European eBanking technology strategies: Industry Report

European eBanking technology strategies

Product Type: Market Research Report
Published by: Datamonitor
Published: May 2005
Product Code: R313-8487

Description

Introduction
Recent primary research carried out by Datamonitor indicates that the Internet is re-emerging as a priority channel for technology investments in 2005. Coming off the back of the "dotcom gloom" of 2001-3, banks are entering an eBanking technology renewal cycle, to improve the functionality and usability of websites as well as levels of integration with other channels.

Scope
Contains data from interviews with key decision-makers in 100 European retail banks
Includes IT spending forecasts for 2008
Includes coverage of all the main Western European markets
Highlights
The Internet is becoming an increasingly effective revenue generation tool, although its exact role in distribution strategy will depend on the strategic focus of the bank. Adopting a scenario-based approach to eBanking service design will be crucial in the realization of strategic objectives.

External spend will expand at a CAGR of 9.5%, reflecting increased receptiveness to vendor applications and growing demand for the services of systems integrators and professional services firms as banks seek to achieve greater cross-channel process integration.

Reasons to Purchase
Size your addressable market to 2008
Understand the key drivers behind eBanking initiatives in Europe over the next few years
Understand the key success factors for technology

Table of Contents

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 3

Key findings 4

Market context 4

Competitive dynamics 4

Market opportunity 4

CHAPTER 2 MARKET CONTEXT 10

Introduction 10

Key findings 11

Banks’ key eBanking pain points 12

The changing role of the Internet in distribution strategy 13

Strategic focus will determine the nature of eBanking services 17

Critical success factors 19

Developing a more personalized, user-friendly service to enhance revenue generation 19

Banks need channel-independent processes to enable a seamless multichannel customer experience 22

Increased end-to-end process automation is crucial for driving efficiency and STP 23

Implementing functionality in alignment with business focus 24

Taking a proactive approach to fraud prevention 24

Key technology implications 25

CHAPTER 3 COMPETITIVE DYNAMICS 30

Introduction 30

Key findings 30

The buy versus build debate 30

Vendor market segmentation 32

Key dynamics 33

eBanking / channel applications 33

Niche application providers 34

Business transformation players set for important role 35

Challenges and success factors for eBanking application vendors 35

CHAPTER 4 MARKET OPPORTUNITY 38

Introduction 38

Key findings 38

Italy and the Nordics the fastest-growing markets as the UK slows 39

Buoyant growth in external spend, but internal spend will remain significant as banks seek component-based channel architectures 41

CHAPTER 5 APPENDIX 43

Definitions 43

Abbreviations 43

Future readings 44

SPP writing team 44

LIST OF TABLES

Table 1: European eBanking technology spending, 2004-2008, by country 41

Table 2: European eBanking technology spending, 2004-2008, by source 43

LIST OF FIGURES

Figure 1: eBanking is a top 3 investment priority for European banks in 2005 11

Figure 2: Touch correlates broadly with satisfaction 15

Figure 3: Comparative capabilities of retail banking distribution channels 16

Figure 4: European eBanking business models and strategic priorities 18

Figure 5: Designing a “scenario-based” approach to eBanking 21

Figure 6: Shorter processes result in higher completion rates 23

Figure 7: eBanking is the focus of channel investments for banks 25

Figure 8: Process-centric multichannel architecture 28

Figure 9: Summary of banks’ primary eBanking technology requirements 29

Figure 10: eBanking technology vendor “stack” featuring selected vendors 32

Figure 11: eBanking / multichannel solution development timeline 33

Figure 12: Convergence in the eBanking / multichannel application space 34

Figure 13: European eBanking technology spending, 2004-2008, by country 39

Figure 14: European eBanking technology spending, 2004-2008, by source 41

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