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Digital Banking Maturity 2020

How banks are responding to digital (r)evolution?

Global benchmarking study of 318 banks in 39 countries on 5 continents.

Digital Banking Maturity 2020 is the 4th edition of largest global benchmarking of digital retail banking channels, answering what leaders are doing to win in the digitalization race. It is providing a comprehensive outside-in ‘mystery shopper’ assessment of retail banks’ digital channels and furthering discussion about future developments.

Digital Banking Maturity is a global accelerator helping banks respond to change

Digital Banking Maturity is the biggest global digital banking study, providing a comprehensive outside-in ’mystery shopper’ assessment of retail banks’ digital channels and furthering discussion about future developments.

Key takeaways

Digital Banking Maturity identifies champions and leading practices worldwide.

 

Covering 318 banks from 39 countries, DBM analyses digital retail banking in 3 channels, based on an outside in ‘mystery shopper’ assessment of digital functionalities, customer needs research and UX evaluation.

Covid-19 has changed banking and fast-tracked development of digital channels.

 

60% of banks have closed or shortened opening hours of branches but many have also implemented new digital features, such as fully digital processes, e.g. account opening (34%), remote identification & verification (23%) and contactless payments (18%).

Digital champions outperform peers on the basis of cost/income and ROE.

 

Digital champions don’t only lead their peers in number of digital functionalities along the customer journey, those that are incumbents outperform other incumbents in their country on average on both C/I (-4.0 p.p.) and ROE (+1.9 p.p.).

Banks still need to close gaps in E2E digital sales processes to better serve online customers.

 

Digital champions are investing in E2E digital sales processes and have widened their lead on latecomers for key products, e.g. 51% vs 23% for current accounts, 85% vs 34% for credit cards, and 84% vs 30% for cash loans.

Challengers tend to be faster than incumbents to adopt new trends and innovations.

 

New functionalities typically gain traction faster with challenger banks than incumbents, e.g. bill split 27% vs 2%, virtual debit card 26% vs 2%, chatbots with advanced use cases 15% vs 4%, chatbots allowing transactionality 12% vs 2%.

Digital champions know UX is a key differentiator driving customer satisfaction.

 

65% of digital champions ranked in the top 10% for analysed UX scenarios. The largest gaps between champions and latecomers are in opening an account 71% vs 23%, buying an insurance product 44% vs 7% and beyond banking service 48% vs 11%.

 

About the study:

 

DBM analyses digital retail banking channels of 318 banks from 39 countries. In order to compare digital maturity between banks we assessed three components:

  1. Functionalities benchmarking.
    Analysis of 1108 digital functionalities through ‘mystery shopper’ approach on real retail current accounts in each bank.
    - Assessment of 6 customer journey steps
    - Analysis of digitalization of 13 core banking products
    - Functionalities library with world’s leading practices
  2. Customer needs research.
    Survey-based research (4.9k Customers surveyed) focused on identifying 26 most important banking activities and preferred channels (branch, internet, mobile).
    - Customer preferences between channels in terms of most common banking activities
  3. User Experience Study.
    Supplementing analysis of customers perception of user experience.
    - 19 UX scenarios reflecting 10 areas of customer activity form all of the stages of relationship with a bank
    - UEQ survey covering a comprehensive impression of UX of mobile apps

If you would be interested in a in-depth findings regarding your financial institution – please contact our experts (contact data available below).

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