Friday, January 27th, 2012
Online banking is a good example of how the internet is changing customer interaction with financial service providers. According to the latest Roy Morgan September 2011 data, online banking has experienced solid growth over the last ten years (up 33.1% to 45.1%), at the expense of all other methods of interacting with a bank, such as branch visits (down 9.6% to 52.3%) and phone banking (down 16.6% to 23.7%).

The ATM remains the most frequently used banking channel with 67% of New Zealanders (14+) having used a machine in the last four week period, although this method has trended down over the last five years. In Australia, internet banking (45.8%) has now overtaken branch visitation (44.1%).

The implication of this change for financial institutions and their customers is that the lack of personal interaction involved in online banking may lead to a weakening of traditional relationships and loyalty, making it easier for people to switch banks or split their banking across a number of institutions.

Major Banking Channels Used in the Last 4 Weeks

Source: Roy Morgan Research, Oct 10 – Sep 11 n = 12,015.

Pip Elliott, Client Services Director, Roy Morgan Research, says:

“The increase in Internet usage and accessibility is moving bank customers away from the more traditional banking channels. With consumers having 24 hour access to online banking from their computers, mobile phones and other wireless devices, combined with our general move towards an ‘online lifestyle’, the trend looks set to continue.

“The Internet allows consumers to let their fingertips do the walking and saves time travelling to the bank, parking, queues and other hassles involved. The convenience of having finances available at the click of a button allows consumers flexibility.”

The complete detailed New Zealand State of the Nation Report  provides information on other economic trends, as well as society, technology, politics and the environment.

Detailed Roy Morgan Early Adopter Profiles provide an in-depth look at New Zealanders who consider themselves one of the first to be aware of the latest financial products.

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Roy Morgan Research

Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332


online banking, financial service providers



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