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Analyst Opinions
Retail Banking Country Snapshot: Turkey 2016
Turkey has a growing financial services market, enlivened by the innovative approach traditional banks have taken. Ownership of key financial products is widespread, with consumers favoring local providers that have a good reputation. Fintech providers are widely known in the country, though the traditional banks have developed advanced online and mobile services. Usage of branches for more complex interactions endures, though usage of online and mobile services is one of the strongest in the region.
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Analyst Opinions
Retail Banking Country Snapshot: Italy 2016
The market for financial products in Italy is less concentrated than in other countries. With the exception of Intesa Sanpaolo and UniCredit, few providers have a significant market share. Across all products, the branch is still the key acquisition channel, although online is making inroads in the savings market. Mobile banking is still in its infancy, although a few providers are introducing mobile onboarding, and high smartphone ownership rates bode well for future adoption.
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Sector Analysis
Retail Banking Market Insights: Denmark
The current account market in Denmark is highly concentrated, with the top three providers accounting for 53%. Just 7% of Danish consumers have switched their current account in the last 12 months, which is well below the global average. These factors make it difficult for new entrants to make inroads in this space. Danish savers are cautious, with around three quarters putting money aside to protect themselves against unforeseen events. This caution is reflected in the strong preference for brands...
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Sector Analysis
Retail Banking Market Insights: New Zealand
The banking sector in New Zealand is concentrated, with the top three providers accounting for 67% of main current accounts. New Zealand consumers tend to choose providers because of an existing relationship. New Zealand savers are cautious, with over half saving to protect themselves against unforeseen events and over a third saving for retirement. New Zealand’s mortgage balances outstanding totaled NZ$0.2tn in 2014, up from NZ$0.16tn in 2008. Around a fifth of consumers in New Zealand have a personal loan....
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Analyst Opinions
Australian Advisors and their Clients
Independent financial advisors (IFAs) still rank as the leading outlet for Australians receiving advice with a 34% share of the market. The growing popularity of self-managed superannuation funds has supported the renewed growth in the number of Australians with ongoing financial advice. Growing affluence and an aging population have supported the growth of advisors’ client base. Older affluent men remain the largest demographic among advisors’ client bases, with all other demographics having lower penetration despite a greater willingness to seek...
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Sector Analysis
P2P Lending: Responding to Disruption
P2P lending platforms have a 400–425 basis point advantage over traditional banks in loan origination. Retention of customers who have used a P2P platform before is high, with 75% saying they would approach one again when seeking a loan. Fractional lending and alternative credit risk assessments allow platforms to reduce exposure to default and asses risk more accurately than banks. The domination of institutional investors does pose a risk to the sustainability of some P2P platforms.
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Sector Analysis
Retail Banking Country Snapshot: Singapore
Singapore has an advanced financial services market. Consumers are generally conservative in choosing a provider, with a bias towards those they perceive to offer financial stability and a longstanding reputation. Singaporean consumers prefer the branch for nearly all of their banking requirements. NPS scores are low across all four products compared with other markets in the region. Channel usage patterns indicate that Singaporean consumers are less engaged with their banks than consumers in other regional markets.
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Sector Analysis
Retail Banking Country Snapshot: UAE
UAE has a well-diversified and sound financial system that plays an important role in the economy. The retail banking sector is rapidly growing due in part to the country’s increasing expatriate population. Product ownership rates are high, particularly for current and savings accounts. Emirati consumers retain a traditional attitude towards provider choice, favoring banks with which they have a prior relationship. Product application is still largely conducted via branches, meaning there is considerable scope for providers to encourage greater use of digital...
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Sector Analysis
Retail Banking Market Insights: Norway
The banking sector in Norway is concentrated, with the top three providers accounting for 59% of main current accounts. Norwegian consumers tend to choose providers on the basis of reputational factors and an existing relationship. 11% consumers in Norway have switched their accounts in the last 12 months, which is the highest in the region. However, it is still below the global average. Norwegian savers are cautious, with around two-thirds saving to protect themselves against unforeseen events and over a...
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Analyst Opinions
UK IFAs, Investment Managers, & Platforms
The attractiveness of platforms is first and foremost driven by the investment fund range they offer. Another key consideration is investment fund returns. Beyond products and performance, low costs are important to advisors. Investment product providers are regularly reviewed by IFAs. 30% review their investment product providers quarterly and 45% do so annually. Platform sales account for a growing percentage of gross retail fund sales. 94% of advisors use platforms, with the majority relying on more than one. The three...
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