Table of Contents
OVERVIEW
- Catalyst
- Summary
- Methodology
INTRODUCTION
- Financial Services Consumer Insight: dispelling the myths surrounding
online behaviors
- Understanding consumers' attitudes towards financial services is vital
for providers
THE FUTURE DECODED
- Trend: Global use of the internet has increased
- Ongoing technological evolution has facilitated a steady increase in
internet usage
- Demographic changes and alterations in consumer behavior have increased
consumer driven demand
- Insight: Increased global internet usage has led to an increase in use of
the online channel in the day-to-day management of current accounts
- Take-up of online registration for current accounts is most popular in
the West
- The greatest proportion of online users are from Generation X, but
take-up is becoming increasingly popular with older demographics
- Many consumers still prefer branch banking
- Insight: The online platform for current account transactions is not used
to its full capability
- The online channel is not being used for all the tasks available
- Task preference shows some regional variation
- Trend: Mobile banking is gaining in popularity
- Insight: Mobile banking will follow the same trajectory as online banking
- Consumers are more comfortable performing simpler tasks through the
mobile platform
- Insight: Mobile banking appeal differs regionally
- The mobile banking platform holds the most potential for emerging markets
- Usage and adoption of mobile banking platforms varies considerably in
the developing countries
- Trend: The impact of Web 2.0 has provided banks with key opportunities to
increase use of the online channel for financial services
- Web 2.0 presents challenges as well as promises
- Insight: Dynamic content is a key factor in engaging consumers
- "MSN style" chat functionality holds great customer service and
cross-selling potential
- Insight: Greatest use of social media is for customer service rather than
sales and marketing
- Trend: Security issues are the biggest threat to online current account
banking
- Insight: Security concerns are more prominent in emerging regions than in
the Eurozone and US
- Insight: Day-to-day convenience does not overcome security concerns
- Consumers are as concerned about post-fraud customer service as they are
about fraud prevention and detection measures
- Perceived security is just as important as real security
- Authentication processes are key to finding the balance between
deterring consumers and quelling security concerns
ACTION POINTS
- Action: Improve the online platform and venture into mobile banking
platforms
- Experiment more boldly with mobile banking technology
- Action point: Acquire and retain customers through more experimental use
of Web 2.0 technology
- Integrate the use of social media into customer service strategies
- Aggressive advertising through social media channels should be avoided
- Integrate more advanced technology into the in-branch experience
- Action: Focus marketing on alleviating security concerns
- Make the authentication process less cumbersome
- Increase focus on reverse authentication
- Educate users on security and technology
APPENDIX
- Data tables
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
TABLES
- Table: Global internet penetration
- Table: Product holdings among those who have used online banking in the
last six months or bought financial services online
- Table: Product holdings in Asia Pacific
- Table: Product holdings in BRIC countries
- Table: Product holdings in Eurozone and US
- Table: Internet penetration and online registration for current/checking
accounts by country
- Table: Online registration for current/checking accounts by age
- Table: Product holdings by age
- Table: Online banking will never replace branch banking by country
- Table: Tasks conducted through online banking over the last six months (of
those who have a current account/checking account)
- Table: Tasks conducted online over the last six months by region
- Table: How often do you check your bank balance?
- Table: Consumers who avoid opening their bank statements, by country and
region
- Table: Mobile telephone subscribers per 100 inhabitants
- Table: Tasks conducted online by urban Indians
- Table: Why not online banking?
- Table: Security concerns by age
- Table: Of those that have never used online banking or bought financial
services online, security concerns and preference to deal in branch by country
- Table: Of those that have done online banking in the last six months or
bought financial services online, security concerns and preference for face to
face contact by country
- Table: Proportionate identity fraud data
FIGURES
- Figure: Internet penetration has shown consistent growth since 2000
- Figure: Internet penetration is highest in North America but the majority
of internet users are in Asia
- Figure: Current/checking accounts are the most popular product to be
registered online for
- Figure: Current account online registration is the most popular in all
Eurozone countries and the US
- Figure: The BRIC countries have the lowest levels of internet penetration
but comparatively high online registration levels for current/checking accounts
- Figure: Online registration is most popular for current accounts across
all demographics
- Figure: Most consumers registered to use their current/checking account
online are between 25 and 64 years old
- Figure: Half of the global population believes that online banking will
never replace branch banking in their eyes
- Figure: The simplest and most frequently required tasks are the most
popular on the online platform
- Figure: Task preference shows some regional variation
- Figure: Eurozone and US consumers check their bank balances most frequently
- Figure: Consumers who avoid opening their bank statements by region
- Figure: Mobile phone subscriptions have steadily increased since 1997
- Figure: The mobile banking platform has increased in sophistication with
the introduction of ' smartphones'
- Figure: Mobile banking is expected to follow the same trajectory as online
banking
- Figure: Checking balances is the most popular function on the mobile
banking platform in India
- Figure: Mobile bankers in the UK appear to use the service during ' dead'
time as a convenience
- Figure: Monitise predicts the most growth for mobile banking in the Asia
Pacific region
- Figure: Mobile banking was found to be most popular with lower income
users in India
- Figure: UBank has pioneered the use of social media in Australia
- Figure: Security concerns are the biggest deterrent to registering online
- Figure: Security concerns span all age groups
- Figure: Security concerns are greater in emerging markets, whereas a
preference for dealing with people in branch is more important in developed
countries
- Figure: Security concerns show less disparity among those who are
registered online, but are still lower in developed countries
- Figure: Only 12% of identity fraud occurs through the online channel
- Figure: Sending OTPs to mobile phones as a second authentication factor is
gaining popularity
- Figure: Use of social media such as Twitter represents a key marketing
opportunity
- Figure: Barclays piloted Microsoft Surface technology in its concept
branch, launched in December 2008
- Figure: Natwest educates consumers on how best to prevent consumers
exposing themselves to identity fraud
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