1. Consumer Cheque Market Research 2010 October 2010

2. 2 Introduction ■2010 edition of consumer cheque use survey ■Fourth such study. Previous ones conducted in 2007, 2008 and 2009 ■Areas of interest: –Writing and receiving cheques –Reasons for writing and receiving cheques –Where cheques are used and the alternatives –Attitudes and alternatives –Knowledge of cheque propositions (2-4-6)

3. 3 ■Same sample size as previous years – 2,000 adults –1,813 (91%) of whom have personal accounts with a bank or building society ■Questionnaire largely retained to ensure consistency and enable comparison ■Surveyed at same time of year – April – and same dates (where possible) ■Survey undertaken by TNS research Changes ■Inclusion of Northern Ireland in sample for first time ■New questions to reflect changed priorities Notes ■Percentages quoted in the following slides can be considered accurate to +/- 2 percentage points ■When comparing results for 2010 with those from previous years, a change of up to 4% from one year to the next may be the result of normal sampling variations, rather than being indicative of a real change in behaviour

4. Use of cheques

5. 5 Percentage of people who have written and received cheques in the last year Base: All bank and building society account holders

6. 6 Number of cheques written and received Base: All bank and building society account holders

7. 7 Reasons for receiving cheques Base: All who received a cheque

8. Changes in writing cheques over last three years

9. 9 Changes in consumers’ writing of cheques over the last three years Base: All who wrote a cheque

10. Where cheques are used and the alternatives

11. 11 Main reasons for writing a cheque Base: All who wrote a cheque

12. 12 Those who think there’s a convenient alternative in those areas Use of cheques Number of consumers in sample identifying each use % of those consumers identifying a convenient alternative Pay a bill by post46545% Pay a tradesman who comes to the house 23932% Pay a club or society15636% Pay someone else (not by post)13442% Pay a bill at a bank or post office counter 14649% Make a donation to a charity10448% Pay for children’s activities10141% Make another type of payment by post 10625% Note that the base size for the percentages in the final column is given by the number of respondents identifying each use for cheques, as shown in the second column

13. Attitudes to cheques

14. 14 Consumers who would have problems if not able to write cheques Base: All who wrote a cheque

15. 15 Attitudes to being paid by cheque Base: All who received a cheque

16. 16 How long consumers take to deposit cheques they receive

17. Knowledge of cheque clearing process

18. 18 Consumers’ knowledge of propositions Base: All who received a cheque

19. 19 Need for information about cheques Base: All who wrote or received a cheque

20. Summary

21. 21 Summary and implications ■Small changes year-on-year. No sizeable movements ■Consumers said they wrote fewer cheques in last three years –Suggests have identified alternatives to cheques in most cases