBC Nudge app prods customers to spend less and save more

Figure 12: Nationwide rewards loyal savers with a higher interest rate

Figure 13: Savers regard instant access to be more essential in a savings account

Figure 14: Consumers are shifting from fixed-term to instant-access deposits

Figure 15: Existing relationship and rates offered influence consumers’ decision when taking out a savings account


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