The document discusses the rise of mobile banking in Europe, with over 90% of Luxembourg customers now using online or mobile banking, and examines the leading mobile-first digital banks that are setting new standards in customer experience; it also presents the results of a benchmarking study conducted by zeb that evaluated over 115 European mobile banking apps across key dimensions of customer onboarding, user experience, everyday banking, additional services, and cross-selling, finding that challenger banks like N26 and Revolut currently lead in mobile banking excellence.
3. Mobile banking has rapidly become a prime customer touchpoint and channel
in global retail banking – trend being accelerated by the Covid-19 crisis
Digital transformation of customer behavior in retail banking
9%
53%
51%
35%
40%
12%
80%
100%
0%
40%
20%
60%
201820152011 20132010 2012 2014 2016 2017
Branch Banking Mobile BankingOnline Banking
Customer interaction globally is significantly shifting
towards digital/mobile…
…while the share of mobile is substantial across
all types of interactions already
25-50%
70-80%
Transactions Simple sales
50-70%
Complex salesServices
20-40%
(share of mobile interaction type of digitally active customers, 2018)
Source: KeplerCheuvreux, zeb.project experience, zeb.research
3
4. With European customers, mobile banking has also broadly taken off in terms of relevance –
in Luxembourg over 90% are using online and/or mobile solutions in day-to-day activities
Rise of Mobile Banking in Europe
48%
seeing Mobile Banking as the most
powerful technology in banking
34%
of Luxembourgers using their smartphone
to check their bank balance in 2018
(+20% year-over-year)
31%
of the Web traffic in Luxembourg being
generated through the smartphone in
2018 (+15% year-over-year)
Source: zeb.research, Fujitsu study, Postbank Digitalstudie 2020, Deloitte 2018, Statista 2020
4
31%
of total revenue in Germany will be
closed online/digital (~50% in 2023)
5. Leading mobile first players set standards in customer experience
New standards in digital banking
Speedy and easy
e-2-e digital
onboarding
Clear and mobile
native design
Simplified payment
functionalities
Extended financial
services offerings
focusing on digital
propositions
Some targeted
beyond banking
value added offerings
5
6. The potential of mobile banking is demonstrated by rapid/strong customer growth
of leading mobile-first/digital banks
Prominent international digital banks
Country of origin
Market launch
Users
Special features
UK
2015
12m
• Offer their customers
broad range of banking
products via app only –
from classic bank transfers
to live securities trading,
up to crypto currency
trading
• Special edge/selling
proposition in
international payments
• Revolut effectively
provides other services
beyond traditional
banking business lines
(e.g. concierge, lounge)
DIFFERENTIATION / KILLER FUNCTION
DE
2015
5m
• Offer their customers
broad range of banking
products via app only –
Look & Feel of N26’s
mobile app has
revolutionized customer
experience in Germany
• Platform concept of N26
is expandable as desired
UK
2015
4m
• Introduced innovative
features to increase
relevance/ encourage
recurring usage, incl.
allowing customers to
switch energy
suppliers/tariffs and use
third-party savings
accounts
• Unlimited fee-free
international spending &
withdrawals
• Rapid innovation based
on customer feedback
RU
2006
10m
• Offer a full range of
financial and lifestyle
services for individuals &
businesses via mobile app
• Tinkoff supper-app
includes daily banking,
lifestyle, rewards, market-
place, voice assistant, etc.
• Tinkoff offers
personalized
recommendations and
cross-selling
opportunities building on
anticipation of customer’s
financial needs
BR
2013
20m
• Market entry with an
digital account and an
credit card without fees
• Offer loans with
personalized interest
rates
• App allows tracking
transactions, contacting
support directly and
savings account
• Earn loyalty reward
points for each purchase
• Splitting a bill amongst
multiple people
Source: zeb.research, company information
6
Back-up
8. Mobile banking excellence is shaped in 5 key dimensions from onboarding to cross-selling –
customer experience in each lever itself is driven by several underlying features
Mobile Banking Excellence – assessment framework
MOBILE BANKING EXCELLENCE –
KEY DIMENSIONS
Customer Onboarding
Online account opening flow with information collection about prospective
clients, remote identification/verification of customer (KYC), order cards,…
1
UX, Access & Engagement
Simple, customer-friendly and responsive app design with easy-to-use interface
and clear structure, Biometric authentication, in-app contact center chat,…
2
Everyday Banking
(Personalized) accounts overview, domestic/ intern. payments, mobile payment
solutions, instant payment and real-time push-notification,…
3
Beyond Banking
Offering additional value-added services, e.g. gamification, mobility services,
e-government, perks, personal assistance,…
4
Cross-Selling
In-app promotion of other financial products & services – overdraft activation,
consumer loans, savings, insurance,…
5
8
9. zeb has developed a unique benchmarking tool that allows us to analyze and evaluate more
than 110 banking app features – we recognize all spaces for improvement of your app
Mobile Banking Excellence – holistic approach
A B C
Development of a unique
benchmarking Tool
zeb.Benchmarking Tool enables the
analysis and evaluation of all
banking apps
More than 110 (non-) banking
functions along five dimensions
defined on three levels of detail
Scoring scale is from 1 (not available)
to 5 (outstanding)
Weighting of individual features as
per importance (three levels)
Extensive user testing of European
banking apps
Local test users opening mobile
banking account with at least five
home market banks
Test users were assisted by
benchmarking experts to contribute
their expertise in mobile banking
and to ensure some comparability
In-depth assessment of the tested
banking apps
Individual assessment of the peer
group by analyzing key results of the
conducted benchmarking
Identification of best-in-class apps
and functions in the market
Identification of white spots for
improvement
9
10. zeb has built a comprehensive database of European mobile banking offerings – more than
115 apps across ~21 European countries currently assessed
Mobile Banking Excellence – European database
European countries included~21
Mobile banking apps evaluated>115
# of (non-) banking functions>110
In-depth assessment of 9 Retail banking apps of the
Greater Region by experts and local test users...
…who rated the banking apps along ~110 functions
across 5 key dimensions
10
Luxembourg
Snapshot 09/20
11. Pan-European challenger banks like N26 and Revolut lead the Mobile Banking market in
Europe across all dimensions, followed by some established banks (i.e. Tinkoff, mBank, Tatra)
Leading European banks in mobile banking – overall performance
1) & 2) Only those apps were considered that were analyzed in the benchmarking (scoring based on zeb.Benchmarking)
Source: zeb mobile banking benchmarking; Scores from 1 (feature not applicable) to 5 (class-leading)
11
▪ Challenger banks clearly in the lead,
with N26, Berlin-based Neobank, in the
pole position
▪ N26 and Revolut creating a convincing
customer experience in multiple markets
through their distinctive UI and design
▪ But some established banks in Eastern
Europe, like Tinkoff (RU) and Tatra (SVK),
also with outstanding mobile banking
offerings
▪ The leader in Luxembourg convinces with
an E2E mobile account opening, an
advanced UX and a clear value
proposition for everyday banking
TOP APPS IN THE EUROPEAN RETAIL MARKET1)
3.3
3.2
3.0 3.0
2.9 2.8 2.8 2.8 2.7 2.6
5.0
0.0
1.0
2.0
3.0
4.0
Illimity
(IT)
N26
(EU)
Revolut
(EU)
Buddybank
(IT)
Tinkoff
(RU)
DKB
(GER)
mBank
(PL)
Tatra
(SK)
ING
(PL)
Moneta
(CZ)
Leading Luxembourgish
banking app with a
score of 3.17
Extract
12. Luxembourgish and cross-border banks show significant development potential in all
dimensions - Challenger banks and international market leaders set market standards
19
Luxembourg Mobile Banking Benchmarking overview
▪ Challenger banks such as N26 and
Revolut clearly at the forefront of
mobile banking benchmarking -
clear market leadership in four of five
dimensions
▪ Mobile banking apps of traditional
banks with average overall rating
compared to digital banks
▪ National retail banks are relatively
convincing with a good user
interface and everyday banking
features
▪ Customer onboarding, beyond
banking and cross-selling have
significant room for expansion in
the Luxembourgish market -
positioning not yet established
Legend: 0 – feature not applicable; 1 – not available; 2 – simple; 3 – standard; 4 – above standard; 5 – outstanding; Source: zeb mobile banking benchmarking
Luxembourgish
Retail Banks1
Neo / Challenger
Banks
International
Market Leaders
Customer
Onboarding
UI, Access &
Engagement
Everyday
Banking
Beyond
Banking
Cross-
Selling
2,4
3,0
4,0
2,8
2,8
3,5
1,1
1,8
2,0
3,5
2,5
2,7
2,5
2,0
2,8
1) Includes 3 retail banks from the Luxembourg Greater Region
Snapshot 09/20
14. As a leading strategy and management consultancy for the financial services sector in
Europe, zeb has in-depth knowledge of the local banking market and the success factors
zeb core
LOCAL MARKET KNOW-HOW
As a leading strategy and management consultancy for the financial services sector in Europe, zeb has in-depth
knowledge of the local banking market in Europe and excellent relationships, e.g. with authorities
PASSIONATE BANKING-SPECIALISTS
Advanced digital skills and method experts with more than 20 years of relevant experience as well as creative and
excellent young stars – more than 700 specialists on all aspects of the bank, retail banking in particular
BUSINESS MODEL KNOW-HOW RETAIL BANKING
Deep knowledge of business models and revenue pools of European Retail banking and strategic positioning of
leading market participants
MODELLING EXPERTISE
In-depth experience by accompanying various projects for modeling product, portfolio or company business cases
as well as creation of scenario calculations
STRATEGY EXPERTISE
In-depth expertise in accompanying strategy processes and deriving customer-centric business models and
solutions as well as supporting market entry strategies, particularly in the DACH region
14
15. zeb is one of the leading strategy and management consultancies specializing in the financial
services sector in Europe
zeb profile
EUR 174 million of
turnover
20% average
turnover growth
700+ clients
> 90% of which
are regular clients
Founded in 1992
Founders: Prof. Dr. Bernd Rolfes &
Prof. em. Dr. Dres. h. c. Henner Schierenbeck
17 offices
Amsterdam, Berlin, Copenhagen, Frankfurt, Hamburg, Kiev,
London, Luxembourg, Milan, Moscow, Munich, Münster,
Oslo, Stockholm, Vienna, Warsaw, Zurich
13 countries
Austria, Denmark, Germany, Italy, Luxembourg, the
Netherlands, Norway, Poland, Russia, Sweden, Switzerland,
Ukraine, United Kingdom
1,000+ employees
Management consultants: ≈ 500
IT developers and IT consultants: ≈ 260
Research / knowledge management: ≈ 40
60+ Partners
Managing Directors:
Prof. Dr. Stefan Kirmße
Dr. Markus Thiesmeyer
2,200+ projects
In all relevant fields: from strategic
planning to implementation
15
Turnover, client and project figures from 2019, turnover growth since foundation from 1992–2019
16. Your
contacts
Arnd Heßeler
Executive Manager
Phone +352.273.561.305
Mobile +352.691.466.230
arnd.hesseler@zeb.lu
Luxembourg office
Joël Theisen
Manager
Phone +352.273.561.301
Mobile +352.691.466.041
joel.theisen@zeb.lu
Luxembourg office
Marko Dimitrov
Intern
Phone +352.273.561.801
Mobile +352.691.466.229
marko.dimitrov@zeb.lu
Luxembourg office
Dr. Marc Buermeyer
Partner
Phone +49.89.543433.351
Mobile +49.151.42612616
mbuermeyer@zeb.de
Office München