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Analyst Opinions
Retail Banking Country Snapshot: Sweden 2016
Sweden has a competitive market for most financial products, with only Swedbank maintaining a dominant position in the provision of current accounts, savings accounts, and mortgages. Overall, consumers are cautious in their choice of provider, favoring those with strong reputations and nearby branches. However, comparisons between life stage segments differ significantly. Young Swedish consumers are much more inclined to act on recommendations than older consumers. Swedish consumers demonstrate higher price sensitivity relative to other markets. Digital self-service channels are the...
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Sector Analysis
Retail Banking Country Snapshot: Mexico 2016
While the market for current accounts and savings in Mexico is largely controlled by the four largest commercial banks, state-backed lenders dominate the mortgage market. Consumers place a lot of emphasis on ethical values, and this attribute is an important driver of choice across all key products. Branches remain vitally important for research, acquisition, and ongoing interactions, with online rarely being enabled for on boarding purposes.
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Analyst Opinions
Retail Banking Country Snapshot: US 2016
The US is a very competitive market for all financial products. Product ownership rates are high, particularly for current accounts and savings accounts. Both younger and older age groups use branches often, meaning there is considerable scope for providers to encourage greater use of digital channels. As the market for financial services is fragmented, US consumers tend to favor local brands with a reputation for financial stability. Regulatory activities are focused on strengthening the banking sector.
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Analyst Opinions
Retail Banking Country Snapshot: France 2016
The markets for mortgages and personal loans are largely dominated by a single provider (Crédit Agricole for mortgages, LCL for loans). Across all main products branches remain the key channel for acquiring new customers, with many providers not offering digital onboarding. Customers choose providers mainly on the basis of reputation, existing relationships, and rate. Only a minority of consumers either use, or intend to use, fintech providers, with younger consumers proving the most receptive.
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Analyst Opinions
UK Mortgage Market 2016: Forecasts and Future Opportunities
2016 has been a good year for the market, with gross lending expected to be 12% higher than in 2015. However, market conditions over the next few years are predicted to dampen prospects for future growth. On the supply side, legislative changes in the buy-to-let sector, namely higher rates of stamp duty and more stringent underwriting requirements, will act as a drag on future growth in what has been the standout sector in the years since the financial crisis. On...
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Analyst Opinions
Retail Banking Country Snapshot: UAE 2016
The UAE is overbanked with around 49 players, making it a fragmented and highly competitive market. Penetration is high and consumers are well informed and sophisticated, but the large number of expats in the UAE (over 90% of the population) creates unique requirements. Reputation is key, and customers favor established providers and traditional structures. Although online channels are gaining ground, awareness of fintech and peer to peer (P2P) providers remains low, and partnerships with existing banks are the best way...
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Analyst Opinions
UK Consumer Credit 2016: Forecasts and Future Opportunities
Consumer credit lending in 2016 will rise by 7%, but growth will slow over the forecast period, with balances outstanding reaching £292.5bn in 2020. Consumer confidence will maintain current demand, despite the uncertainty caused by the UK’s vote to leave the EU in June 2016. Strong competition is increasing the availability of credit but also weakening credit scoring criteria; consequently, there are signs that credit quality is deteriorating. Accommodating monetary policy should mitigate increases in the cost of credit due...
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Analyst Opinions
Retail Banking Country Snapshot: Brazil 2016
The Brazilian banking sector is highly consolidated, with a handful of large banks controlling a significant market share. Product ownership rates are high, particularly for current and savings accounts. Both younger and older age groups use branches often. Internet penetration in Brazil is low, and hence providers need to maintain a multi-channel approach or focus on specific geographical areas in the country. Consumers are generally conservative in their choice of provider, with a bias towards those with which they have...
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Analyst Opinions
Retail Banking Country Snapshot: Denmark 2016
Danske Bank and Nordea are the leading providers in the current account and savings account markets, with Nykredit dominating the provision of mortgages. Although branches remain the most important channel for acquisition, online – and increasingly mobile – are the main channels for ongoing interaction for both complex and routine tasks. Only a minority of consumers have used fintech providers to date, and peer to peer (P2P) lending has yet to make a mark, with providers in this sector primarily...
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Analyst Opinions
Retail Banking Country Snapshot: Indonesia 2016
Indonesia has a sizable segment that resembles a development stage similar to markets such as Malaysia. Consumers within this segment are very much like those in developed markets, whereby they embrace the convenience brought to banking by digital platforms and are sensitive about price. On the other hand, a significant proportion of the adult population still do not have a bank account. This highlights the massive opportunities that lie ahead in the Indonesian retail banking sector.
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