Anita Hawser, European Editor, Global Finance

1. Global Trends in Online
Banking
Anita Hawser
European Editor
Global Finance
www.gfmag.com

2. Bricks versus clicks

5. The UK’s first online
“pure play”
• It took Egg 10 weeks to attract
£1 billion in deposits
• Within the first six months it had £5
billion in deposits, well ahead of
target.

11. Online savers better off
• “An online saver could be 37%
better off over a year, compared
with someone opting for the best
deal in a branch”
• Source: Which, UK consumer watchdog

13. Online banking
reality check
• Online access failures
(Users could not log on to Egg.com
for more than a day but there was
no customer notification)
• Online banking fraud

14. Online fraud declining
January to June 2010
Online bank account fraud fell
36% from 2009’s half-year
figure
Source: UK Cards Association

15. Reasons for decline in
online fraud
• Increased customer awareness of
phishing scams
• Increased use of anti-virus software
• More sophisticated fraud detection by
banks
• Additional authentication - MasterCard
SecureCode and Verified by Visa

16. Increasing customer
confidence in online
• 44% of US survey respondents felt
more secure on their bank’s web site
(comScore 2010 State of Online Banking)
• “It is imperative that banks find
ways to tap into the market
segment that does not bank
online for security reasons.”

17. Online banking growth
• In the UK, 21.5 million customers
bank online (35% of the UK’s total
population
Growth in online banking is at an
evolutionary rather than revolutionary
pace?

21. Online bill pay
• “A new milestone has been reached in
the online banking world with the
widespread adoption of online bill pay,
now utilised by 64% of the online
banking community, up 19 points from
the previous year.”
(comScore 2010 State of Online Banking)

22. Mint.com tracks $175 billion in transactions,
$47 billion in assets and has identified more
than $300 million in potential savings for users

25. Online banks and social media
• Who is using social media to engage in two-way
communications with their online bank?
• 11% of financial institutions on the UK FTSE 500 use
Twitter to engage with customers
• More than 90% of telecoms companies use social
media for two-way communications, compared to just
4% of banks
• (Source: Kencall 2010)

26. The future is mobile and
multi-channel
Banking the “unbanked”
In developing markets like Africa there are more
people with mobile phones than bank accounts
Mobile money transfer service M-PESA has more
than 7 million customers (no bank accounts involved)