Consumer Attitudes to Online Current Accounts

Transcription

1 Brochure More information from Consumer Attitudes to Online Current Accounts Description: Consumer attitudes toward using the online channel for current account transactions are constantly evolving. Ongoing technological advancement as well as demographic and lifestage complexities are driving these shifts in attitude. Current account providers must understand what consumers want from the online channel in order to maximize the advantages that it can bring to their business. Scope - Using global data from our FSCI survey this report identifies how consumer attitudes towards the online channel are changing. - The report analyzes the causes of these shifts and identifies strategies that can be employed by providers to attract and retain online customers - The report discusses the opportunities and threats faced by current account providers wanting to develop their online strategy Highlights of this title The online channel is currently not being used to its maximum capability. Nearly all (97%) of those registered online for their current/checking account have used the channel to check their balance, but remarkably less one fifth had used it to order a new card, check book or paying in book. Mobile banking is expected to take the same upwards trajectory as online banking and is expected to grow faster. Over half of consumers globally believe they are 'at least somewhat likely' to conduct banking through a mobile device in the next 12 months. Take-up is expected to be particularly prominent in emerging markets by reaching the unbanked. Security concerns are the main deterrent to consumers' use of the online channel 48% those consumers who are not registered online agreed that it was a reason why they were not. With 30% of current account holders still not registered for online facilities, this a concern which banks must address. Key reasons to purchase this title - Access the results of Datamonitor's Global FS Consumer Insight survey, enabling you to understand shifting online attitudes and behaviours. - Identify why these changes are occurring, and understand the future implications for the online channel. - Identify actionable strategies that can help encourage consumers to engage with the online channel. 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

2 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 Eurozone and US consumers check their balance more frequently than others 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 List of Tables Table 1: Global internet penetration Table 2: Product holdings among those who have used online banking in the last six months or bought financial services online Table 3: Product holdings in Asia Pacific Table 4: Product holdings in BRIC countries Table 5: Product holdings in Eurozone and US Table 6: Internet penetration and online registration for current/checking accounts by country Table 7: Online registration for current/checking accounts by age Table 8: Product holdings by age Table 9: Online banking will never replace branch banking by country

3 Table 10: Tasks conducted through online banking over the last six months (of those who have a current account/checking account) Table 11: Tasks conducted online over the last six months by region Table 12: How often do you check your bank balance? Table 13: Consumers who avoid opening their bank statements, by country and region Table 14: Mobile telephone subscribers per 100 inhabitants Table 15: Tasks conducted online by urban Indians Table 16: Why not online banking? Table 17: Security concerns by age Table 18: Of those that have never used online banking or bought financial services online, security concerns and preference to deal in branch by country Table 19: 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 20: Proportionate identity fraud data List of Figures Figure 1: Internet penetration has shown consistent growth since 2000 Figure 2: Internet penetration is highest in North America but the majority of internet users are in Asia Figure 3: Current/checking accounts are the most popular product to be registered online for Figure 4: Current account online registration is the most popular in all Eurozone countries and the US Figure 5: The BRIC countries have the lowest levels of internet penetration but comparatively high online registration levels for current/checking accounts Figure 6: Online registration is most popular for current accounts across all demographics Figure 7: Most consumers registered to use their current/checking account online are between 25 and 64 years old Figure 8: Half of the global population believes that online banking will never replace branch banking in their eyes Figure 9: The simplest and most frequently required tasks are the most popular on the online platform Figure 10: Task preference shows some regional variation Figure 11: Eurozone and US consumers check their bank balances most frequently Figure 12: Consumers who avoid opening their bank statements by region Figure 13: Mobile phone subscriptions have steadily increased since 1997 Figure 14: The mobile banking platform has increased in sophistication with the introduction of 'smartphones' Figure 15: Mobile banking is expected to follow the same trajectory as online banking Figure 16: Checking balances is the most popular function on the mobile banking platform in India Figure 17: Mobile bankers in the UK appear to use the service during 'dead' time as a convenience Figure 18: Monitise predicts the most growth for mobile banking in the Asia Pacific region Figure 19: Mobile banking was found to be most popular with lower income users in India Figure 20: UBank has pioneered the use of social media in Australia Figure 21: Security concerns are the biggest deterrent to registering online Figure 22: Security concerns span all age groups Figure 23: Security concerns are greater in emerging markets, whereas a preference for dealing with people in branch is more important in developed countries Figure 24: Security concerns show less disparity among those who are registered online, but are still lower in developed countries Figure 25: Only 12% of identity fraud occurs through the online channel Figure 26: Sending OTPs to mobile phones as a second authentication factor is gaining popularity Figure 27: Use of social media such as Twitter represents a key marketing opportunity Figure 28: Barclays piloted Microsoft Surface technology in its concept branch, launched in December 2008 Figure 29: Natwest educates consumers on how best to prevent consumers exposing themselves to identity fraud Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and send to Research and Markets, Guinness Centre,

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