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27 April 2007
Taipei
As consumers switch in increasing numbers to online banking, the voice of the bank brand is shifting from the High Street to the Web Site, with 32 percent of the world’s Internet users banking online at least two or three times a week, and 14 percent of them claiming to bank online as often as daily, according to a study just released by The Nielsen Company. The top 3 banking services for Taiwanese internet users are ATMs (48%), Internet Banking (26%) and Branches (17%).
The Nielsen Company surveyed 25,408 internet users in 46 markets from Europe, Asia Pacific, North America and the Middle East about how often they use a variety of banking services, including Internet and telephone banking, ATMs and branches. Nielsen also asked respondents how loyal they were to their main bank.
The Nielsen survey found nearly one third of Brazilians and Portuguese (30%) bank online daily, along with around a quarter of Poles (28%), Chileans (27%), Dutch, Kiwis and Estonians (25%) - compared to a global average of 14 percent.
Across the regions, Internet banking appears to have taken off in a big way in Europe and the Pacific, with Europe home to eight of the top 10 markets with upwards of two in three consumers banking online at least once a week. New Zealand and Australia were the other two markets in the top 10 banking online at least once a week. In Taiwan, one in five internet users bank online at least once a week. However, Taiwan ranks No.7 ‘never use internet banking market’ with its 47% claiming never use internet banking.
“The Internet has opened a whole new world to consumers, who now have a host of banking services at their fingertips, without needing to leave their homes or offices, anytime, anywhere,” said Jennifer Tsai, Executive Director, The Nielsen Company Taiwan Ltd. “The convenience and competitive information available to consumers today is unprecedented.”
While virtual banking seems to be the way to go, telephone banking doesn’t seem to be serving much purpose for the majority, particularly in Europe, where Internet banking has replaced any need to speak to the bank in person. A global average of 62 percent claim never to use telephone banking, lead by 93 percent of Japanese. The other nine markets in the top 10 claiming never to use telephone banking were from Europe. In Taiwan, more than two thirds (69%) never use telephone banking.
In spite of increasing Internet penetration, however, over half of respondents (54%) claim to visit a branch at least once a month, lead by Mexicans (78%), Brazilians (72%) and Chinese (71%). Around half (49%) of Taiwanese visit a branch at least once a month.
A global average of 14 percent claim never to visit a branch, and one third claims to visit less than once a month. Swedes were least likely to be seen in a branch, with 36 percent claiming never to visit, followed by the Dutch (34%), Norwegians and Russians (30%). Six of the top 10 markets claiming never to visit branches hailed from Europe, but also included Vietnam (29%), Argentina (26%) and Hong Kong (20%).
And when it comes to loyalty to one’s bank, 37 percent claim to be very loyal to their main bank, with 59 percent of Canadians the most loyal of all, followed by over half of Czechs, Danes and the French. Least loyal to their banks by a long way are the Japanese, with 29 percent claiming not to have any loyalty to their bank, compared to a global average of six percent. Only 17% Taiwanese respondents claim to be very loyal to their main bank. The loyalty is generally lower in Asia Pacific region.
“Globally, with 46 percent of customers claiming to visit their branch only occasionally but less than once a month, banks need to understand how to keep their customers engaged,” said Ms. Tsai. “With only 37 percent claiming to be very loyal, customers are extending their financial services relationships across multiple organizations. Banks need therefore to maximize the impact and effectiveness of their online offering to not only retain existing customers but grow share of wallet. With the move to online, the voice of the brand is shifting from the High Street to the Web Site”.
“Financial organizations need to be tracking online shopping and payment behavior to ensure their online banking customers remain truly engaged with the brand. Given the low loyalty among Taiwanese consumers, unique product and service as well as clear brand image will help to differentiate and win loyalty,” commented Ms. Tsai.
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