November 15, 2013
35% of traditional banks' market share up for grabs by 2020 in North America
NORTH AMERICA --35% of banks' market share in North America could be up for grabs by 2020, as traditional branch banking gives way to digital banking and as new competition emerges.
According to Accenture`s research, in 2020 an estimated 15% of traditional banks' revenues could shift to online-only players, including branchless banks and new technology entrants. Another 20% could shift to retail-driven players with a mass-market focus - under partnerships between big-box retailers and banks, and potentially independent ventures by retailers.
Based on customer survey-data, the research cites a 50% increase in mobile banking activity over the past year; double- and triple-digit growth in online sales of traditional banking products (amidst declines in branch sales) and a strong trend of customers looking outside their primary banks for new products. It also points to new branch formats to help banks manage the trends with higher efficiencies and retention.
According to the survey, online sales of key banking products showed double-digit growth year-over-year, while sales of the same products via branches declined.
The same source indicates that recent promotions of services like mobile check-deposit by major US banks are driving rapid mass market adoption. Use of mobile banking has increased 50% since 2012 and almost one-third of US consumers (32%) now perform mobile banking activities at least once a month.
Over the past year, mobile banking almost displaced ATMs as the most important area customers believe their banks should be investing in and developing (mobile banking 20% vs. ATMs 21%). Meanwhile, online banking was cited as the number one area in which banks should be investing (cited by 43%), overshadowing branches (38%).