THE IMPACT OF NEOBANKS SO FAR
Reg van Steen
Emerce Financials 26 November 2019
6
Spain India China France Netherlands Germany US UK Brazil Singapore PENETRATION OF NEOBANKS
Proportion of consumers banking with a neobank by cou
15 Proportion of consumers banking with a neobank by cou
16 Proportion of consumers banking with a neobank by cou
17
Active user
Open account
Download app
19 BANK APP USAGE
Apparently 14% of neobank clients never use any app
Huge variation: US 25%; Brazil 90%
20 NEOBANK VS TRADITIONAL BANK APP USE (OUT OF THE PAST 10 TIMES)
NEOBANK APP USERS USE THAT APP 4 OUT OF 10 TIMES 22 23 NEOBANKS TRADITIONAL BANKS
Brazil, Other Brazil, Other China markets China markets and India studied and India studied
Customers‘ completely like’ 57% 28% 54% 47%
Customers‘ completely trust’ 53% *19% 58% 47%
24 NEOBANKS TRADITIONAL BANKS
Brazil, Other Brazil, Other China markets China markets and India studied and India studied
Customers‘ completely like’ 57% 28% 54% 47%
Customers‘ completely trust’ 53% *19% 58% 47%
25 NEOBANKS TRADITIONAL BANKS
Brazil, Other Brazil, Other China markets China markets and India studied and India studied
Customers‘ completely like’ 57% 28% 54% 47%
Customers‘ completely trust’ 53% *19% 58% 47%
26 NEOBANKS TRADITIONAL BANKS
Brazil, Other Brazil, Other China markets China markets and India studied and India studied
Customers‘ completely like’ 57% 28% 54% 47%
Customers‘ completely trust’ 53% *19% 58% 47%
27 Neobanks UK
Actual records of account switching levels remain stable
Current Account Switch Service Data
Switches in 12 month period
apr 18-mar 19 apr 17- mar 18
apr 16-mar 17
0 200.000 400.000 600.000 800.000 1.000.000 1.200.000
Monzo impressions Average weekly WOM impressions │Rolling 52 weeks │Financial Services
Financial Services │Rolling 52 weeks And not surprisingly, the conversation is driven by 73% younger people…
21%
3%
18-34 35-54 55-69 34
Yet in relative terms, Monzo still has a very low profile versus other banks in the UK
Share of Search volume 16%
14% 14% 14%
10%
7% 6% 4% 3% 3% 3% 3% 0,3% 0,1% Switching data don’t reflect the growth of challenger banks Top 5 banks for net switching in Q2 2019 – Current Account Switch Service Data
38.788
26.043
15.461
7.292 5.233
Nationwide HSBC Natwest Monzo Starling
Source : Bacs data from pay.uk The account holder profile of 2nd generation challenger banks is massively different
1st generation challenger banks 2nd generation challenger banks
Male 45% Male 63% Female 55% Female 37%
16-24 12% 16-24 24% 25-34 17% 25-34 47% 35-44 13% 35-44 24% 45-54 17% 45-54 5% 55-64 17% 55-64 65+ 24% 65+
Source : Kantar omnibus July 2019 Top 5 reasons for taking out an additional account
Total 2nd generation challenger customers
Base 343 68
1 To have an account with a bank which 18% 30% has a convenient branch I can go to To have an account for my ‘spending 2 23% 29% money’
3 To have a specific account that is just for 24% 25% paying bills
4 To have an account for big ticket items 21% 24% such as holidays
5 I like to know that my money is with more 24% 24% than one bank
Source : Kantar omnibus July 2019 39 Revolutie
40 Neobanks groeien meest in ‘underbanked’ markets onderscheidend = penetratie én activatie
41 Neobanks ook voor jongeren secundaire bank
Investeerders hebben lange adem nodig
42 ‘Traditionele’ banken zijn niet zo traditioneel
Anders was er veel meer churn
43 ‘Traditionele’ banken mogen niet achterover leunen
Blijven investeren in CX én branding!
44 Reg van Steen Senior Client Director – Financial Services [email protected] +31 (0) 630 830 079
Download het rapport https://www2.kantar.com/future-finance- neobanks-2019