Nearly six in 10 consumers in Ireland believe the banking sector either hasn't improved or has become worse since the crash, according to a Department of Finance survey conducted by Behaviour & Attitudes.

The survey forms part of the Retail Banking Review, ordered by finance minister Paschal Donohoe last year after Ulster Bank and KBC Bank announced they are leaving Irish market, shows that one in three consumers believe banking culture hasn't changed while 27% feel it has become worse.

Of the 1,507 adults who completed to face-to-face interviews for the survey, four in five respondents are either very satisfied (31%) or relatively satisfied (52%) with their banking providers.

AIB (36%), Bank of Ireland (34%) and Permanent TSB (12%) account for most current accounts provision, with 11% either with Ulster Bank or KBC now searching for a new bank.

Of the remainder, 2% have their main account with An Post, 2% bank primarily with their credit union, 2% have no account, and 1% said their primary account is with Revolut, although 18% of consumers are Revolut users.

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In an address at the Retail Banking Review dialogue event in Tullamore, Co Offaly, minister Donohoe said the 22,000 banking staff working in Ireland today is under half the numbers working in the sector in 2008.

The minister said the focus of his department’s review is not just about the traditional retail banks.

“It is about all the providers of retail banking services to Irish consumers and SMEs including the traditional banks, the digital banks, the credit unions, An Post and the non-banks providing credit to SMEs and to consumers,” he explained.

“Similar to other sectors, digital technology or fintech is changing the way banking services are provided to customers, which in turn is also enabling changes to the business models of traditional providers.

“The Review will consider the impact of recent changes, and potential new changes, on consumers and SMEs. It will pay particular attention to ensuring that these changes do not result in vulnerable consumers being excluded.

Indeed, ‘access’ is a core issue, and a key focus of the Review will be on ensuring that consumers and SMEs have appropriate access to the retail banking services that they need.

“The Review will seek to identify policy and other initiatives that my department, the sector, the Central Bank and other stakeholders can implement to ensure we have a fit-for-purpose retail banking sector appropriate to the times that we now live in, and with the capability to deliver effectively over the next decade.”

The 250 branches that have closed since 2014 or are scheduled to close in the coming months represent a third of the countrywide banking network.

One in four banking customers now have to travel over 10km to their bank branch. In rural areas the same proportion live less than 5km from their bank branch.

Though four in five people now use online banking, for people aged over 55 the branch remains the main form of contact with the bank.

Conversely, three in five fintech customers strongly believe that the services offered by providers such as Revolut and N26 are a very good substitute for the services offered by more traditional banks.

The survey shows that switching consideration remains limited, with less than a fifth having ever considered switching mortgage provider (17%), current account or credit card (14%), or savings accounts (12%), even with the imminent exits of Ulster Bank and KBC.

The actual rate of switching is 2% to 5% for the past five years, depending on the financial product.

The main barriers for switching are identified as inertia, perceived difficulty, and lack of alternative providers.

(Pic: Getty Images)