Deutsche Bank Research
5
Digital economy and structural change E-Banking Snapshot 35 Author Thomas Meyer +49 69 910-46830 [email protected] Editor Antje Stobbe Technical Assistant Sabine Kaiser Deutsche Bank Research Frankfurt am Main Germany Internet: www.dbresearch.com E-mail: [email protected] Fax: +49 69 910-31877 Managing Director Thomas Mayer Online banking adoption in Europe: four clusters. Unsurprisingly, Northern European countries are home of the most enthusiastic online bankers with adoption rates of 62-77%. The European core (e.g. Germany, France, UK) constitutes a second cluster with rates between 35 to 54%. The US (41%) would also fit into this group. Most countries with adoption rates below 32% are in Southern and Eastern Europe (Ireland is an exception). Finally, there is group of rather poor countries where online banking has barely taken hold. chart 1 Trend towards online banking proceeds unabated. Currently, every third European uses online banking and there are no signs of a slowdown in adoption. By 2020, more than 60% of Europeans may use online banking. chart 2 & chart 3 It’s not the distance. Some say that the Nordic countries are ahead because of their low population density and thus the long ways to the next branch. But the facts don’t corroborate this view. Inhabitants of densely populated areas are more likely to bank online. chart 4 Women are the future. Across Europe, women are less likely to use online banking than men. Yet, access to the labour market appears to play a key role here: the higher the female participation rate, the smaller the gender gap. Having a job raises financial self-directedness. In fact, where participation rates are the same for men and women (for instance in Latvia), women are more likely to use online banking than men. chart 5 The internet is important beyond online banking. Evidence from Germany indicates that the internet has a much bigger role as a source of information than as either a transaction or sales channel. A new study which recorded actual internet traffic finds that the popularity of online research is much higher than previously thought (the full study is available here ). chart 6 Banks’ websites and search engines have the highest reach. In their quest for financial information, customers visit primarily the websites of banks and use search engines for guidance and as navigation tool. This gives banks a head start when it comes to delivering relevant information to their customers. chart 7 Online research corresponds to financial market trends. Search volumes for financial products are a good indicator of consumer action. The interest in a typical old-age provision scheme for instance reflects both the saisonal nature of the product (a deal in the old year secures the entire’s year subsidy) as well as the overall trend. chart 8 The Web 2.0 audience is large, attractive but also elusive. Financial firms have started to experiment with social media – particularly in the US. They struggle to square the open communication culture of the Web 2.0 with the privacy and regulatory standards of the financial sector. Yet, there is no alternative: the digital natives in particular are increasingly difficult to reach through other channels. chart 9 November 2010 Online banking and research: The state of play in 2010
-
Upload
michael-green -
Category
Documents
-
view
23 -
download
2
description
Online banking and research:The state of play in 2010
Transcript of Deutsche Bank Research
Dig
ita
l e
co
no
my a
nd
stru
ctu
ra
l ch
an
ge
E
-B
an
kin
g S
na
psho
t 3
5
Author
Thomas Meyer
+49 69 910-46830
Editor
Antje Stobbe
Technical Assistant
Sabine Kaiser
Deutsche Bank Research
Frankfurt am Main
Germany
Internet: www.dbresearch.com
E-mail: [email protected]
Fax: +49 69 910-31877
Managing Director
Thomas Mayer
Online banking adoption in Europe: four clusters. Unsurprisingly, Northern
European countries are home of the most enthusiastic online bankers with
adoption rates of 62-77%. The European core (e.g. Germany, France, UK)
constitutes a second cluster with rates between 35 to 54%. The US (41%) would
also fit into this group. Most countries with adoption rates below 32% are in
Southern and Eastern Europe (Ireland is an exception). Finally, there is group of
rather poor countries where online banking has barely taken hold. chart 1
Trend towards online banking proceeds unabated. Currently, every third
European uses online banking and there are no signs of a slowdown in adoption.
By 2020, more than 60% of Europeans may use online banking. chart 2 & chart 3
It’s not the distance. Some say that the Nordic countries are ahead because of
their low population density and thus the long ways to the next branch. But the
facts don’t corroborate this view. Inhabitants of densely populated areas are more
likely to bank online. chart 4
Women are the future. Across Europe, women are less likely to use online
banking than men. Yet, access to the labour market appears to play a key role
here: the higher the female participation rate, the smaller the gender gap. Having
a job raises financial self-directedness. In fact, where participation rates are the
same for men and women (for instance in Latvia), women are more likely to use
online banking than men. chart 5
The internet is important beyond online banking. Evidence from Germany
indicates that the internet has a much bigger role as a source of information than
as either a transaction or sales channel. A new study which recorded actual
internet traffic finds that the popularity of online research is much higher than
previously thought (the full study is available here). chart 6
Banks’ websites and search engines have the highest reach. In their
quest for financial information, customers visit primarily the websites of banks and
use search engines for guidance and as navigation tool. This gives banks a head
start when it comes to delivering relevant information to their customers. chart 7
Online research corresponds to financial market trends. Search
volumes for financial products are a good indicator of consumer action. The
interest in a typical old-age provision scheme for instance reflects both the
saisonal nature of the product (a deal in the old year secures the entire’s year
subsidy) as well as the overall trend. chart 8
The Web 2.0 audience is large, attractive but also elusive. Financial
firms have started to experiment with social media – particularly in the US. They
struggle to square the open communication culture of the Web 2.0 with the privacy
and regulatory standards of the financial sector. Yet, there is no alternative: the
digital natives in particular are increasingly difficult to reach through other
channels. chart 9
November 2010
Online banking and research:
The state of play in 2010
E-Banking Snapshot 35 Online banking and research
November 2010 2
Online-banking adoption in Europe: four clusters. Unsurprisingly, Northern European countries are home of the most enthusiastic online bankers with adoption rates of 62-77%. The European core (e.g. Germany, France, UK) constitutes a second cluster with rates between 35 to 54%. The US (41%) would also fit into this group. Most countries with adoption rates below 32% are in Southern and Eastern Europe (Ireland is an exception). Finally, there is group of rather poor countries where online banking has barely taken hold. back to front page
Trend towards online banking proceeds
unabated. Currently, every third
European uses online banking and
there are no signs of a slowdown in
adoption. The highest growth rates can
be seen in Southern and Eastern
Europe indicating a catch-up process.
By 2020, more than 60% of Europeans
may use online banking. back to front
page
Sources: DB Research, Eurostat, Pew, 2010
European clusters of online banking
Online banking adoption, %
77
71
73
72
72
62
66
41
42
45
46 54
35
16
16
21
18 26
24 17
2
2
42
32
30
5
16 24
41
Northern enthusiasts
European core
Southern and Eastern Europe
Holdouts
1
0
10
20
30
40
50
60
70
80
2009 2008 2007 2006 2005 2004
EU Germany Scandinavia
Trend towards online banking is unabated
% of online banking users
Sources: DB Research, Eurostat, 2010 2
R² = 0.59
0
10
20
30
40
50
60
70
80
90
0 10 20 30 40 50
Catch-up in progress
Online banking adoption, 2009
Sources: DB Research, Eurostat, 2010 CAGR 5y (%)
Adoption rate (%)
LV
SE
DE
PT
LT
GR
HU
IS
EE
UK
EU
NO
PL
3
E-Banking Snapshot 35 Online banking and research
November 2010 3
It’s not the distance. Some say that the
Nordic countries are ahead because of
their low population density and thus
the long ways to the next branch. But
the facts don’t corroborate this view.
Inhabitants of densely populated areas
are more likely to bank online (even in
Scandinavia) which means that
adoption would be even higher in the
North were it more populated. back to
front page
Women are the future. Across Europe,
women are less likely to use online
banking than men. The average gender
gap is 16% of the total adoption rate.
Yet, access to the labour market
appears to play a key role here: the
higher the female participation rate, the
smaller the gender gap. Having a job
raises financial self-directedness. In
fact, where participation rates are the
same for men and women (for instance
in Latvia), women are more likely to
use online banking than men. And
participation rates are converging
(slowly) across Europe. back to front
page
The internet is important beyond online
banking. Evidence from Germany
indicates that the internet has a much
bigger role as a source of information
than as either a transaction or sales
channel. A new study which recorded
actual internet traffic finds that the
popularity of online research is much
higher than previously thought (the full
study is available here). Former studies
have relied solely on questionnaires in
which customers tend to underrate their
internet activities. back to front page
78
44 37
74
39 32
67
35
26
0
10
20
30
40
50
60
70
80
90
Scandinavia Germany EU
Dense Middle Sparse
Sources: DB Research, Eurostat, 2010
Online banking adoption by population density (%) Big city lights
4
R² = 0.69
-20
-10
0
10
20
30
40
50
60
70
80
-10 0 10 20 30 40
Sources: DB Research, Eurostat, 2010
Labour-market participation explains gender gap
France
Portugal Italy
Greece
Sources: DB Research, Eurostat, 2010
2009
Gender gap in labour-force participation (male - female, pp)
Gender gap in online banking adoption (male rate - female rate in % of total adoption rate)
Labour-market participation explains gender gap
France
Portugal Italy
Greece
Czech Republic
Germany
Latvia EU
5
65
53
13
2
0
10
20
30
40
50
60
70
Research financial products*
Use online banking
Purchase financial products
Use mobile banking
Sources: Accenture, Eurostat, DB Research, GfK, Google, 2010
Research trumps transactions
% of German internet users, 2009/2010
*Figures are recorded from actual internet traffic of 5,000 volunteers. Website visits related to online banking are eliminated.
6
E-Banking Snapshot 35 Online banking and research
November 2010 4
Banks’ websites and search engines have the highest reach. In their quest for financial information, customers visit primarily the websites of banks and use search engines for guidance and as navigation tool. This gives banks a head start when it comes to delivering relevant information to their customers. Financial news and price comparison sites attract a smaller audience. back to front page Online research corresponds to financial market trends. Search volumes for financial products are a good indicator of consumer action. The interest in a typical old-age provision scheme (named colloquially after its sponsor Walter Riester) for instance reflects both the saisonal nature of the product (a deal in the old year secures the entire’s year subsidy) as well as the overall trend. The typical peaks in search volume by the end of each year have become smaller corresponding to the slowdown in sales. back to front page The Web 2.0 audience is large, attractive but also elusive. Financial firms have started to experiment with social media – particularly in the US. They struggle to square the open communication culture of the Web 2.0 with the privacy and regulatory standards of the financial sector. Many users don’t want to be “friends” with their bank unless there is a meaningful dialogue. Yet, there is no alternative: the digital natives in particular have grown accustomed to using social media for work, travel, shopping, romance and other communication and they are increasingly difficult to reach through other channels. back to front page
79
65 59 59
21
0
10
20
30
40
50
60
70
80
90
Any Twitter Facebook YouTube None
Experiments in social media
% of global financial services firms using these social media tools
Source: Forrester Research Inc., 2010
Basis: 38 global financial services firms
9
1
2
13
16
16
18
20
30
65
0 10 20 30 40 50 60 70
Financial portals
Online brokers
Price comparison sites
Savings banks
Financial news sites
Direct banks
Commercial banks
All
Source: DB Reseacrh, GfK, Google, 2010
% of German internet users accessing sites of these providers to look up financial information per quarter
Financial research: Where to look for information?
Figures are recorded from actual internet traffic of 5,000 volunteers. Website visits related to online banking are eliminated.
7
0
5
10
15
20
25
30
35
40
45
50
2004 2005 2006 2007 2008 2009 2010*
Annual change in sales of "Riester" products (%, left)
Sources: BMAS, DB Research, Google, 2010
End-of-year rush for subsidies
Germany
*Estimate
8
0
10
20
30
40
50
60
70
80
90
100
Weekly search volume for Riester (normalised, right)
E-Banking Snapshot 35 Online banking and research
November 2010 5
© Copyright 2010. Deutsche Bank AG, DB Research, D-60262 Frankfurt am Main, Germany. All rights reserved. When quoting please cite “Deutsche Bank
Research”.
The above information does not constitute the provision of investment, legal or tax advice. Any views expressed reflect the current views of the author, which do
not necessarily correspond to the opinions of Deutsche Bank AG or its affiliates. Opinions expressed may change without notice. Opinions expressed may differ
from views set out in other documents, including research, published by Deutsche Bank. The above information is provided for informational purposes only and
without any obligation, whether contractual or otherwise. No warranty or representation is made as to the correctness, completeness and accuracy of the
information given or the assessments made.
In Germany this information is approved and/or communicated by Deutsche Bank AG Frankfurt, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht.
In the United Kingdom this information is approved and/or communicated by Deutsche Bank AG London, a member of the London Stock Exchange regulated by
the Financial Services Authority for the conduct of investment business in the UK. This information is distributed in Hong Kong by Deutsche Bank AG, Hong
Kong Branch, in Korea by Deutsche Securities Korea Co. and in Singapore by Deutsche Bank AG, Singapore Branch. In Japan this information is approved
and/or distributed by Deutsche Securities Limited, Tokyo Branch. In Australia, retail clients should obtain a copy of a Product Disclosure Statement (PDS)
relating to any financial product referred to in this report and consider the PDS before making any decision about whether to acquire the product.
ISSN Internet: 1619-4829 / ISSN e-mail: 1619-6465
