“Banks will have to increase their operational efficiency and improve the customer experience if they want to keep their position in core markets. Non-traditional and digitally mature companies are winning market share partly because they are able to match the digital expectations of the 21st century customers,” explains Pascal Martino, Partner and Digital Leader at Deloitte Luxembourg.

Lagging behind

Deloitte analyzed the banks’ digital offering across five dimensions; onboarding, content and functionalities, design and ergonomics, navigation and finally safety and security. The results show an important gap between the digital performance of banks in Luxembourg compared to the digital maturity of banks abroad.

“Banks that belong to a larger group may be able to capitalize on group investment and learn from best practices abroad. This includes reinventing customer assistance such as 24/7 chat and P2P-support. Another important aspect is the possibility to personalize the online experience and customize the landing page based on user profile, “ comments Petra Hazenberg, Partner and Customer & Market Strategy Leader at Deloitte Luxembourg.

Changing customer demographics, the emergence of non-traditional competitors combined with multiple regulatory requirements and increased pressure on fees are changing the competitive environment in which banks operate. While multiple banks abroad have put customer-centricity and tech savviness at the core of their strategy, the degree of digital maturity of the banks in Luxembourg vary substantially.

“None of the banks included in our analysis allow the customer to open an account end-to-end online. It is currently easier for customers in Luxembourg to open a bank account by visiting the brick-and-mortar branch than through online channels. In this area, banks differ strikingly from the new market players who offer a convenient end-to-end online process,” concludes Petra Hazenberg

The full report is available here: www.anywealth.lu/report/2015_11_11_Deloitte_Digital_Web.pdf