CHEQUES: ANNUAL TRACKING MARKET RESEARCH 2018...Q1-2017. Q4-2016. Q3-2016. Q1-2016. Q3-2015....

CHEQUES: ANNUAL TRACKING MARKET RESEARCH 2018

July 2018

Public Circulation

INTRODUCTION

2

Market research conducted annually in April

■ C&CCC 11th annual survey of business users of cheques by BDRC ■ 1,000 businesses surveyed by telephone*

■ C&CCC 12th annual survey of consumers writing and receiving cheques by Kantar TNS ■ 2,000 consumers surveyed face-to-face*

Business research

Consumer research

■ C&CCC 3rd annual survey of charities writing and receiving cheques by Ipsos MORI ■ 1,000 charities surveyed by telephone*

Charity research

*For more information on the base data for each question, please contact [email protected]

mailto:[email protected]

KEY FINDINGS

4

SUMMARY – % THAT WRITE OR RECEIVE CHEQUES

■ 52% of consumers said that they had either made or received a payment by cheque in the past year (78% in 2008; 52% in 2013)

■ 79% of UK businesses said that they had either made or received any payments by cheque in the past month (96% in 2008; 83% in 2013)

■ 84% of charities had either made or received a payment by cheque in the past month (83% in 2016)

SUMMARY – THREE MAIN REASONS CHEQUES ARE WRITTEN

2018 • Consumers

• Pay a bill by post (20%) • Service in the home (18%) • Pay a club or society (17%)

• Businesses • Pay a trade supplier (63%) • Other ad-hoc payments to

businesses (40%) • Regular business

commitments (26%)

• Charities • Pay a trade supplier (62%) • Other ad-hoc payments to

organisations (58%) • Expenses to non-salaried staff

and volunteers (37%)

2013 • Consumers

• Pay a bill by post (26%) • Service in the home (20%) • Pay a club or society (14%)

• Businesses • Pay a trade supplier (75%) • Other ad-hoc payments to

businesses (33%) • Regular business

commitments (31%)

• Charities (2016) • Pay a trade supplier (64%) • Other ad-hoc payments to

organisations (58%) • Expenses to non-salaried staff

and volunteers (41%)

5

PROPORTIONS WRITING AND NOT WRITING CHEQUES, BY AGE

6

Proportion of people who write cheques by age

group

Proportion of people who do not write cheques by

age group

% of account holders writing and receiving cheques

Research conducted by Kantar TNS

5%

11%

27%

35%

41%

61%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

16-24

25-34

35-44

45-54

55-64

65+

(2013)

(6%)

(21%)

(42%)

(52%)

(62%)

(68%)

REASONS WHY BUSINESSES AND CHARITIES PAY BY CHEQUE

7

Manage cash flow

11%

Always have used cheques 22%

Payee request 28%

No payee account details 13%

Control who can pay 12%

Must send by post - remittance advice needed

9%

Cheaper than other methods 3% £

Payee may not cash cheque 5%

Money leaves account slowly 11%

% of businesses who gave each reason for making payments by cheque

Research conducted by BDRC

49%

41%

Need clear paper trail 46% n/a 53%

33%

36%

17%

13%

n/a

40%

31% n/a

Charities Charities Businesses Businesses

REASONS WHY BUSINESSES PAY BY CHEQUE – CHANGES SINCE 2008

8

Manage cash flow

11%


Payee request 28%




9%






24%

28%

27%

36%

13%

9% (2013)

1% (2013)

7% (2013)

9% 2008 2008

CONFIRMATION OF PAYEE - ANOTHER REASON WHY BUSINESSES PAY BY CHEQUE

Payer can be sure the money has reached the right person: • Corporates’ refunds to customers (Pay.UK

research) • Some banks paying out PPI refunds (Public

enquiry to C&CCC)

9

Insurance settlement

Dividends

CHANGES IN WHAT CHEQUES ARE RECEIVED FOR BY CONSUMERS SINCE 2013

10

Refunds 29%

Gifts 38% Wages or salary

11%

Expenses

7%

6%

6%

Selling something 4%

% of account holders who received a cheque in the past year

Gifts and refunds are most common purposes for receiving cheques

₤ Benefit payments 1%


31%

25%

13%

10%

12%

8%

7%

3%

2013 2013

CHEQUE DONATIONS AS A PROPORTION OF ANNUAL DONATION INCOME

11

27% of charities say they receive half or more of their donation income by cheque (29% in 2017) % of those who have either received or made a cheque payment in the past month

Research conducted by Ipsos MORI

39%

25%

10% 9% 8% 5% 4% 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

None Some, but lessthan half

Around half More than half,but not all

Almost all orall

Do not receivedonations

Don't know

Awareness of cheque imaging which will make the clearing process faster - greatest among charities

Awareness of cheque imaging which may allow people to pay in cheques through a mobile app – greatest amongst businesses

12

SUMMARY – CHEQUE IMAGE AWARENESS Q1-2018

17%

31%

39%

Consumer

Business

Charity

13%

23%

21%

Consumer

Business

Charity

Awareness of cheque imaging Change since Q3-2015

Awareness of a mobile app Change since Q3-2015

13

SUMMARY – CHEQUE IMAGE AWARENESS OVER TIME

0% 10% 20% 30% 40% 50%

Q1-2018

Q3-2017

Q1-2017

Q4-2016

Q3-2016

Q1-2016

Q3-2015

Consumer Business Charity

0% 5% 10% 15% 20% 25% 30%

Q1-2018

Q3-2017

Q1-2017

Q4-2016

Q3-2016

Q1-2016

Q3-2015

Consumer Business Charity

14

SUMMARY – LIKELIHOOD OF ACCEPTING CHEQUES WITH QUICKER CLEARING TIMESCALES

21%

23%

11%

0%

5%

10%

15%

20%

25%

Consumers Businesses Charities

15

SUMMARY – LIKELIHOOD OF INCREASED CHEQUE USAGE WITH CHEQUE IMAGING

27%

23% 24%

0%

5%

10%

15%

20%

25%

30%


16

SUMMARY – LIKELIHOOD OF DEPOSITING CHEQUES WITH APP/SCANNER

35% 39%

55%

0%

10%

20%

30%

40%

50%

60%


CONSUMER USE OF CHEQUES

USE OF CHEQUES

■ 31% of UK account holders make payments by cheque – (62% in 2008; 43% in 2013)

18

■ 37% of UK account holders received payments by cheque – (55% in 2008; 41% in 2013)

■ 52% of UK account holders said that they had either made or received a payment by cheque in the past year

– (78% in 2008; 52% in 2013)

■ 93% of those questioned have a personal account with a bank or building society


CONSUMER CHEQUE USE

19

Proportion of people writing cheques

Proportion of people receiving cheques



59%

52% 50%

43% 44%

38% 37% 34%

31%

55%

46% 49%

41% 40% 41% 39% 38% 37%

0%

10%

20%

30%

40%

50%

60%

70%

2010 2011 2012 2013 2014 2015 2016 2017 2018

2015 is the first year people start receiving more

cheques than they write

PROPORTIONS WRITING AND NOT WRITING CHEQUES, BY AGE

20

Proportion of people who write cheques by age

group

Proportion of people who do not write cheques by

age group



5%

11%

27%

35%

41%

61%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

16-24

25-34

35-44

45-54

55-64

65+

(2013)

(6%)

(21%)

(42%)

(52%)

(62%)

(68%)

16% Other by post (e.g. gift)

Personal services

Donation to charity

WHAT ARE CHEQUES WRITTEN FOR?

21

Pay bill by post

20%

Service in the home

18%

Child’s School or leisure

11%

Pay friend / individual

10%

8%

Bill at a counter

7%

7%

% of account holders writing cheques and who used a cheque for these purposes in the past year * Not statistically significant as data sample is too low

Retail Payment* 4% £

Pay a club or society 17%


7%

11%

(2013)

26%

14%

13%

(2013)

2% 12%

20% 10%

10%

CHANGES IN CHEQUE WRITING “OVER THE LAST THREE YEARS”

22

% of account holders writing cheques


53% 46%

53% 52%

20%

19%

19% 21%

20% 31% 23% 22%

0%

20%

40%

60%

80%

100%

2015 2016 2017 2018

Write many fewer Write slightly fewer No change Write slightly more Write many more Don’t know

CHANGES IN CHEQUE WRITING OVER THE NEXT THREE YEARS

23



40%

17%

39%

2% 0%

Write many fewerWrite slightly fewerNo changeWrite slightly moreWrite many more

PROBLEMS IF UNABLE TO WRITE CHEQUES

24

Consumers still worried– 58% would have problems if unable to write cheques (57% in 2017, 62% in 2013, only 49% in 2008)



42% 43% 41% 41%

40% 43% 43% 45%

15% 14% 14% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018

Don't knowMajor ProblemsMinor ProblemsNo Problems

PROPORTIONS RECEIVING AND NOT RECEIVING CHEQUES, BY AGE

25 Proportions writing and receiving cheques by age group


0% 20% 40% 60% 80% 100%

16-24

25-34

35-44

45-54

55-64

65+

ReceivingNot receiving

Insurance settlement

Dividends

WHAT ARE CHEQUES RECEIVED FOR?

26

Refunds 29%

Gifts 38% Wages or salary

11%

Expenses

7%

6%

6%

Selling something 4%

% of account holders who received a cheque in the past year

Gifts and refunds are most common purposes for receiving cheques

₤ Benefit payments 1%


25%

31%

13%

10%

12%

8%

7%

3%

(2013) (2013)

CHEQUES RECEIVED BY CONSUMERS

27

Method used to deposit cheques into bank account


70%

28%

3%

2%

1%

Over a bank branch counter

ATM deposit

Over a counter at the Post Office

Other

Mobile cheque deposit

ATTITUDES TOWARDS CHEQUES

28


28%

18%

22%

19%

29%

15%

9%

10%

10%

34%

2%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agree strongly Agree slightly Neither agree nor disagree

Disagree slightly Disagree strongly Don't know

I'm wary of accepting cheques from people or organisations I don't know,

because I can't be sure that they won't bounce

If my bank were to offer me a mobile banking app to deposit my cheques I

would use it

CHEQUE IMAGING

29

17% of consumers are aware that the Banking industry is in the process of introducing cheque imaging, which will make the cheque clearing process faster - a decrease on Q3-2017 with 21%

Where did you hear about cheque imaging?


37%

15%

13%

13%

11%

8%

7%

4%

2%

My Bank

Television

Online

Friend/Family

Newspaper

Not Sure

Other

Radio

Magazine

CHEQUE IMAGING – MOBILE

30

13% of consumers are aware that the Banking industry is in the process of introducing cheque imaging, which MAY allow people to pay in cheques by taking IMAGES via THEIR mobile banking app – similar to Q3-2017 with 14%

Where did you hear about cheque imaging on

your mobile?


34%

17%

17%

14%

10%

9%

6%

4%

2%

My Bank

Television

Friend/Family

Online

Newspaper

Not Sure

Other

Radio

Magazine

31

LIKELIHOOD OF DEPOSITING CHEQUES WITH AN APP, IF BANKS OFFERED THIS FACILITY

35%

55%

9%

1% 0%

10%

20%

30%

40%

50%

60%

Likely Not Likely Do not receivecheques

Don't know

% of account holders

32

LIKELIHOOD OF ACCEPTING MORE CHEQUE PAYMENTS WITH QUICKER CLEARING TIME


21%

61%

8% 10%

1% 0%

10%

20%

30%

40%

50%

60%

70%

Likely No difference Not Likely Do not receivecheques

Don't know

33

LIKELIHOOD THAT CHEQUE IMAGING WILL INCREASE CHEQUE USAGE


27%

51%

9% 9%

4%

0%

10%

20%

30%

40%

50%

60%

Likely No difference Not Likely Do not receivecheques

Don't know

BUSINESS USE OF CHEQUES

CHEQUES WRITTEN BY BUSINESSES

■ 46% of UK businesses said that they had made payments by cheque in the past month

– 89% in 2008, 70% in 2013

35

Average number of

cheques written per month by businesses:

7

(13 in 2013, 26 in 2008)


■ 59% of UK businesses said that they had made payments by cheque in the past year

26

22 22 22 19

13 12

7

12

5 7

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Market Research Year


36

Pay a trade supplier (2013)

Other ad-hoc payments to businesses 40%

Regular business commitment 26%

Wages & salaries £

12%

Refunds to customers 9%

Employee expenses 8%

% of businesses who use cheques for each purpose, 2017 Base: All businesses writing at least one cheque in the past month


75% 63% 70%

(2008)

31% 40%

13% 27%

33% 56%

8% n/a

11% n/a

REASONS WHY BUSINESSES USE CHEQUES

37

Manage cash flow

11%


Payee request 28%




9%



Money leaves account slowly

11%



24%

(2008) (2013)

23%

27% 27%

26% 36%

16% 15%

15% 26%

%

(2008)

9%

9% %

7% %

1% %

(2013)

HOW PROPORTION OF PAYMENTS MADE BY CHEQUE CHANGES OVER TIME

38


14% 17%

13% 13%

34% 20%

33%

41%

4% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Past 3 years Next 3 years

None

No longer use

Much smaller

Slightly smaller

No change

Slightly greater

Greater


39

% of businesses with each attitude if unable to write cheques at the current time


70% of businesses would have problems if unable to write cheques (75% in 2017)

31% 37%

25% 30%

53% 45%

48% 49%

16% 18% 26%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018

Don't knowMajor ProblemsMinor ProblemsNo Problems

CHEQUES RECEIVED BY BUSINESSES

40

Average number of cheques received per month by businesses

8

(16 in 2013, 28 in 2008)

■ 57% of UK businesses said that they had received payments by cheque in the past month (87% in 2008, 72% in 2013)

■ 79% of UK businesses said that they had either made or received any payments by cheque in the past month (an increase on 2017 – 75%). (96% in 2008, 83% in 2013)


28

22

27 27

22

16 16

8

13

9 8

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

■ 86% of UK businesses said that they had either made or received any payments by cheque in the past year

Refunds

Regular commitments

WHAT ARE CHEQUES RECEIVED FOR?

41

Other ad-hoc payments

13%

Ad-hoc payments for goods and/or services

57%

Dividends

13%

10%

3%

% of all who have received cheques in past year


CHEQUES RECEIVED BY BUSINESSES

42

Method used to deposit cheques into the business bank account


83%

9%

4%

3%

2%

1%

1%

1%

Over a bank branch counter

Over a post office counter

ATM deposit

Drop off envelope in branch

Other

Bulk deposit by a courier

Bulk deposit

Mobile cheque deposit

ATTITUDES TO RECEIVING CHEQUES

43

% of businesses that received cheques in the past month


6% 4%

36%

39%

12%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Prefer and request cheques Prefer but do not request chequesNo preference Do not prefer but will accept chequesDo not prefer/request cheques Don't know

WIDER ATTITUDES TOWARDS CHEQUES

44


25% 25% 21%

24% 25% 27%

16% 18% 19%

26% 24% 26%

11% 8% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

When receivingcheques, it is

irritating that wehave to take them to

the bank

When receivingcheques, it is

irritating that wehave to wait to get

the money

When writingcheques, we feel

that the money hasleft the bank

account as soon asthe cheque is

written

Disagree stronglyDisagree slightlyNeither agree nor disagreeAgree slightlyAgree strongly

49 %

CHEQUE IMAGING

45

31% of businesses are aware that the Banking industry is in the process of introducing cheque imaging, which will make the clearing process faster. This is a significant decrease on Q3-2017 (40%).

Where did you hear about cheque imaging to

make clearing faster?


33% 53%

13%

12%

10%

5%

4%

2%

1%

1%

1%

My Bank

Newspaper

Not sure

Website

Word of Mouth

Television

At work

Magazine

In post

Somewhere/someone else


46

23% of businesses are aware that the Banking industry is in the process of introducing cheque imaging, which may allow businesses to deposit cheques by taking images via their mobile banking app or using a desktop scanner. This is a decrease on Q3-2017 (26%).

Where did you hear about deposit by cheque

imaging?


49%

16%

15%

8%

6%

3%

2%

2%

My Bank

Newspaper

Website

Not sure

Word of Mouth

Television

Radio

Magazine

47

LIKELIHOOD OF DEPOSITING CHEQUES WITH AN APP/SCANNER, IF BANKS OFFERED THIS FACILITY

All respondents

39%

43%

12%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Likely Not Likely Do not use cheques Don't know

48


All respondents

23%

58%

6%

11%

2% 0%

10%

20%

30%

40%

50%

60%

70%

Likely No difference Not Likely Do not usecheques

Don't know

49


All respondents

23%

63%

8% 5%

0%

10%

20%

30%

40%

50%

60%

70%

Likely No difference Not Likely Don't know

CHARITY USE OF CHEQUES

USE OF CHEQUES

■ 53% of charities said they had made a payment by cheque in the past month

51

■ 84% of charities had either made or received a payment by cheque

in the past month (87% in 2017)

■ 73% of charities said they had received a cheque in the past month


■ 69% of charities said they had made a payment by cheque in the past year

■ 87% of charities also said they had received a cheque in the past

year

■ 93% of charities had either made or received a payment by cheque in the past year

CHARITIES MAKING CHEQUE PAYMENTS OVER THE LAST MONTH

52 % of charities who made a cheque payment in the last month by income


50% 40%

51%

35%

30%

22%

9%

17% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

£1-10,000 £10,001-£100,000 More than £100,000Charity Size (by income)

Don't knowMore than 500251-500101-25051-10026-5016-2511-156-101-5None


53

Pay a supplier 62%

Other ad-hoc payments to organisations 58%

Expenses to non salaried staff and volunteers

37%

Regular commitment e.g. rent

£

28%

Pay beneficiaries or fund projects 31%

Employee expenses

19%

% of charities who use cheques for each purpose, 2017 Base: All charities writing at least one cheque in the past month

Refunds to donors or beneficiaries 17%


REASONS WHY CHARITIES PAY BY CHEQUE

54

Manage cash flow

33% Always have used cheques 41%

Payee request 49%



Must send advice by post 40%

Need clear paper trail 46%



Main reasons why charities make payments by cheque

No other method available

31%


CHANGES IN CHEQUE WRITING OVER THE LAST AND NEXT THREE YEARS

55

34% of charities say their cheque usage has not

changed much in the last three years, and…

…46% say their cheque usage will not change much in the next three years!


0% 1%

46%

17%

24% Will write many moreWill write slightly moreWill have no changeWill write slightly fewerWill write many fewer


56

Charities are concerned – 77% would have problems if unable to write cheques (78% in 2017)

% of charities writing cheques


21%

41%

36%

2%

No problemsMinor problemsMajor problemsDon’t know

CHEQUE DONATIONS AS A PROPORTION OF ANNUAL DONATION INCOME

57

27% of charities say they receive half or more of their donation income by cheque (29% in 2017) % of those who have either received or made a cheque payment in the past month


39%

25%

10% 9% 8% 5% 4% 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

None Some, but lessthan half

Around half More than half,but not all

Almost all orall

Do not receivedonations

Don't know

ATTITUDES TOWARDS RECEIVING CHEQUES

58


7%

7%

54%

13%

18%

0% 10% 20% 30% 40% 50% 60%

We prefer to receive money by cheque andusually ask for payment by cheque whenever

possible

We prefer to receive money by cheque, butdon't try to influence the methods that are used

by others to pay us money

We don't mind how we receive money anddon't request payment by any method

We prefer not to receive cheques, but we don'ttry to influence the method that is used to pay

us money

We prefer not to receive cheques and generallytry to ask for other payment methods

HOW CHARITIES PAY CHEQUES IN

59


Respondents could select more than one option

74%

11%

8%

5%

4% 4%

2% 1%

Bank branch counter

Post office counter

Drop off envelope in branch

Other

ATM deposit

Don’t know

Bulk deposit

Bulk deposit by courier

74%

8%

11%

3%

CHEQUE IMAGING

60

39% of charities are aware that the banking industry is in the process of introducing cheque imaging, which will make the cheque clearing process faster. Significant increase from Q3-2017 (30%).

Where did you hear about cheque imaging?


51%

11%

10%

9%

5%

5%

5%

3%

3%

2%

Via my bank

Newspaper

Elsewhere online

Don't remember

Television

Friend/family

Other

Radio

Colleague

Magazine


61

21% of charities are aware that the banking industry is in the process of introducing cheque imaging, which MAY allow people to pay in cheques by taking IMAGES via THEIR mobile banking app. This is an increase on Q3-2017 (18%).

Where did you hear about cheque imaging on

your mobile?


41%

14%

11%

10%

10%

10%

4%

4%

3%

2%

2%

1%

Via my bank

Elsewhere online

Newspaper

Television

Don't remember

Friend/family

Radio

Other

Magazine

Colleague

Social media

Email/memo

62

LIKELIHOOD OF DEPOSITING CHEQUES WITH AN APP, IF BANKS OFFERED THIS FACILITY

All respondents

55%

39%

1% 4%

0%

10%

20%

30%

40%

50%

60%

Likely Not Likely Do not use cheques Don't know

63


All respondents

11%

83%

2% 1% 3% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Likely No difference Not Likely Do not usecheques

Don't know

64


All respondents

24%

62%

8% 6%

0%

10%

20%

30%

40%

50%

60%

70%

Likely No difference Not Likely Don't know

CHEQUES: ANNUAL TRACKING MARKET RESEARCH 2018...Q1-2017. Q4-2016. Q3-2016. Q1-2016. Q3-2015....

Documents

Transcript of CHEQUES: ANNUAL TRACKING MARKET RESEARCH 2018...Q1-2017. Q4-2016. Q3-2016. Q1-2016. Q3-2015....