Giving Europeans an on-line push

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Giving Europeans an on-line push

“Customers around the world have adopted Internet banking at very different rates. To find out why they vary so much, McKinsey studied 65 leading banks in ten European countries.”

The McKinsey Quarterly, 2001 Number 2 On-line tactics

Policy relevance:

When trying to get Europeans online, policy makers and other EU Actors should be aware of what makes people go online: pull or push factors.

Main conclusions:

  • In bringing customers online “push” factors (the efforts that banks make to attract customers to online operations) are almost as important as “pull” factors (demand from internet-savvy customers for electronic services);
  • Most conversions of existing customers arise from their demand for online services: pull accounts for 60% of conversions;
  • Smaller banks convert existing customers and acquire new ones more actively, though the leverage effect of size is especially strong in winning new customers;
  • Brokerage is typically a driver for acquiring customers quickly and does help banks move current customers online more quickly;
  • Although the structure and range of the products offered online do have a strong bearing on the banks’ ability to acquire new customers, such offerings don’t appear to have a statistically significant role in converting more of the existing ones to internet banking;
  • Some banks are clearly being pulled online more than their peers because of demand from their customers;
  • Banks therefore have little choice but to pursue online customer conversion; doing so will enable the best to maintain or increase their lead and the laggards at least to stay in the game;
  • Though banks in internet-ready countries will have an easier time, banks everywhere have a chance to influence their customers and to improve their own performance.

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