Banking app is more important for customers than branch network, brand or advice at the counter. Bad marks for the quality of advice and online insurance contracts. These are the results of a representative survey by the Association of the German Information and Telecommunications Industry BITKOM.
Classic online banking is becoming smartphone banking
For the first time, two thirds (67 percent) of online banking users are using their cell phones. A year ago it was 64 percent, three years ago it was only 52 percent. For the first time, half of the people aged 65 and over who do online banking also use their smartphone. A year ago it was just 33 percent. Overall, 78 percent of Germans aged 16 and over do all or part of their banking online; in the pandemic year 2021 it was 80 percent, but in 2020 it was only 73 percent. These are results from a representative survey of 1,004 people in Germany aged 16 and over.
“Corona has given online banking a big boost. Those who used online banking for the first time during the corona pandemic usually remain loyal to it even after the lockdown and corona restrictions end,” says Bitkom President Achim Berg.
Smartphone banking more popular among older users
32 percent of those aged 65 and over use online banking, up from 39 percent in 2021 - but just 22 percent in 2020. Among 50 to 64 year olds there was also a slight decline from 92 to 84 percent from 2021 to 2022 (2020: 87 percent). In contrast, 97 percent of 16 to 29 year olds and 30 to 49 year olds currently do their banking transactions digitally.

Online banking: especially account balances, transfers, standing orders
Simple applications dominate online banking. 92 percent check their account balance, 90 percent make transfers and 88 percent manage their standing orders. Offers beyond this are accepted significantly less often. Only 43 percent use banking services digitally, such as ordering checking or credit cards or foreign cash for vacation, but 24 percent can imagine this in the future. A third (33 percent) manage investment and pension products online, and 26 percent believe this will be possible in the future. Just 28 percent seek individual advice on financial matters online and 30 percent are thinking about this for the future. And only 15 percent have already taken out loans through online banking, but 21 percent would consider doing so in the future.
Berg: “Online banking is more than just a digital transfer. Customers want to be able to carry out all their usual banking services online, whenever they want and wherever they want. What is often still missing are the corresponding, easy-to-use offers.”
Online banking puts pressure on traditional branches
The proportion of those who only use online banking and no longer go to a branch has continued to rise. 4 out of 10 (41 percent) only use online banking, in 2021 it was 38 percent and in 2018 it was only 29 percent. At the same time, 46 percent predominantly use online banking and occasionally go to a bank branch (2020: 53 percent, 2018: 51 percent). 12 percent say that they mostly visit a branch and only occasionally use online banking (2020: 7 percent, 2018: 17 percent).
45 percent of Germans say they wouldn't miss anything if there were no more bank branches. “The traditional branch of a bank or savings bank is coming under increasing pressure,” says Berg. One in four (26 percent) has already moved their main account to a purely online bank without a branch network. Another 19 percent have firmly planned this for the next twelve months, 22 percent can basically imagine it. Only 31 percent rule out such a change. And 4 out of 10 respondents (40 percent) would consider opening a checking account with a digital company such as Amazon, Apple or Google if such an offer were available.
“Traditional banks should critically examine whether their digital offerings and business models are competitive in view of the fundamentally changed expectations of their customers,” says Berg. “Collaborations with startups from the fintech scene can make a lot of sense, as can collaborations with established digital companies.”
When choosing a bank, the costs – and digital offers – are decisive
Digital offers play an important role when choosing your house bank. For three quarters (74 percent), a user-friendly online banking app is very important or somewhat important, 69 percent pay attention to a wide range of online banking offers and 54 percent pay attention to the possibility of using mobile payment methods such as Google Pay or Apple To be able to use Pay. These digital factors are therefore more important than many bank branches that can be reached quickly (53 percent), a well-known brand or personal advice at the counter (48 percent each) and customer loyalty programs such as points or rewards (42 percent). In general, the most important factors when choosing a bank are the level of fees (95 percent), the level of deposit protection (93 percent) and the number of free-to-use ATMs (91 percent). The bank's commitment to sustainability (82 percent), the bank's country of origin (79 percent) and fee-free access to cash abroad (79 percent) are also important to 8 out of 10.
“Digital offers are no longer just a decisive factor for the very young target group when choosing a house bank. All banks are well advised to put apps & Co. at the center of their offering,” says Berg.
Digital advice is becoming increasingly important
Digital financial advice also plays a larger role. A fifth (20 percent, 2021: 16 percent) have now received individual advice from the bank or a financial service provider via email. A tenth (10 percent, 2021: 9 percent) received advice via text chat on the website or app, a similar number (9 percent) received advice via video call (2021: 7 percent). Only 2 percent sought advice via messenger (2021: 3 percent). 35 percent (2021: 37 percent) used classic advice in person on site, while 26 percent still sought advice by telephone. However, there is a lot of room for improvement when it comes to the quality of advice. Telephone advice performed best, with around two thirds (64 percent) being satisfied. 56 percent expressed satisfaction with their advice via video call or email, 52 percent with personal on-site advice. Not even half (42 percent) of those who get advice via text chat are satisfied with it. And at the bottom of the list is messenger advice, which is only well received by 19 percent.
Berg: “The high level of dissatisfaction with the quality of advice should give providers pause. Digital solutions fundamentally make it possible to more individualize advice and offer it regardless of location. This potential must be used more.”
In this way, technical expertise can be consulted digitally for advice that is often not available in the necessary depth in a branch.
Loyalty to your house bank is more and more a thing of the past
Loyalty to the house bank has been decreasing for years, and this trend is continuing. For the first time, more than half of German citizens with a bank account (51 percent) have already changed the account they mainly use. A year ago it was only 47 percent, in 2018 it was only 34 percent. And anyone who has already changed their bank details will most likely do it again. A third (33 percent) have already made four or more changes, 45 percent have changed three times.
“If the new bank details are just a click away, then no one can rest on their past successes. “Customers’ willingness to change gives growth opportunities to those banks that develop innovative, digital offerings,” says Berg.
The main reasons for switching accounts are wider access to free ATM withdrawals (71 percent), lower costs (67 percent), a free credit card (59 percent) and better customer service (56 percent). A stronger ecological or social orientation of the bank was a reason for changing for 45 percent, the better branch network for 41 percent and a broader product range for 39 percent. 3 out of 10 (29 percent) have changed because of a better digital offering; among 16 to 29 year olds the proportion is significantly higher at 38 percent. Other reasons for switching banks include a better image (22 percent), the recommendation of third parties (21 percent) or a switching bonus (20 percent). However, advertising hardly plays a role, as it was only a reason for switching for 2 percent.
Cryptocurrencies: The financial industry could give Bitcoin & Co. a boost
The topic of cryptocurrencies, which is hotly debated in the financial industry, could get a boost from an offer from established banks. Around a fifth (18 percent) would buy cryptocurrencies such as Bitcoin from their own bank - 9 percent definitely and 9 percent probably. So far only 6 percent say they have ever purchased cryptocurrencies.
“Cryptocurrencies are not a form of investment for everyone. But they can play a role in an investment strategy,” says Berg. “There is obviously a desire among many customers to enter the crypto market through their bank.”
Insurance: Online insurance is already dominant among younger people
Online channels are becoming increasingly important not only in banking, but also in taking out insurance. A majority of 53 percent took out their last insurance the traditional way, for example in the office of an insurance agent or broker (23 percent) or during a home visit (18 percent) or in a bank branch (11 percent). However, 44 percent recently completed an online degree. The most common purchases were made directly online with an insurance company (18 percent) or on an online comparison platform (15 percent). 7 percent have taken advantage of an online insurance offer, for example for their new cell phone or electrical appliances. 2 percent each took out policies by email or online banking. There are clear differences between the age groups. Online qualifications are already dominant among younger people today. 56 percent of 16 to 29-year-olds took out their last insurance online, compared to 53 percent of 30 to 49-year-olds. But even among those aged 50 to 64, only slightly less than half (46 percent) recently chose the online degree. Only older people aged 65 and over are hesitant, only a fifth of whom (22 percent) got their insurance contract digitally. The telephone business, on the other hand, is dead; only 1 percent have taken out an insurance contract over the phone.
“For the insurance industry, too, the path to the online world is irreversible and imperative,” says Berg.
There is a lot of catching up to do with insurance
However, providers still have a lot of catching up to do when it comes to online qualifications, as there is a high level of dissatisfaction with the offer across all age groups. More than half (52 percent) of those who have purchased insurance online say the process was very complicated (26 percent) or somewhat complicated (26 percent). 31 percent found it rather easy, only 15 percent found it very easy.
As with banking, in the coming years the smartphone could become the most important channel for contact between insurers and old, but also new, customers. So far, only 12 percent of all respondents have taken out insurance on their smartphone, but almost three times as many (34 percent) can imagine doing so in the future. Especially if you want to reach younger people, you should use your smartphone. Among 16 to 29 year olds, 19 percent have so far used their smartphone to take out insurance, and a further 42 percent believe this is possible in the future. Among 30 to 49 year olds the proportions are only slightly lower at 15 and 39 percent respectively. And even among those aged 50 to 64, 40 percent would consider getting a smartphone degree in the future, and 11 percent have already done so. Older people aged 65 and over are the most reserved at 3 and 16 percent respectively.
“It is not enough to simply make any digital insurance offer. In terms of user-friendliness, insurers have to compete with common standard services such as online retailers – the bar is high for insurers,” says Berg.
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Source: BITKOM
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