2010 Baltic E Banking Report[1]

8/3/2019 2010 Baltic E Banking Report[1]

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2010Baltic E-Banking ReportResults of 8th annual research study

Presented at Baltic Economic Forum 2010 23rd September 2010, Riga, Latvia


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Session: The influence of the global financial

crisis on the banking industryin the BalticStates: lessons learned and road ahead.

baltic market

technology trends

mobile internet

innovation tools


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Baltic Market Outlook

Financial CrisisGDP drop - IMF bailouts

Decrease on Real Estate pricesWages of public employees cut

UnemploymentSmall indicators of economic growth

Technology accelerationMobile penetration


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59% of banks reported decreased customer

loyalty since the financial crisis

63% say their customers are more pricesensitive

63% say their customers are shopping

around and more frequently

The banks that will win the race to profitabilitywill be those that recognize their customer

relationships have changed for better

Market transformation during the crisis

Source: http://newsroom.accenture.com/article_display.cfm?article_id=5035

According to Accenture research in 2010:
http://newsroom.accenture.com/article_display.cfm?article_id=5035http://newsroom.accenture.com/article_display.cfm?article_id=5035http://newsroom.accenture.com/article_display.cfm?article_id=5035


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GO ONLINE / GO MOBILE


More than 75% of users dont realize that their

bank has mobile banking. Of those who are aware,

half use the service.

Source: FORBES
http://newsroom.accenture.com/article_display.cfm?article_id=5035http://newsroom.accenture.com/article_display.cfm?article_id=5035


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87% of online banking users access

their banks website more than once

a week

Source: Forbes 2010 ForeSee ONline Financial Services Study

87%


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29% havent enrolled in online billpay because they are worried about

security

Source: ComScore State of Online Banking 2010

29%


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How do you drive through crisis

Customers Banks

Reduce visit to branches Realize reduction of costs

Reduce calling to call centers Save money in call centers

Generate more transactions Reduce cost of services

Have more privacy over operations Clients feel more secure

Be more aware of money Marketing savings products

The only good way to gain customer satisfaction and

reduce costs is to build convenient tools which will make

users independent decision and flexible without visiting

the branches by automating most of the stuff online



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2010Baltic E-Banking Report


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independentresearch study


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of retail banks

electronic communication

channels


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which are

Public WebsiteInternet Banking System

Mobile

Social Media


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conducted in

countries 3Lithuania

Latvia

Estonia


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since 2003


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banks

covered

42+3 this year


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6 categories

30 sub-categories

550individual criteria

structured into


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innovationnew criteria


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Innovation

Financial Tracking ToolsSocial Media Usage

Live Online Support


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Why Innovation is important

57% use social media networks only

to connect with friends and family.

Source: Mintel

22%think that social mediasites help them make

good purchase decision


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highlight

resultsE-Banking Report 2010


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functionalitycriteria


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It aims to evaluate the variety of functions

that banks offer to their customers online.

Functions and services grouped are into 15

logical subcategories for evaluation.

1. Sign-up 2. Login 3. Transactions 4. Account information

5. Payment options 6. Deposits 7. Loans 8. Leasing

9. Security measures 10. Languages 11. Help system 12. Investment

13. Payment cards 14. Insurance 15. Other services

methodology

functionality


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Results of Functionality in Lithuania

Functionality


24/64

0 2040 60

80 100

Swedbank

SEB bankas

Bankas SNORAS

DnB NORDSiauliu bankas

Danske bankas

Parex bankas

Nordea

Ukio bankasFinasta

Medicinos bankas

Handelsbanken

Average


Functionality


25/64

0 2040 60

80 10086

84

78

77

67

65

65

61

59

43

42

31

63

Swedbank

SEB bankas

Bankas SNORAS

DnB NORDSiauliu bankas

Danske bankas

Parex bankas

Nordea

Ukio bankasFinasta

Medicinos bankas

Handelsbanken

Average


Functionality


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Results of Functionality in Latvia

Functionality


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0 2040 60 80

100

SEB Banka

Swedbank

NORVIK BANKA

Latvijas Krajbanka

Nordea

DnB NORD Banka

GE Money Bank

Parex Banka

Latvijas Hipoteku un z. b.

PrivatBank

Latvijas Biznesa Banka

TRASTA komercbanka

SMP BankRegionala Investiciju Banka

Danske Bank

Latvijas Pasta Banka

LTB Bank

Svenska Handelsbanken

Average


Functionality


28/64

0 2040 60 80

100

84

80

79

71

65

6358

57

54

5350

4847

4644

4239

33

56

SEB Banka

Swedbank

NORVIK BANKA

Latvijas Krajbanka

Nordea

DnB NORD Banka

GE Money Bank

Parex Banka


PrivatBank


TRASTA komercbanka

SMP BankRegionala Investiciju Banka

Danske Bank


LTB Bank


Average


Functionality


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Results of Functionality in Estonia

Functionality


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0 2040 60 80

100

Sampo pank

Swedbank

SEB

NordeaKredidipank

DNB NORD Pank

MARFIN PANK

Tallina Aripank

Parex pankLHV

Handelsbanken Eesti

UniCredit Bank

Average


Functionality


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0 2040 60 80

100

77

70

70

63

56

44

43

42

41

37

36

29

51

Sampo pank

Swedbank

SEB

NordeaKredidipank

DNB NORD Pank

MARFIN PANK

Tallina Aripank

Parex pankLHV

Handelsbanken Eesti

UniCredit Bank

Average


Functionality


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Average Functionality Results 2010 vs 2009

Functionality

2009 2010 Change

62% 63% +1%

52% 56% +4%

61% 51% -10%


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methodology

customer service responsiveness

It measures how quickly and how effectivelybanks react to email questions of current

and potential customers.

12 emails are sent during 14 days to all banks

on the same time.

Replies are evaluated based on:

Timing

Accuracy Contacts

Politeness Writing style


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Results of Responsiveness in Lithuania

Responsiveness


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0 2040 60 80

100

Ukio bankas

Nordea

Danske bankas

HandelsbankenDnB NORD

Bankas SNORAS

Finasta

SEB bankas

Siauliu bankasSwedbank

Parex bankas

Medicinos bankas

Average


Responsiveness


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0 2040 60 80

100

91

76

69

64

63

58

55

52

52

49

46

25

63

Ukio bankas

Nordea

Danske bankas

HandelsbankenDnB NORD

Bankas SNORAS

Finasta

SEB bankas

Siauliu bankasSwedbank

Parex bankas

Medicinos bankas

Average


Responsiveness


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Results of Responsiveness in Latvia

Responsiveness


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0 2040 60 80

100

PrivatBank

Swedbank

NORVIK BANKA


TRASTA komercbanka

SEB BankaDnB NORD Banka

Danske Bank

Parex Banka

LTB Bank


GE Money Bank

Latvijas KrajbankaSMP Bank



Regionala Investiciju Banka

Nordea

Average


Responsiveness


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0 2040 60 80

100

89

88

86

86

86

8483

83

78

75

73

706562

61

6054

52

74

PrivatBank

Swedbank

NORVIK BANKA


TRASTA komercbanka

SEB BankaDnB NORD Banka

Danske Bank

Parex Banka

LTB Bank


GE Money Bank

Latvijas KrajbankaSMP Bank




Nordea

Average


Responsiveness


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Results of Responsiveness in Estonia

Responsiveness


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0 2040 60 80

100

Tallina Aripank

DNB NORD Pank

LHV

SwedbankNordea

UniCredit Bank

Sampo pank

SEB

MARFIN PANKParex pank

Handelsbanken Eesti

Kredidipank

Average


Responsiveness


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0 2040 60 80

100

89

86

85

84

81

77

73

70

68

68

67

65

76

Tallina Aripank

DNB NORD Pank

LHV

SwedbankNordea

UniCredit Bank

Sampo pank

SEB

MARFIN PANKParex pank

Handelsbanken Eesti

Kredidipank

Average


Responsiveness


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Average CSR Results 2010 vs 2009

2009 2010 Change

70% 58% -12%

50% 74% +24%

56% 76% +20%

Responsiveness


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methodology

innovation

It measures the if banks are actively presentin main popular social networks

If banks offer stand-alone apps for finance

management


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methodology

innovation

It measures the if banks are actively presentin main popular social networks

If banks offer stand-alone apps for finance

management

It measures if banks offering costumer

support using live chat features


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Results of Innovation in Lithuania

Innovation


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0 2040 60 80

100

Swedbank

SEB bankas

Bankas SNORAS

Siauliu bankas

Ukio bankas

Nordea

Danske bankas

Handelsbanken

DnB NORD

Finasta

Parex bankas

Medicinos bankas

Average


Innovation


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0 2040 60 80

100

31

8

8

8

5

Swedbank

SEB bankas

Bankas SNORAS

Siauliu bankas

Ukio bankas

Nordea

Danske bankas

Handelsbanken

DnB NORD

Finasta

Parex bankas

Medicinos bankas

Average


Innovation


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Results of Innovation in Latvia

Innovation


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0 2040 60 80

100

Swedbank

Nordea

PrivatBank

SEB Banka

NORVIK BANKA

Parex BankaSMP Bank


TRASTA komercbanka

DnB NORD Banka

Danske Bank

LTB Bank


GE Money Bank

Latvijas Krajbanka




Average


Innovation


51/64

0 2040 60 80

100

22

171717

8

88

5

Swedbank

Nordea

PrivatBank

SEB Banka

NORVIK BANKA

Parex BankaSMP Bank


TRASTA komercbanka

DnB NORD Banka

Danske Bank

LTB Bank


GE Money Bank

Latvijas Krajbanka




Average


Innovation


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Results of Innovation in Estonia

Innovation


53/64

0 2040 60 80

100

LHV

Swedbank

SEB

Handelsbanken Eesti

DNB NORD Pank

Nordea

Tallina Aripank

UniCredit Bank

Sampo pank

MARFIN PANK

Parex pank

Kredidipank

Average


Innovation


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0 2040 60 80

100

33

31

25

8

8

8

9

LHV

Swedbank

SEB

Handelsbanken Eesti

DNB NORD Pank

Nordea

Tallina Aripank

UniCredit Bank

Sampo pank

MARFIN PANK

Parex pank

Kredidipank

Average


Innovation


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Average Innovation Results 2010

Innovation

Fin. Tracking Tools Social media Online Support

6% 8% 0%

4% 10% 3%

6% 21% 2%


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OverallComposite

Ranking


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Composite Ranking in Lithuania 2009

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Composite Ranking in Lithuania 2010

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Composite Ranking in Latvia 2009

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Composite Ranking in Latvia 2010

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Composite Ranking in Estonia 2009

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Composite Ranking in Estonia 2010


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Trends and Recommendation

Trends Recommendation

Building trust for brand More Social Media presence

Saving and Investmenttools / Analytics

Easy money management and financial planningtools (mint.com, manofinansai.lt)

Mobile devicesiPhone/iPad, Blackberry, Android apps for e-

banking (Swedbank has iPhone app in Sweden)

Leveraging the mobile

penetration rate

More efforts on Mobile Banking, easy to use, fully

functional, trusted and integrated.

Collective problem

solving

Provide the space where clients can support each

other (getsatisfaction.com)

2010


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2010Baltic E-Banking Report

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Release Date: 15 October 2010
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Documents

2010 Baltic E Banking Report[1]