Two years have passed since Deloitte Digital first decided to take a closer look at the digital performance of a selection of Luxembourg banks. The first Digital Banking Benchmark report, which was released in 2015, concluded that Luxembourg banks had quite some room for improvement when it came to their digital offering. The hot-off-the-press 2017 report indicates that Luxembourg banks are working to close the gap to banks in other countries, and that overall banks in Luxembourg have improved their digital performance over the last two years. The pace of change, however, remains slow.

Pascal Martino, Deloitte Digital Leader in Luxembourg, highlights the limited size of the Luxembourg market as one of the main reasons why banks in Luxembourg are struggling to keep up with the digital pace of banks in neighboring countries and beyond.

“The investment needed to bring a traditional bank up to digital speed is considerable. Over the past years, the majority of banks in Luxembourg have focused on adapting to new regulations, and as a consequence, improvements to their digital channels and their digital offering take time,” explains Pascal Martino.

Adding new categories
The Digital Banking Benchmark 2017 offers an in-depth analysis of the Luxembourg digital banking market for retail clients, highlights the improvements carried out since the first benchmark study and compares the digital maturity of Luxembourg banks to that of banks in neighboring countries.

The study assesses about 10 selected banks in Luxembourg on eight dimensions representing a total of 230 criteria and covers web banking, mobile banking and the banks’ public websites. As in the 2015 report, the analysis includes the onboarding process, content & functionalities, design & ergonomics, navigation and cybersecurity. In addition, the 2017 report also covers three new categories: advice, credit & personal loans as well as account closing.  

In an environment where fully-digital banks, FinTechs and new entrants are gaining traction, the report suggests that banks in Luxembourg would need to increase their efforts to meet customers’ high expectations when it comes to user experience.

No online loan requests
The findings indicate that Luxembourg banks should focus on improving five main aspects of their digital offering, such as allowing for automated account openings and online loan requests, offer customized advice and smart money management tools, 24/7 virtual assistance and a more customized client service as well as improved cybersecurity features for their mobile banking applications.

“New entrants are already revolutionizing the traditional banking market mainly because they excel at offering a great user experience to digitally savvy customers. Our report shows that banks in Luxembourg have made considerable progress to their digital performance over the last two years, but a lot still remains to be done. Luxembourg banks would need to raise their game if they would like to match the efforts of banks in neighboring countries,” concludes Pascal Martino.

Read the full report here:

https://www2.deloitte.com/lu/en/pages/banking-and-securities/articles/digital-banking-benchmark.html