(21 December 2011 – Australia) The past three years have seen an increase in the average primary supplier’s share of account wallet across the Institutional market accompanying a declining use of secondary providers, new research from East & Partners’ latest Institutional Transaction Banking Markets report has shown.Across the seven product silos measured by East’s research program, primary
supplier share of account wallet has risen in six, the single exception being
Cross Border Payments, where secondary providers have grown share.
Average wallet share for Cross Border Payments has decreased from 83.1 percent
in 2008 to 71.2 percent in 2011. This parallels similar trends East has
quantified in other transaction banking market segments – an increasing
occurrence of banked-away FX and Cross Border products.
Institutional customers are banking upwards of 92 percent of their wallet in
Account Services and Cash Management and more than 95 percent in Payment
Processing, Remittance Processing, Internet Banking and Desktop Banking with
their primary bank. These percentages have all risen by at least two and in some
cases by over 7 percent during the last three years.
Average Primary Supplier’s Share of Account Wallet
| |
Average % of Business per Primary Relationship |
|
| |
May 2011 |
Nov 2011 |
| | (N: 441) | (N: 442) |
| Account Services & Cash Management | 90.1 | 92.2 |
| Payment Processing | 97.4 | 97.8 |
| Remittance Processing | 98.8 | 99.1 |
| Internet Banking | 94.9 | 95.6 |
| Desktop Banking (formerly Integrated e-Banking) | 99.7 | 99.8 |
| Cross Border Payments | 73.6 | 71.2 |
| Full Service International Transaction Banking | 82.4 | 83.3 |
East & Partners’ Head of Client Services Amy Nixon commented, “There is a
growing trend establishing throughout the Institutional Banking market that
demonstrates when credit tightens and the market environment is volatile the
influence of the Primary Bank becomes stronger.”
“This trend has seen many businesses reduce their engagement with their
secondary banks as a way to increase their leverage with their Primary Bank and
respond to credit access messaging from their core banks” Ms Nixon added.
About East & Partners’ Australian Institutional Transaction Banking Markets
report
A six monthly analysis of the Top 500 Australian Institutions presenting
detailed market share, brand recognition, share of mind and customer
satisfaction ratings across:
-
Account Services and Cash Management
-
Payment Processing
-
Remittance Processing
-
Internet Banking
-
Desktop Banking
-
Cross Border Payments
- Full Service International TB
In addition, 27 service and relationship attributes are rated by
Institutional customers, bank-by-bank. The Institutional market in East &
Partners’ segmentation bottoms at enterprises with annual turnovers of AUD$530
million.
For more information or for further interview based insights from East &
Partners, please contact:
Sian Dowling
Marcomms & Client Services
East & Partners
t: 02 9004 7848
m: 0420 583 553
e: sian.d@eastandpartners.com