1. EXECUTIVE SUMMARY 2
1.1. Market summary 2
1.2. Key findings 2
1.3. Critical success factors 2

2. MARKET ENVIRONMENT 8
2.1. Economic conditions have led consumers to save more in spite of falling APRs 8
2.2. Total deposit growth over the forecast period will be half that of the preceding five years 8
2.3. Increased uncertainty has led to a small reissance for cash ISAs 9
2.4. The cash ISA market is forecast to outperform non-cash ISAs 10
2.5. The outcome of Brexit will heavily influence interest rate policy 11
2.6. The mortgage price war has also led to falling APRs for depositors 12
2.7. Real wage growth has generated higher levels of saving 13
2.8. UK consumers are actively trying to save 14
2.9. Stringent rules and complexity have led banks to avoid lifetime ISAs 15
2.9.1. LISAs will need to change for incumbent banks to take up the product 17
2.10. Innovative fince ISAs face a similar fate to LISAs as P2P lenders experience a difficult year 17
2.10.1. Caution around P2P lending has led to low take-up of innovative fince ISAs 17
2.11. Pension freedom withdrawals remain popular 18
2.11.1. A cocktail of factors has caused the decline of annuities 19
2.11.2. Customers prefer the freedom and liquidity of cash savings over a pension 19
2.11.3. The FCA believes older consumers are being too cautious with their pension savings 19
2.11.4. Banks should explore a gap in the pension savings market 19

3. COMPETITIVE ENVIRONMENT 21
3.1. The market share of the main providers continues to fall 21
3.2. Challenger brands are competing aggressively for new business 22
3.2.1. OakNorth Bank 22
3.2.2. Atom Bank 22
3.2.3. Charter Savings Bank 22
3.2.4. Shawbrook Bank 22
3.2.5. Al Rayan Bank 23
3.2.6. PCF Bank 23
3.2.7. Marcus 23

4. CONSUMER BEHAVIOR 25
4.1. Incumbent banks have closed a third of UK branches in five years 25
4.1.1. Older consumers are least likely to change provider or behavior when affected by closures 27
4.2. First Direct leads customer sentiment while TSB flounders 28
4.2.1. tionwide is first among the incumbent providers but its NPS has fallen 17 points in two years 28
4.2.2. Support for TSB has collapsed in 2019 29
4.2.3. Low channel satisfaction drags down Santander and Halifax 30
4.3. Assisted saving tools lack support from even keen savers 31
4.4. There are early signs that mobile and IM saving are set to grow 32

5. REGULATORY ENVIRONMENT 33
5.1. The FCA believes savers are being pelized for loyalty 33
5.1.1. A basic savings rate is likely to be detrimental to the savings market 34
5.1.2. Savers and banks could both benefit from a savings account switching service 34

6. INNOVATION 36
6.1. Budgeting and auto-saving features can help consumers save without conscious effort 36
6.1.1. Innovators are using a simple combition of open banking, customer transaction data, and contemporary banking infrastructure 36
6.1.2. Selling fincial and other products to customers is innovators’ main revenue source 36
6.2. Cleo has grown the fastest of the innovators 37
6.2.1. As well as its level of insight, Cleo’s big advantage is its social media savvy 37
6.3. Plum has positioned itself for users who want to save without economizing 38
6.3.1. Plum Plus is mandatory for the investment features 39
6.4. Chip customers can earn up to 5% interest 39
6.5. Oval Money offers behavioral budgeting and saving 40
6.5.1. Oval Money’s rules are unlikely to help customers accumulate large, regular savings 41
6.6. Squirrel caters for a niche market 41
6.7. Tally Money threatens banks’ easy access deposits with older, affluent consumers 42
6.7.1. A decade of low interest rates has spawned inflation-protection products 42
6.8. Raisin is expanding across multiple physical and online markets 43
6.9. Incumbent providers have already begun to copy the innovators 43
6.9.1. Santander Wallet 43
6.9.2. Lloyds Banking Group’s Save The Change 43
6.9.3. tWest’s Mimo 44
6.10. Other innovative news 44
6.10.1. tionwide PayDay SaveDay 44
6.10.2. Monzo offers salary sorter and budgeting tools 44

7. APPENDIX 46
7.1. Abbreviations and acronyms 46
7.2. Methodology 46
7.2.1. GlobalData’s 2019 Banking and Payments Survey 46
7.3. Secondary sources 46
7.4. Further reading 48