Trustly publishes its inaugural report The State of Online Banking

Ahead of the report’s release at Money20/20 Europe next week, The Paypers sat down with Stefan Backlund, ?Vice President Marketing & Communications at Swedish fintech company Trustly to discuss its findings on consumer behaviour and opinions related to online banking in seven major European markets.

Trustly has conducted its inaugural ‘The State of Online Banking’ report. Can you tell us more about it?

We conducted the report in partnership with Nepa, the leading provider of data-driven consumer insights, with the aim of obtaining a detailed view of consumer behaviour in online banking. We targeted seven countries for this first report: the UK, Germany, France, the Netherlands, Italy, Spain and Sweden. In terms of methodology, we surveyed 1,000 respondents in each market between the ages of 18 and 66 over a two-week period. We are excited to release our findings at Money20/20 in Copenhagen next week.

Charles Ye (Analyst intern), Stefan Backlund (VP Marcom) and Emma Lindgren (Project manager) at the Trustly HQ in Stockholm

What does this report try to convey that other reports on online banking do not?

There are many great reports on consumer preference for specific banking services over others, as there are in relation to global banking trends, but none provides comprehensive insights into consumer preferences across several European markets – particularly featuring countries that many consider to be first movers in the sector, such as Sweden.

What interesting findings have surfaced from the report?

As you can imagine, there are quite a few noteworthy insights that have surfaced from the report. In general, we see that online banking behaviours vary drastically from one market to the next. For example, when it comes to paying bills online, 86% of Germans respondents reported paying their bills online while in France and Spain that number drops to 37% and 43%, respectively. Another interesting finding is that 79% of respondents in the UK agreed that the banks’ systems are reliable when purchasing online, compared to 85% in the Netherlands. We know that the UK market is dominated by cards, but it suggests there is room for growth when it comes to alternative payment methods like online bank payments.

What overarching trends are you seeing in all countries?

Trust levels were a particularly remarkable theme. While respondents admitted that their general trust in banks was not impressively high, we discovered that on average most consumers place more trust in the bank that they use, especially when it comes to conducting money transfers safely. So while people might feel indifferent or negative towards banks, there is no trust issue on a direct consumer level. However, it is also interesting to note that in some of the countries where banks are seemingly at the forefront of digitalization, such as Sweden, the level of both trust and satisfaction is in fact lower than in others, like France for example. Of course, this is just the tip of the iceberg and you will have to wait until next week to see what else we have found.

How do you see online banking evolving over the next few years? Any predictions for the next report?

There is a clear increase in customer demand for both a higher degree of security while also a greater demand for convenience. I think this will push authorities to consider the authentication methods available and how these can be streamlined. In Sweden, for example, there is a clear correlation between the nationally standardised authentication method, BankID, and customer convenience, which has been a driver for innovation in the sector and through it a change in both bank and consumer behaviour. It would not surprise us to see a similar change in the other European markets, particularly the UK, in the future.

Another development that we expect is the increase in prominence of interbank P2P payment networks, much like Swish in Sweden, which gives consumers a stronger incentive to interact with their online bank. This is something we are now seeing in the US, where more than 30 banks have joined forces to create a platform called Zelle, which is set to launch this year. It is clear to us that partnerships is the way to go.

Interested in reading Trustly’s full report on ‘The State of Online Banking’? Drop by Trustly’s booth at Money20/20 next week or visit thestateofonlinebanking.com on or after June 27.

About Stefan Backlund

Stefan is Vice President of Marketing & Communications at Trustly Group AB and previously held consumer marketing positions at Klarna and Philips. Stefan is passionate about UX and innovation in fintech and has a background in interaction design.

About Trustly

Trustly Group AB, founded in 2008, is a Swedish fintech company that makes online banking e-payments fast, simple and secure. The company offers cross-border payments to and from consumer bank accounts at over 3,300 banks in 29 European markets and connects businesses and consumers within ecommerce, travel, gaming and financial services.

Trustly has 150 employees and is headquartered in Stockholm, Sweden, with regional offices in Spain, Malta, Germany and the UK. Trustly is a licensed payment institution under the supervision of the Swedish Financial Supervisory Authority.