Online Banking Gathers Pace in Europe

Online banking in Europe continues to grow, and is thriving in many markets, despite the current tough economic climate, according to the latest figures released by Nielsen//NetRatings.

18.6 million Europeans visited an online bank or building society site during October 2002, a rise of three million people in six months. Usage of online banking is far from consistent across European markets though, with the Netherlands and Sweden leading the way in online banking penetration and some of Europe's larger markets lagging behind. In the Netherlands, 97% of visitors to financial sites use an online bank. In Germany, this figure is only 60%.

In the UK, 4,997,000 people managed their finances online in October 2002 at home, and 7,019,000 from both home and work. Unlike the other European markets where established offline brands dominate, Britain's favourite online bank is an Internet-only brand egg.com, which attracted over 1.5 million people in October 2002. Traditional high street brands Lloyds, Barclays, HSBC and NatWest make up the top five retail banking sites. The UK is a highly competitive market with five or six banks fighting for audience share, compared to some other European markets where one or two banks dominate.

'Even though the online banking market is growing in Europe, these figures suggest there is still plenty of room for expansion in some markets,' said Tom Ewing, Internet Analyst. 'Some of Europe's biggest offline banking markets, including Germany and the UK, still have potential for further development compared to the Netherlands and Sweden. The key may be converting existing users of financial websites to other online financial offers.'

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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