Datamonitor – Online Banking Strategies in Europe 2006

Datamonitor – Online Banking Strategies in Europe 2006

Online Banking Strategies in Europe 2006 – This report provides key market and competitor statistics for online banking for a sample of European countries and draws on best practice examples to illustrate the rapidly changing world of online banking.

This is a strategic report from Datamonitor, published on 21 November 2006.

Egg: personalized customer experience and innovation is at the heart of its success
Egg offers a range of products with specific focus on credit cards
Cross-selling and significant marketing investment are Egg’s main strategies to increase its customer base
– Egg is aiming at maintaining critical mass via cross-selling its personal loan to its credit card customers
– Advertising remains a major acquisition tool for Egg
The launch of Egg Money has further strengthened the innovative values of Egg and further raised brand awareness
– Egg Money, launched in September 2005, is a hybrid product combining a credit card, a debit card and overdraft facilities
Collaboration with its customers and regular customer satisfaction surveys ensure that Egg enhances customer experience

Alliance & Leicester: an online bank with a high street presence
The lender is enjoying significant success in terms of Internet sales and servicing
A number of critical success factors are behind Alliance & Leicester ‘s online success

Best practice in encouraging usage of online banking and maximizing cross-selling and sales opportunities
Players need to look at how to increase returns from the online channel
Initiatives in maximizing cross-selling to online customers
Initiatives in encouraging dormant registered online customers to use eBanking
Initiatives in acquiring new customers

There are a number of measures that financial providers can take to promote and encourage customers to bank online
Financial providers should continue to work toward a seamless consumer experience
Financial providers should make use of Internet blogs to attract customers
Promotional incentives remain the quickest way to acquire online customers
Financial providers should add testimonials or success stories to boost confidence about online banking

Facts & Figures
International
– Germany has the highest number of online banking customers in 2005, 2002 and 2005
– The Nordic region has the highest Internet banking penetration, 2005
– Crédit Lyonnais in France is encouraging existing customers to introduce their friends, September 2006
– e.LCL, the eBanking website of French bank Crédit Lyonnais, provides a number of articles for its online customers, September 2006

UK
– Major high street banks in the UK are wooing students via promotional incentives, September 2006

Lloyds TSB
– In the UK, Lloyds TSB probably has one of the most advanced online marketing strategies to logged in customers
– Lloyds TSB uses customer information to encourage use of accounts

Alliance & Leicester
Alliance & Leicester two-factor authentication process: We know it’s you…You know it’s us….
Alliance & Leicester uses its online channel to generate leads for its call center and branches, August 2006
Alliance & Leicester is able to reduce application process time by providing useful information online, August 2006
Figure 18: Alliance & Leicester appeared twice in Moneyfact’s current ‘Best Buys’ table for discounted variable mortgage products targeted at first-time buyers, September 2006
Figure 19: Alliance & Leicester uses demonstrations to introduce customers to Internet banking, September 2006
Alliance & Leicester uses pop-ups in the mortgage section of its website to offer the services of an online agent, September 2006

Egg
Egg and First Direct are examples of standalone online players offering account aggregation to encourage usage from customers, September 2006
Egg invests significantly in raising brand and product awareness, Q3 2004 – Q3 2005
Egg is the biggest advertising spender among standalone Internet banks in the UK, 2003-2005

Barclays
– Barclays Bank is using a substantial amount of the screen to promote products
– Barclays has introduced ‘instant access’ in the UK

HSBC
– HSBC promotes products inside the online customer’s secured site

Cahoot
– Cahoot is encouraging uptake of other products by displaying all products as if the customer already had them

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Based in London, Christophe is an entertaining social media keynote speaker and a trusted advisor to the global financial services industry on the topics of social media, social business and digital innovation. Christophe has contributed to over 140 events in 18 countries. Currently, Christophe is 'Social Media Senior Managing Consultant' at IBM Interactive Experience. He's also a Digital Advisor at the Financial Services Forum and the Moller Centre (part of the Churchill College in Cambridge). Christophe's views on VisibleBanking.com are his own, not necessarily his employer's.

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