Page 31 - ASSET MANAGER 11 (EN)

ASSET MANAGER • NO. 11/2019 DIGITIZATION • 31
7 OUT OF 10 GERMAN CITIZENS RELY ON ONLINE BANKING
16 to 29 years 30 to 49 years 50 to 64 years
64 years and older
that recognize these changes and adjust their offerings can now gain a competitive advantage," says Berg.
The most important thing for Germans is the cost of se- lecting their bank. The vast majority of them pay attention to the amount of the account maintenance fee (95 %), the number of free-of-charge ATMs (95%) and the amount of the bank's deposit insurance (94 %). Two-thirds (69 %) consider free access to cash abroad.
Loyalty to the bank is decreasing – every third person could switch to digital companies
For banks and savings banks, this development means that competition is likely to intensify – not least because loyalty to one's home bank is declining. A year ago, just one in three (34%) had changed their main current account; this has now risen to 41 %. More than half of them (57 %) even changed their account three or more times (2018: 45%). Even pure online banks are becoming increasingly inter- esting for customers. Today, every seventh German citizen (14%) says that their main account is already at a purely online bank (2018: 9 %). And around every eighth (13 %) has planned this change for the next twelve months (2018: 8 %), and another 19 % (2018: 19 %) can imagine this for the future. However, almost one in two (47%) complains that German financial institutions are far behind in their dig- ital offerings when compared internationally. Around one in three (29%) can imagine opening an account not with a bank, but with a digital company like Google, Apple or Amazon if this were to be offered.
An increasing number of German citizens see personal advantages through the digitization of the financial indus-
try. For example, 31 % (2018: 27 %) say that digitization is making banking easier and cheaper. And 41% (2018: 33%) are convinced that digital technologies can help them optimize their own finances. One in five (21 %) would wish that they would receive offers, such as the analysis of account changes, to highlight opportunities to save. That's almost twice as many as a year ago (12%). "The EU Payment Services Directive PSD2 has ensured that the customer, and not the bank, has bank account infor- mation and account activity. Growing interest in digital information and advisory services is a huge opportunity, also for startups," said Berg.
15 million no longer visit any bank branches
The classic bank branch is having a hard time. Around one in three online banking users (31%) states that they only conduct their banking business online and do not even visit a branch. That means 15 million Germans over the age of 16 never go to a bank branch. Every second online banking user (54%) only occasionally goes to a branch and mainly uses online offerings. A large majority (86%) expect the number of bank branches to decline sharply over the next ten years. One in two (48%) even expects that there will be no branch banks in 20 years' time. "Practically all banking applications and financial advice can be done just as well today, if not better on- line," says Berg. "Online banking does not mean that the customer has to give up personal advice. The cus- tomer no longer must go to a branch office during fixed opening hours; instead, they are able to get advising, at home or wherever they are, online, by phone or by video."
Source: Bitkom Research