In its recent Digital Transformation in Retail Banking Survey, Deloitte found that 96% of respondents with a primary account in Luxembourg use either online or mobile banking solutions.
More than 17,000 respondents, including some 200 from Luxembourg, took part in this year’s online survey on Digital Transformation in Retail Banking, launched by Deloitte. Results from Luxembourg showed high interaction with online and mobile banking channels. However, respondents reported concerns regarding the lack of security when using mobile applications and stated that online banking platforms were not sufficiently user-friendly.
The Digital Transformation in Retail Banking Survey revealed that the preferred channel of Luxembourg consumers leaned strongly towards online platforms when it comes to account openings (84%) and cards (95%). Conversely, a large percentage remain offline when dealing with loans (approx. 75%) and investments (70%).
For customers with a primary account held in Luxembourg, the interest in both online and mobile platforms was significant, as 96% confirmed using either online and/or mobile solutions in their day to day activities. For smaller domestic transactions, the survey showed that Luxembourg customers primarily used mobile apps and online banking, with 60% using their phone and 40% online. However, when reporting a lost or stolen card, 59% of Luxembourg customers predominantly use the contact centre to block their bank card. Finally, 84% of Luxembourg customers admitted to almost exclusively using the bank branch for credit applications.
When not using the online option, but visiting a branch, customers preferred services and measures that guarantee a good atmosphere and fast processing. According to the survey, 36% of respondents would be more likely to use a bank branch if the setting were more informal. 31% stated they would be more likely to use the bank branch if they were equipped with Digital self-service screens, with an option for a bank representative if needed. A further 27% would be more likely to use the bank branch if it offered a service to schedule a virtual video meeting and 12% would be likely to use the bank branch if it offered extended service hours through virtual remote services with a representative.
Reasons given for changing banks were quite similar worldwide. When choosing a new bank, clients appeared to value a variety of components, from data security to a large number of product offerings such as low fees, more attractive loyalty programmes and personalised advice/offers. From the above, Luxembourg respondents awarded the most importance to price (34%) and personal advice and offers (21%). However, in comparison to worldwide responses, Luxembourg did not single out proximity of branches as a main reason to change bank (only 4%).
Finally, the survey revealed that in the last 12 months, 20% of the Luxembourg respondents changed their main bank providers stating the aforementioned reasons for their move, with a particular interest in better pricing. More strikingly, 56% of respondents stated that they were likely to change their main bank provider in the next two years.
“These results demonstrate the volatility of the retail banking market and show that there is still work to done on the side of banks to ensure customer loyalty. We live in a highly competitive banking era, and as a result must be ready to embrace new opportunities presented to us, specifically in terms of digital transformation,” stated Francois Bade, Director Strategy & Corporate Finance at Deloitte.