Media Releases

Online Banking Channel in Italy Making Inroads in the Savings Market: Ken Research

Posted on 16 January 2017 by KenResearch Banking Financial Services and Insurance ,

Ken Research announced the recent report on Retail Banking Country Snapshot: Italy 2016,” which offers insights on  the retail banking sector in Italy focusing on the current account, savings, mortgage, and personal loans markets, further includes both market-level data and data from global Retail Banking Insight Survey. The report further offers shrewd investigation on consumer behaviour in Italy, how they take out and use their financial products, and also the ways in which it has evolved in recent years. Moreover, the report offers details about the providers who dominate the current account, savings, mortgage, and loan markets, and the factors that persuaded their customers to choose them. An individual can also withdraw information about the extent to which consumers are using online and mobile channels to research, take out, and use their financial products.

 

Macro Economic Factors

 

Paolo Gentiloni took over as the new prime minister after his centre-left Democratic Party colleague Matteo Renzi resigned in response to the humiliating rejection of his far-reaching constitutional reforms at a referendum in November 2016. The new prime minister's priorities were to shore up Italy's ailing banking sector, create jobs and push through electoral reform before the next election, in which the Democratic Party is expected to face a tough challenge from the populist Five State Movement.

The GDP of Italy in year 2015 was USD 1.821 trillion and the growth rate was 0.7% in the same year. The inflation rate was absolutely zero and unemployment rate fell down to 11.9 from 12.6 which indicate a positive outlook.

 

Economic Outlook

 

The latest monthly indicators suggest that the economy maintained a slow but broadly stagnant pace of growth in Q 4’2016 of previous year after it had accelerated slightly in Q3’2016, certainly on the back of stronger fixed investment, which offset a more negative contribution from the external sector. In the political arena, on 4 December, Italians voted against in the constitutional referendum, prompting Matteo Renzi to resign as prime minister. A lengthy political crisis was nonetheless averted lately as Paolo Gentilon of the Democratic Party, like Renzi was named novel prime minister and his government was voted in by both houses of parliament. However, the novel government faces an immediate challenge as the clock ticks towards a year-end deadline for Monte dei Paschi di Siena, Italy’s third largest bank by assets, to elevate EUR 5 billion in capital after the European Central Bank rejected a petition for more time.

 

Recent Trends

 

The main current account providers in Italy barring ING-has a negative NPS rating, with BNP Paribas and UniCredit the weakest performers. Consumer base in Italy are more concerned with the ethics and therefore expect honesty from the brands they possess or are associated with, not only from these brands or companies but also from the companies that have positioned themselves with good track records. 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 introduction stage, although a few providers are introducing mobile onboarding, and high smartphone ownership rates bode well for future adoption.

 

To know more on the coverage, tap on the link underneath:

https://www.kenresearch.com/banking-financial-services-and-insurance/banking/retail-banking-country-snapshot-italy/78622-93.html 

 

Related Links

https://www.kenresearch.com/banking-financial-services-and-insurance/banking/retail-banking-country-snapshot-malaysia-2016/70705-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/banking/retail-banking-country-snapshot-indonesia/73659-93.html 

 

Contact:

Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

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Malaysian Consumers embrace Ease Brought to Banking by Digital Platforms: Ken Research

Posted on 15 December 2016 by KenResearch Banking Financial Services and Insurance ,

Ken research announced its recent publication on Retail Banking Country Snapshot: Malaysia 2016,” which offers insight on retail banking sector in Malaysia, which is highly concentrated upon the current account, savings, mortgage and personal loans markets which includes both market-level data and information from global retail banking insight survey. Furthermore, the report offers an in-depth analysis of consumer approach towards the financial sector and how it has evolved over a period of time including who are dominating the market and what factors persuaded them to make such decisions. Likewise it includes the shrewd investigation of the extent of consumers using internet and mobile channels to do their research on financial products.

Driving exponential development in retail banking is turning to be challenging across Asian emerging markets (EMs), including China, Malaysia, Indonesia, Thailand and India. The slowdown in the pace of growth is brought by slowing GDP growth in countries such as Indonesia, Thailand and China, turning credit cycles in Thailand and Malaysia and continued volatility in currency and commodity markets.

Despite the relative slowdown, the absolute scale of the opportunity is anticipated to be very large. The growth will be fuelled by the extension of access to financial services to an additional 250 million households and the increasing need for financial services from another 90 million households as the transition from the mass market to the mass affluent segment.

Institutions that make the right move in four significant areas of opportunity across these markets will grow at a much faster pace than others, often by two to four times. For example, “winner” banks in Indonesia may be able to grow their risk-adjusted retail revenue by 10 percent per annum over the next five years while the “laggards” will fight to grow more than 2 to 3 percent per annum

Growth Opportunities

Adoption of digital channels, products and business models

We believe that digital-led / digital-only products and business models will see much greater proliferation across EMs over the next five years. Its pace and impact will be somewhat market-specific.

Banks that have been early investors in data infrastructure, big data analytics and internal agile management practices will be at a significant advantage when the digital segment starts driving banking revenue pools in “digital-ready” markets across Asia. China is already undergoing such a phase of transformation, with Malaysia, India and Indonesia to follow next.

 

Untapped opportunity in small- and medium-sized enterprises (SMEs)

SMEs drive financial growth in most EMs and represent a significant financial services opportunity however; getting SME banking right is often difficult, given organizational and operational challenges.

EM banks that get the SME segment right generate significant financial benefits with a typical return on equity upward of 20 percent and a well-balanced loan-to-deposit ratio of 80 to 120 percent.

Sustainable growth in retail credit

Retail credit is anticipated to remain a major component of retail banking revenue growth, contributing 20 to 30 percent of total growth across markets in emerging Asia; however, a number of these markets have started seeing deterioration in credit quality that often looks poised to get worse, given the negative macroeconomic outlook and alarmingly high debt-to-disposable income ratio in some markets such as China, Malaysia and Thailand.

Building next generation risk-management capabilities while pursuing growth initiatives will be a key to sustainable performance in retail credit.

 

Development of an affordable banking proposition

The affordable banking segment incorporates the unbanked population along with the section of the mass market that is presently underserved by banks. Serving this section has long been treated as a commercially unviable strategy and is often done for the sake of social good, but near-universal access to mobile phones, rapidly improving digital infrastructure, availability of new data sources and prudent regulatory actions are changing the dynamics of this segment.

We believe that a mobile-led banking proposition delivered via partnership with existing distribution channels (retail stores working as transaction points) and leveraging alternate data sources for managing risk can be a game changer in this segment. Non-bank payment-led models such as M-Pesa, WING, TrueMoney and Paytm have so far created big impact in this space than banks, but banks have now started focusing on this segment as their core customer segment.

 

To know more on the coverage, tap on the link underneath:

https://www.kenresearch.com/banking-financial-services-and-insurance/banking/retail-banking-country-snapshot-malaysia-2016/70705-93.html 

 

Related Reports

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/retail-banking-country-snapshot-singapore-2016/58931-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/banking/retail-banking-country-snapshot-france-2016/66046-93.html 

 

Contact:                                                                                                                                       

Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

...

Read more…