Asia Internet banking - case of the obvious?
(Asia) - Results of an end user study analysing Internet banking penetration and channel usage across Australia, China, Hong Kong, Korea, Singapore and Taiwan has produced some useful benchmarks.
An IDC study has provided some strong evidence for the viability of more advanced services like account aggregation and online wealth management being key needs for Internet banking customers in the region. Additional analysis has included less surprising outcomes:
The Internet as a channel will increase transaction volumes in the short term, with transaction volumes growing at a faster rate than the decrease in physical branch transactions.
Customers showing the fewest branch visits are the most active online, unsurprisingly perhaps, although the "problem" customer (one who does both regularly) persists.
Internet banking is no longer the province of the young with a bank's best Internet customer (high Internet activity, low branch activity) being in the 25-55 age group and with high-income levels.
Customers report utilising Internet banking way more than transaction volumes indicate, with banks able to build a large, loyal web-using customer base by offering a good quality, informative site.
Online origination of offline purchases can also be achieved by using the web to educate customers before they appear at a branch.
Essentially the study concludes by noting banks need to better segment their customers according to channel usage in order to reduce delivery cost and lift customer profitability.
The Internet as a channel will increase transaction volumes in the short term, with transaction volumes growing at a faster rate than the decrease in physical branch transactions.
Customers showing the fewest branch visits are the most active online, unsurprisingly perhaps, although the "problem" customer (one who does both regularly) persists.
Internet banking is no longer the province of the young with a bank's best Internet customer (high Internet activity, low branch activity) being in the 25-55 age group and with high-income levels.
Customers report utilising Internet banking way more than transaction volumes indicate, with banks able to build a large, loyal web-using customer base by offering a good quality, informative site.
Online origination of offline purchases can also be achieved by using the web to educate customers before they appear at a branch.
Essentially the study concludes by noting banks need to better segment their customers according to channel usage in order to reduce delivery cost and lift customer profitability.
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