With retail banking currently undergoing a digital transformation, this year’s survey brought to light several interesting findings. The Digital Transformation in Retail Banking Survey launched by Deloitte revealed that the preferred channel of Luxembourg consumers leans strongly towards online platforms when it comes to account openings (84%) and cards (95%). Conversely, a large percentage remain offline when dealing with loans (approx. 75%) and investments (70%). The online global survey was completed by 17,200 customers across 18 countries, including approximately 200 customers from Luxembourg.

Use of digital channels and branch services

For customers with a primary account held in Luxembourg, the interest in both online and mobile platforms is significant, as 96% are using either online and/or mobile solutions in their day to day activities. For smaller domestic transactions, the survey shows that Luxembourg customers primarily use mobile apps and online banking, with 60% using their phone and 40% online. However, when reporting a lost or stolen card, 59% of Luxembourg customers predominantly use the contact center to block their bank card. Finally, 84% of Luxembourg customers almost exclusively use the bank branch for credit applications.

“In the world of retail banking, online and mobile banking channels have become as important, if not more important, than local branches and ATMs. Consumers rely more and more on their mobile devices to manage their daily transactions, as new features of mobile applications continuously appear to address customer’s concerns and queries in a timely manner. On the other hand, online banking platforms are not considered user-friendly and therefore the sector must focus on improving user experience to match the ease their customers are looking for” says Pascal Martino, Partner and Banking Leader at Deloitte Luxembourg.

When not using the online option, but visiting a branch, customers prefer services and measures that guarantee a good atmosphere and fast processing. According to the survey, 36% of respondents would be more likely to use a bank branch if the setting were more informal. 31% stated they would be more likely to use the bank branch if they were equipped with Digital self-service screens, with an option for a bank representative if needed. 27% would be more likely to use the bank branch if it offered a service to schedule a virtual video meeting and 12% would be likely to use the bank branch if it offered extended service hours through virtual remote services with a representative.

Switching of primary bank

Reasons given for changing banks are quite similar across the globe. When choosing a new bank, clients value a variety of components, from data security to a large number of product offerings such as low fees, more attractive loyalty programs and personalized advice/offers. From the above, Luxembourg respondents awarded the most importance to price (34%) and personal advice and offers (21%). However, in comparison to worldwide responses, Luxembourg did not single out proximity of branches as a main reason to change bank (only 4%).

The survey revealed that in the last 12 months, 20% of the Luxembourg respondents changed their main bank providers stating the abovementioned reasons for their move, with a particular interest in better pricing. More strikingly, an overwhelming 56% of respondents stated that they were likely to change their main bank provider in the next two years.

“These results demonstrate the volatility of the retail banking market and show that there is still work to done on the side of banks to ensure customer loyalty. We live in a highly competitive banking era, and as a result must be ready to embrace new opportunities presented to us, specifically in terms of digital transformation.” added Francois Bade, Director Strategy & Corporate Finance.

Learn more about the Digital Transformation in Retail Banking Survey results here: https://www2.deloitte.com/lu/digital-transformation-retail-banking