Table of Contents
Issues in the Market
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- Key issues
- Abbreviations
Future Opportunities
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- Time for the bank manager to defer to the customer?
- Time to switch off?
Market in Brief
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- UK consumers are split: should they embrace change…?
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- Figure 1: Approach towards emerging technology among consumers, May 2010
- … or should they steer clear of untried technology?
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- Figure 2: Use of new banking technology, May 2010
- Why segmentation matters
- Online banking now entirely routine…
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- Figure 3: Preferred channel for banking services, May 2010
- … and seven in ten have bought at least one product online
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- Figure 4: Types of financial services products arranged online, May 2010
- A fifth have used mobile banking…
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- Figure 5: Financial transactions performed using a mobile phone, May 2010
- … with the fear of losing a phone holding back the market
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- Figure 6: Attitudes towards mobile banking services, May 2010
- Chip and PIN good enough for many
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- Figure 7: Statements on touch and go technology in credit/debit cards, May 2010
- Adding payment technology to mobiles…?
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- Figure 8: Level of interest in using mobile phones to make payments in shops and other outlets, May 2010
- “The idea horrifies me”
Technology Ownership and Usage
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- Key points
- The rapid growth of broadband
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- Figure 9: Broadband penetration, 2004-09
- Price comparison sites and online transactions are routine
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- Figure 10: Types of activity undertaken on the internet, October 2008 to October 2009
- Mobile internet gains ground
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- Figure 11: Device ownership summary, October 2008-Nov 2009
Online Banking
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- Key points
- Online banking hasn’t changed who we bank with…
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- Figure 12: The number of personal customers registered for telephone and internet banking, and the number of transactions, 2003-08
- … but it has changed how we bank with them
- Increasing customers’ expectations?
- A clear shift in preferences…
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- Figure 13: Preferred channel for banking services, May 2010
- … but although they’ll research online, many prefer to buy face-to-face
- The personal service pushback
Consumers and Online Purchasing
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- Key points
- Motor insurance still standing out from the crowd
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- Figure 14: Types of financial services products arranged online, May 2010
- Considerable scope for growth – but at what cost?
- Direct-to-consumer fund supermarkets – a product that has found its moment?
- The digital divide – old versus young…
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- Figure 15: Types of financial services products arranged online, by gender, age, affluence and household income, May 2010
- … or rich versus poor?
Attitudes Towards Online Banking
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- Key points
- Taking control of your finances
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- Figure 16: Statements on online banking and security, May 2010
- The security issue
- Bank branches key for the less experienced
- Even those who are prepared to buy online won’t desert the high street
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- Figure 17: Statements on online banking and security by willingness to buy financial services products online, May 2010
Web 2.0/Social Networking
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- Key points
- Many are struggling to get a handle on how to use social networking
- Picking up on buzz
- Intrusive? Or responsive?
- Social networks as a data gathering tool
- The risks of inviting criticism…
- … and the risks of uncontrolled communication
- Reaction to the FSA’s statement on new media
- Barclaycard – going beyond social networking
- Waterslide – an accidental online sensation
- Capitalising on the initial enthusiasm
- Fitting the media to the message
- How to manage social networking in a banking giant
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- Figure 18: BarclaycardNews Twitter feed, 23 July 2010
- Turning to the experts
- Internal marketing – external successes
- Informed Choice – education and client acquisition
- Freedom to act
- Building profile
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- Figure 19: The Informed Choice blog, July 2010
- Targeting different consumer groups
- Expanding channels of communication
- Measuring responses
- “Just another media channel”
Mobile Banking
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- Key points
- The UK now has more mobile subscribers than people…
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- Figure 20: Mobile phone subscribers, 2004-09
- … and smartphone ownership starts to reach critical mass
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- Figure 21: Smartphone ownership, July 2010
- Monitise dominates UK mobile banking
- Text banking – the mobile middle ground
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- Figure 22: Financial transactions performed using a mobile phone, May 2010
- Mobile transactions are still rare
- Mobile banking – it’s a young man’s game…
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- Figure 23: Proportion of adults who have used mobile banking services, by gender, age and region, May 2010
- … and it helps if you can get hold of the latest handset
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- Figure 24: Proportion of adults who have used mobile banking services, by affluence, income and mobile phone provider, May 2010
- Charging structure could confuse some customers…
- ... but most are reluctant to pay anything at all for the service
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- Figure 25: Attitudes towards mobile banking services, May 2010
- Is it a question of allaying security fears…
- … creating demand for the service…
- … or just letting people know that the service exists?
- Even those who have used the service are wary
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- Figure 26: Statements on mobile banking services among those who have used the service, May 2010
Contactless Payments
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- Key points
- The rollout continues…
- … but acceptance is still limited
- Barclaycard leading the charge
- Cost not an issue for consumers, but potentially a barrier for retailers
Consumer Attitudes Towards Contactless Payments
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- Key points
- Do people want to change?
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- Figure 27: Statements on touch and go technology in credit/debit cards, May 2010
- Allaying security fears
- The mismatch between reality and consumer perception…
- … leads to a real risk of consumer dissatisfaction
- You can’t please all the people all of the time
- Little sign that the Oystercard is acting as a gateway technology
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- Figure 28: Attitudes towards touch and go technology in credit/debit cards, by region, May 2010
- Adoption pattern very different to mobile banking
- Cash-rich, time-poor – every second counts
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- Figure 29: Attitudes towards cash and faster payments, by household income, May 2010
Integrating Mobile and Contactless Technology
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- Key points
- The logical evolution of the mobile phone…
- … and the barriers are logistical, not technological
- Numerous trials but no mass-market launch
- Transport could provide the ‘killer app’
- Consumers take a ‘wait and see’ approach…
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- Figure 30: Level of interest in using mobile phones to make payments in shops and other outlets, May 2010
- … and security, again, is a huge barrier
- It’s all about the handset
- The appeal of speed
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- Figure 31: Interest in using mobile phones to make payments in shops and other outlets, by attutides towards contactless payments, May 2010
Identifying the Early Adopters
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- Key points
- A third are ready to embrace change
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- Figure 32: Approach towards emerging technology among consumers, May 2010
- Generational change
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- Figure 33: Approach towards emerging technology among consumers, by demographics, May 2010
- Two in five early adopters have already tried mobile banking…
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- Figure 34: Financial transactions performed using a mobile phone, by target groups, May 2010
- … but even they won’t pay for it
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- Figure 35: Statements on mobile banking services, by approach towards emerging technology, May 2010
- The influence of existing technology
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- Figure 36: Statements on touch and go technology in credit/debit cards, by approach towards emerging technology, May 2010
- A danger of annoying loyal customers?
- Early Adopters like the idea of mobile payments
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- Figure 37: Level of interest in using mobile phones to make payments in shops and other outlets, by approach towards emerging technology, May 2010
- The strategic importance of Early Adopters
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- Figure 38: Preferred purchasing channel, by target groups, May 2010
Appendix – Consumers and Online Purchasing
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- Figure 39: Types of financial services products that people have bought over the internet, by demographics, May 2010
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- Figure 40: Further types of financial services products that people have bought over the internet, by demographics, May 2010
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- Figure 41: Types of financial services products that people would consider arranging over the internet, by demographics, May 2010
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- Figure 42: Further types of financial services products that people would consider arranging over the internet, by demographics, May 2010
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- Figure 43: Types of financial services products that people wouldn’t consider arranging over the internet, by demographics, May 2010
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- Figure 44: Further types of financial services products that people wouldn’t consider arranging over the internet, by demographics, May 2010
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- Figure 45: Types of financial services products that people wouldn’t consider buying, by demographics, May 2010
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- Figure 46: Further types of financial services products that people wouldn’t consider buying, by demographics, May 2010
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Appendix – Online Banking
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- Figure 47: Banking services that people prefer to access face to face, by demographics, May 2010
- Figure 48: Further banking services that people prefer to access face-to-face, by demographics, May 2010
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- Figure 49: Banking services that people prefer to access over the telephone, by demographics, May 2010
- Figure 50: Banking services that people prefer to access over the internet, by demographics, May 2010
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- Figure 51: Further banking services that people prefer to access over the internet, by demographics, May 2010
- Figure 52: Key banking services that people prefer to access via mobile phone or ATM, by demographics, May 2010
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- Figure 53: Banking services that people don’t use, by demographics, May 2010
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Appendix – Attitudes Towards Online Banking
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- Figure 54: Most popular statements on online banking and security, by demographics, May 2010
- Figure 55: Next most popular statements on online banking and security, by demographics, May 2010
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Appendix – Mobile Banking
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- Figure 56: Financial transactions performed using a mobile phone, by demographics, May 2010
- Figure 57: Most popular statements on mobile banking services, by demographics, May 2010
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- Figure 58: Next most popular statements on mobile banking services, by demographics, May 2010
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Appendix – Contactless Payments
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- Figure 59: Most popular statements on touch and go technology in credit/debit cards, by demographics, May 2010
- Figure 60: Next most popular statements on touch and go technology in credit/debit cards, by demographics, May 2010
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Appendix – Integrating Mobile and Contactless Technology
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- Figure 61: Level of interest in using mobile phones to make payments in shops and other outlets, by demographics, May 2010
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Appendix – Identifying the Early Adopters
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- Figure 62: Approach towards emerging technology among consumers, by demographics, May 2010
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