2010

Baltic E-Banking Report

Results of 8th annual research study
Presented at Baltic Economic Forum 2010 23rd September 2010, Riga, Latvia

Session: The inuence of the global nancial crisis on the banking industry in the Baltic States: lessons learned and road ahead.

baltic market technology trends mobile internet innovation tools

Baltic Market Outlook

Financial Crisis GDP drop - IMF bailouts Decrease on Real Estate prices Wages of public employees cut Unemployment Small indicators of economic growth Technology acceleration Mobile penetration

Market transformation during the crisis

The banks that will win the race to protability will be those that recognize their customer relationships have changed for better

According to Accenture research in 2010:

59% of banks reported decreased customer loyalty since the nancial crisis 63% say their customers are more price sensitive 63% say their customers are shopping around and more frequently
Source: http://newsroom.accenture.com/article_display.cfm?article_id=5035

Market transformation during the crisis More than 75% of users dont realize that their bank has mobile banking. Of those who are aware, half use the service. GO ONLINE / GO MOBILE

Source: FORBES

Market transformation during the crisis

87% of online banking users access their banks website more than once a week

87%
Source: Forbes 2010 ForeSee ONline Financial Services Study

Market transformation during the crisis

29% havent enrolled in online bill pay because they are worried about security

29%
Source: ComScore State of Online Banking 2010

Market transformation during the crisis How do you drive through crisis
The only good way to gain customer satisfaction and reduce costs is to build convenient tools which will make users independent decision and exible without visiting the branches by automating most of the stuff online

Customers Reduce visit to branches Reduce calling to call centers Generate more transactions Have more privacy over operations Be more aware of money

Banks Realize reduction of costs Save money in call centers Reduce cost of services Clients feel more secure Marketing savings products

2010

Baltic E-Banking Report

independent
research study

channels

of retail banks electronic communication

which are

Public Website Internet Banking System Mobile Social Media

countries
Lithuania Latvia Estonia

conducted in

since 2003

banks covered

+3 this year

42

structured into
Functionality Convenience

Clarity

Customer Service Responsiveness

Mobile Banking

Innovation

6 categories 30 sub-categories 550

individual criteria

innovation
new criteria

Innovation Financial Tracking Tools Social Media Usage Live Online Support

Why Innovation is important

22%
Source: Mintel

57% use social media networks only to connect with friends and family.

think that social media sites help them make good purchase decision

highlight results

E-Banking Report 2010

functionality
criteria

methodology
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 5. Payment options 9. Security measures 13. Payment cards 2. Login 6. Deposits 10. Languages 14. Insurance 3. Transactions 7. Loans 11. Help system 15. Other services 4. Account information 8. Leasing 12. Investment

functionality

Results of Functionality in Lithuania

Functionality

Results of Functionality in Lithuania

60 80 100

0 Swedbank SEB bankas Bankas SNORAS DnB NORD Siauliu bankas Danske bankas Parex bankas Nordea Ukio bankas Finasta Medicinos bankas Handelsbanken Average

20

40

Functionality

Results of Functionality in Lithuania

60 80 86 84 78 77 67 65 65 61 59 43 42 31 63 100

0 Swedbank SEB bankas Bankas SNORAS DnB NORD Siauliu bankas Danske bankas Parex bankas Nordea Ukio bankas Finasta Medicinos bankas Handelsbanken Average

20

40

Functionality

Results of Functionality in Latvia

Functionality

Results of Functionality in Latvia

40 60 80 100

0
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 Bank Regionala Investiciju Banka Danske Bank Latvijas Pasta Banka LTB Bank Svenska Handelsbanken Average

20

Functionality

Results of Functionality in Latvia

40 60 80 80 79 71 65 63 58 57 54 53 50 48 47 46 44 42 39 56 100 84

0
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 Bank Regionala Investiciju Banka Danske Bank Latvijas Pasta Banka LTB Bank Svenska Handelsbanken Average

20

Functionality

33

Results of Functionality in Estonia

Functionality

Results of Functionality in Estonia

40 60 80 100

0
Sampo pank Swedbank SEB Nordea Kredidipank DNB NORD Pank MARFIN PANK Tallina Aripank Parex pank LHV Handelsbanken Eesti UniCredit Bank Average

20

Functionality

Results of Functionality in Estonia

40 60
70 70 63 56 44 43 42 41 37 36 29 51

0
Sampo pank Swedbank SEB Nordea Kredidipank DNB NORD Pank MARFIN PANK Tallina Aripank Parex pank LHV Handelsbanken Eesti UniCredit Bank Average

20

80
77

100

Functionality

Average Functionality Results 2010 vs 2009 2009 62% 52% 61% 2010 63% 56% 51% Change +1% +4% -10%

Functionality

methodology
It measures how quickly and how effectively banks 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 Politeness Contacts Writing style

customer service responsiveness

Results of Responsiveness in Lithuania

Responsiveness

Results of Responsiveness in Lithuania

60 80 100

0 Ukio bankas Nordea Danske bankas Handelsbanken DnB NORD Bankas SNORAS Finasta SEB bankas Siauliu bankas Swedbank Parex bankas Medicinos bankas Average

20

40

Responsiveness

Results of Responsiveness in Lithuania

60 76 69 64 63 58 55 52 52 49 46 25 63 80 100 91

0 Ukio bankas Nordea Danske bankas Handelsbanken DnB NORD Bankas SNORAS Finasta SEB bankas Siauliu bankas Swedbank Parex bankas Medicinos bankas Average

20

40

Responsiveness

Results of Responsiveness in Latvia

Responsiveness

Results of Responsiveness in Latvia

40 60 80 100

0
PrivatBank Swedbank NORVIK BANKA Latvijas Hipoteku un z. b. TRASTA komercbanka SEB Banka DnB NORD Banka Danske Bank Parex Banka LTB Bank Latvijas Biznesa Banka GE Money Bank Latvijas Krajbanka SMP Bank Svenska Handelsbanken Latvijas Pasta Banka Regionala Investiciju Banka Nordea Average

20

Responsiveness

Results of Responsiveness in Latvia

40 60 80 100 89 88 86 86 86 84 83 83

0
PrivatBank Swedbank NORVIK BANKA Latvijas Hipoteku un z. b. TRASTA komercbanka SEB Banka DnB NORD Banka Danske Bank Parex Banka LTB Bank Latvijas Biznesa Banka GE Money Bank Latvijas Krajbanka SMP Bank Svenska Handelsbanken Latvijas Pasta Banka Regionala Investiciju Banka Nordea Average

20

54 52

65 62 61 60

78 75 73 70

Responsiveness

74

Results of Responsiveness in Estonia

Responsiveness

Results of Responsiveness in Estonia

40 60 80 100

0
Tallina Aripank DNB NORD Pank LHV Swedbank Nordea UniCredit Bank Sampo pank SEB MARFIN PANK Parex pank Handelsbanken Eesti Kredidipank Average

20

Responsiveness

Results of Responsiveness in Estonia

40 60 80
86 85 84 81 77 73 70 68 68 67 65 76

100
89

0
Tallina Aripank DNB NORD Pank LHV Swedbank Nordea UniCredit Bank Sampo pank SEB MARFIN PANK Parex pank Handelsbanken Eesti Kredidipank Average

20

Responsiveness

Average CSR Results 2010 vs 2009 2009 70% 50% 56% 2010 58% 74% 76% Change -12% +24% +20%

Responsiveness

methodology
It measures the if banks are actively present in main popular social networks If banks offer stand-alone apps for nance management

innovation

methodology
It measures the if banks are actively present in main popular social networks If banks offer stand-alone apps for nance management It measures if banks offering costumer support using live chat features

innovation

Results of Innovation in Lithuania

Innovation

Results of Innovation in Lithuania

60 80 100

0 Swedbank SEB bankas Bankas SNORAS Siauliu bankas Ukio bankas Nordea Danske bankas Handelsbanken DnB NORD Finasta Parex bankas Medicinos bankas Average

20

40

Innovation

Results of Innovation in Lithuania

60 80 100

0 Swedbank SEB bankas Bankas SNORAS Siauliu bankas Ukio bankas Nordea Danske bankas Handelsbanken DnB NORD Finasta Parex bankas Medicinos bankas Average 5 8 8 8

20 31

40

Innovation

Results of Innovation in Latvia

Innovation

Results of Innovation in Latvia

40 60 80 100

0
Swedbank Nordea PrivatBank SEB Banka NORVIK BANKA Parex Banka SMP Bank Latvijas Hipoteku un z. b. TRASTA komercbanka DnB NORD Banka Danske Bank LTB Bank Latvijas Biznesa Banka GE Money Bank Latvijas Krajbanka Svenska Handelsbanken Latvijas Pasta Banka Regionala Investiciju Banka Average

20

Innovation

Results of Innovation in Latvia

40 60 80 100

0
Swedbank Nordea PrivatBank SEB Banka NORVIK BANKA Parex Banka SMP Bank Latvijas Hipoteku un z. b. TRASTA komercbanka DnB NORD Banka Danske Bank LTB Bank Latvijas Biznesa Banka GE Money Bank Latvijas Krajbanka Svenska Handelsbanken Latvijas Pasta Banka Regionala Investiciju Banka Average

8 8 8

17 17 17

20 22

Innovation
5

Results of Innovation in Estonia

Innovation

Results of Innovation in Estonia

40 60 80 100

0
LHV Swedbank SEB Handelsbanken Eesti DNB NORD Pank Nordea Tallina Aripank UniCredit Bank Sampo pank MARFIN PANK Parex pank Kredidipank Average

20

Innovation

Results of Innovation in Estonia

40
33 31 25 8 8 8

0
LHV Swedbank SEB Handelsbanken Eesti DNB NORD Pank Nordea Tallina Aripank UniCredit Bank Sampo pank MARFIN PANK Parex pank Kredidipank Average

20

60

80

100

Innovation
9

Average Innovation Results 2010

Fin. Tracking Tools

Social media

Online Support

6% 4% 6%

8% 10% 21%

0% 3% 2% Innovation

Overall Composite Ranking

Composite Ranking in Lithuania 2009

$!!"# ,!"# +!"# &55+&35/'7)'#")31/#'5!) *!"# )!"# (!"# '!"# 2#$/3/'*!) &!"# %!"# $!"# !"# !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# +#5&/'/'7)#./!5/'7)31/#'5!) !"#$%&'() !'*+&!) 6&'$#1!%&'(#') 4/'&!5&) !#%) $&'!(#) -&+#.) 0(/*)) !/&01/0) '*+$#&) $,%)'*+$)

Composite Ranking in Lithuania 2010

$!!"# ,!"# +!"# &55+&35/'7)'#")31/#'5!) *!"# )!"# (!"# '!"# &!"# %!"# $!"# !"# !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# +#5&/'/'7)#./!5/'7)31/#'5!) 6&'$#1!%&'(#') 4/'&!5&) !/&01/0) !'*+&!) !"#$%&'() !#%) '*+$#&) $,%)'*+$)

$&'!(#) -&+#.) 0(/*))

2#$/3/'*!)

Composite Ranking in Latvia 2009

$!!"#

,!"# 23"4.,&/# +!"# ,--),9-*&!#&"3#90*"&-2# &%)+*/# *!"# 4&.#&%)4# /),5.,&/,# .*6&"2,#2".# )"!*%&,01# (,)"7# ()*+,-.,&/#

)!"#

(!"#

&%)4",# 4,&2/"# !"#$%&"'# 2+"&2/,# 2$(#

'!"#

0-.#

.,0-*/1$2#

&!"#

+"8#

%!"#

$!"#

!"# !"# $!"# %!"# &!"# '!"# (!"# )"-,*&*&!#"7*2-*&!#90*"&-2# )!"# *!"# +!"# ,!"# $!!"#

Composite Ranking in Latvia 2010

$!!"#

,!"#

+!"# *44(*84)&!#&"5#8+)"&4-# &%(0).# *!"# 4(*-4*# )!"# 7)2%4".*# ,&/##&%(,#/*&.*# &%(,"*# !"#$%&"'# -"/#

-5",/*&.#

2*("3# .(*1/*&.*# 2()0*4#

(!"#

2*-4*#/*&.*# /)6&"-*#/*&.*# ("!)%&*+*# -0"&-.*# ,*&-."# +4/# -$2#

'!"#

&!"#

%!"#

$!"#

!"# !"# $!"# %!"# &!"# '!"# (!"# ("4*)&)&!#"3)-4)&!#8+)"&4-# )!"# *!"# +!"# ,!"# $!!"#

Composite Ranking in Estonia 2009

$!!"# ,!"# +!"# '44"'54%(6)(#+)53%#(4*) *!"# )!"# (!"# '!"# &!"# %!"# $!"# !"# !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# "#4'%(%(6)#-%*4%(6)53%#(4*) $0,)(/"$) .'"1%() '"%&'(!) 2'($#3*,'(!#()

*+#$,'(!) !"#$%%$%&'(!) *#,) &'"#-) *'.&/)

(/"$#')

Composite Ranking in Estonia 2010

Trends and Recommendation Trends

Building trust for brand Saving and Investment tools / Analytics Mobile devices Leveraging the mobile penetration rate Collective problem solving

Recommendation
More Social Media presence Easy money management and nancial planning tools (mint.com, manonansai.lt) iPhone/iPad, Blackberry, Android apps for ebanking (Swedbank has iPhone app in Sweden) More efforts on Mobile Banking, easy to use, fully functional, trusted and integrated. Provide the space where clients can support each other (getsatisfaction.com)

2010

Baltic E-Banking Report

Release Date: 15 October 2010

pre-order now full report!

www.metasite.net/report