18 December 2017
visit www.avoka.com

Offset banking on the rise says IF

02 January 2003  |  4637 views  |  0 Offset banking on the rise says IF

Nearly 2.5 million adults in the UK have already taken up an offset banking offer, according to new research by ICM for direct bank Intelligent Finance.

The research, which is based on telephone interviews with over 1000 UK adults, forecasts a sizeable rise in the popularity of the offset banking principle which allows consumers to offset interest charges on their borrowings against savings.

According to ICM, a further ten million UK banking customers who don’t currently offset their accounts would consider switching to a bank that offered such a service.

Grenville Turner, IF chief executive comments: "In a climate where returns on savings in traditional accounts are low, the burden of taxation is rising, and the stock market is in a prolonged slump, offset banking gives people the opportunity to make their money work far harder for them. It’s small wonder that offset banking is quickly catching on."

However, only a quarter of those interviewed are aware of offset banking, a 50% increase on a year previously but still some way short of the numbers required to force a big change in banking habits.

IF - which has built its business around the offset principle - notes with satisfaction that ABC1’s are significantly more likely to be aware of offset banking than the population at large, with nearly one in three understanding the concept.

The bank says that offset banking particularly appeals to this group and to the next generation of banking consumers - 18 to 34 year olds - and homeowners. Some one in three of each of these groups say they would consider changing their bank to take advantage of of offset banking rates.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Spowart steps aside as Intelligent Finance looks abroad

Spowart steps aside as Intelligent Finance looks abroad

29 November 2002  |  3856 views  |  0 comments
ASA rules in favour of First Direct in IF ads row

ASA rules in favour of First Direct in IF ads row

13 November 2002  |  3412 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.response.ncr.comvisit www.ebaday.comvisit www.aciworldwide.com

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
11138 views comments | 3 tweets | 2 linkedin
Banks tap Ethereum smart contracts for MiFID II complianceBanks tap Ethereum smart contracts for MiF...
9705 views comments | 20 tweets | 21 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
7679 views comments | 19 tweets | 22 linkedin
Nordea takes Open APIs into live productionNordea takes Open APIs into live productio...
7258 views comments | 6 tweets | 26 linkedin
Digital banking startup Loot secures £2.2 million seed roundDigital banking startup Loot secures £...
7182 views comments | 5 tweets | 11 linkedin

Featured job

Competitive package
New York City, NY - USA

Find your next job