Welcome!

News Feed Item

Insight Report: Current Accounts - Emerging Trends, Product Insights and Case Studies

NEW YORK, Aug. 18, 2014 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Insight Report: Current Accounts – Emerging Trends, Product Insights and Case Studies

http://www.reportlinker.com/p02238329/Insight-Report-Current-Accounts-–-Emerging-Trends-Product-Insights-and-Case-Studies.html

Synopsis

The report discusses the various trends relating to current accounts – also known as checking accounts – across the world, and the strategies adopted by banks to increase profitability:

  • It highlights emerging trends in the current account markets in America, Europe, Asia-Pacific, and the Middle East and Africa
  • It discusses key drivers fueling demand for current accounts, and key issues and challenges faced by banks across various regions.
  • It provides analytical insights into the key emerging trends of the current markets arising because of the regulatory and economic developments in these regions
  • It provides a competitive assessment of the current accounts offered by the leading lending banks in key developed and emerging economies.

Summary

Due to changes in regulatory frameworks and competitive dynamics, retail banking and its current account business have changed gradually during the last decade. Despite initiatives taken by banks to retain customers, the current accounts market in developed economies recorded growing instances of account switching. Improved customer service, attractive reward programs and financial incentives offered by banks are the main factors encouraging customers to switch their primary banks.

In emerging economies, pricing has been the primary reason for the low volume of banking customers. As pricing is affected by cost pressures and changing customer expectations, banks are adopting a number of product and pricing strategies in the form of loyalty programs, incentives, packaged current accounts and customized product offerings to entice customers. Furthermore, with increasing technological advancements, banks are encouraging customers to use low-cost banking channels to conduct banking transactions, resulting in reduced operating costs and improved profitability.

With rising competition and regulatory pressure, banks in the US are increasing charges on current accounts in order to maintain profitability. Consequently, the percentage of free checking or current accounts dropped from 76% in 2009 to 38% in 2013. This has led customers to switch to banks offering no, or low, monthly fees on basic checking accounts. The UK current account market also recorded a high number of customers switching accounts. Robust customer service mechanisms, branch proximity, flexible banking hours and attractive reward programs are factors enticing customers to switch banks. The switching of accounts was further intensified with the introduction of the Current Account Switch Service by the Payments Council on September 16, 2013, which allows fast and seamless switching to new banks. For the six-month period between October 1, 2013 and March 31, 2014, 609,300 UK current accounts were switched, a 14.0% increase compared to the equivalent period in 2012 when there were 532,500 switches.

Due to firm's capitalizing on this trend, the current account market has recorded a number of new entrants. T-Mobile, a provider of wireless voice, messaging, and data services launched a mobile-based checking account in the US in January 2014, with low banking charges. Similarly, UK-based retailer Tesco is also launching current account products in the UK through its banking arm, Tesco Bank.

Scope

  • This report highlights the key trends arising in key current account markets following the global financial crisis.
  • The report gives an insight into current accounts offered by banks in countries such as the US, Canada, Brazil, the UK, Germany, India, Australia, the UAE and South Africa.
  • The report outlines the various factors affecting consumers' choices of current accounts in these markets.
  • The report also discusses the key drivers, issues and challenges faced by retail banks when offering current accounts in these countries.

Reasons To Buy

  • Gain insights into the current accounts markets of developed and emerging economies in the Americas, Europe, Asia-Pacific, and the Middle East and Africa.
  • Gain an understanding of the amendments brought about in current account markets following the global financial crisis.
  • Gain analysis of current account markets based on strategies adopted to improve products and product portfolios.
  • Gain insights into key operational and regulatory trends in key current account markets.

Key Highlights

  • Free checking accounts (accounts with no charges) are diminishing as banks impose fees to improve profitability. According to Bankrate, free checking accounts in the US dropped from 76% in 2009 to 38% in 2013. The average monthly fee of non-interest bearing checking accounts up 25% in 2012 with a monthly fee of US$5.48 with an average balance of US$723 to be maintained to waiver the surcharge fees.
  • The use of overdraft protection by account holders is rising rapidly in the US, making overdraft protection a major revenue-generating component for banks. Overall, 13 million consumers used overdraft protection in 2010 in the US, generating revenues of US$35.0 billion for banks. Banks offer overdraft protection to avoid the bouncing of checks, or insufficient funds in cases of debit card transactions.
  • According to the German Bundesbank and IMF forecasts, the German economy is expected to be relatively stable over the next five years, despite the financial uncertainties faced by most European countries. Consequently, consumer spending is expected to grow over 2014?2018. The promotion and development of payment cards will offer substantial growth for the industry. As a result of the Bundesbank's decision to outsource more of its cash-recycling facilities to private companies, cash is likely to be less attractive for retailers, as cash-handling services were previously provided by the Bundesbank at little or no cost.
  • Rural and agricultural industries form a noticeable proportion of the economies in many Asia-Pacific countries. Banks and financial institutions offer current accounts to farmers and the rural population, with minimal fees, as they look to build a presence in unbanked agricultural areas. Agri-current accounts are designed for those in agriculture-related businesses or trading in agricultural commodities.
  • The expatriate population accounts for significant proportions of the total populations in many Middle East countries. The UAE's expatriate population accounts for more than 80% of the total population, followed by Kuwait and Oman where the expatriate populations account for 63% and 62% respectively. Saudi Arabia, Qatar and Bahrain have 30%, 27% and 26% of their total population as expatriates.

Table of Contents1 Executive Summary2 Global Snapshot – Current Account Market Dynamics2.1 Assessment of Market Trends2.2 Key Drivers2.3 Challenges3 The Americas3.1 Emerging Trends3.2 Product Comparison3.2.1 Product comparison – the US3.2.2 Production comparison – Canada3.2.3 Product comparison – Brazil3.3 Strategies4 Europe4.1 Emerging Trends4.2 Product Comparison4.2.1 Product comparison – the UK4.2.2 Product comparison – Germany4.3 Strategies5 Asia-Pacific5.1 Emerging Trends5.2 Product Comparison5.2.1 Product comparison – Australia5.2.2 Product comparison – India5.3 Strategies6 The Middle East and Africa6.1 Emerging Trends6.2 Product Comparison6.2.1 Product comparison – UAE6.2.2 Product comparison – South Africa6.3 Strategies7 Case Study7.1 First Direct – Upfront Incentives Encourage Customers to Switch to its Current Accounts7.2 Bank of America – "Keep the Change" Initiative to Acquire Customers7.3 T-Mobile – Mobile-Based Checking Accounts in the US7.4 Union Bank – Empowering Customers to Create their own Current Accounts7.5 HDFC Bank – Implementation of Effective Customer Segmentation and Distribution Strategies7.6 Absa Bank – Introduction of Packaged Current Accounts8 Appendix8.1 Methodology8.2 Contact Timetric8.3 About Timetric8.4 Timetric's Services8.5 Disclaimer

List of Tables

Table 1: Global Current Market Snapshot – Emerging Trends and Strategies Adopted

Table 2: Economic Conditions in Key Markets, 2009 and 2013

Table 3: Debit Cards – Volumes in Key Countries (Million), 2009–2018

Table 4: New Businesses Registered in Key Countries, 2009–2012

Table 5: Unbanked Populations in Key Developing Economies, 2013

Table 6: Open-Loop Prepaid Cards Segment Value (US$ Billion), 2009–2018

Table 7: Canada – Current Accounts With Low Charges

Table 8: The US and Canada – Online and Mobile Penetration, 2013

Table 9: The US – Checking Account Types, March 2014

Table 10: The US – Basic Checking Accounts, March 2014

Table 11: The US – Premier Checking Accounts, March 2014

Table 12: The US – Student Checking Accounts, March 2014

Table 13: Canada – Checking Account Types, March 2014

Table 14: Canada – Everyday Banking and Checking Accounts, March 2014

Table 15: Canada – Unlimited Banking Current Accounts, March 2014

Table 16: Brazil – Current Account Types, March 2014

Table 17: Brazil – University Current Accounts, March 2014

Table 18: Brazil – Business Current Accounts, March 2014

Table 19: The UK – Current Account Types, 2014

Table 20: The UK – Basic Current Accounts, March 2014

Table 21: The UK – Graduate Current Accounts, March 2014

Table 22: Germany – Current Account Types, 2014

Table 23: Germany – Basic Current Accounts, March 2014

Table 24: Germany – Premium Current Accounts, March 2014

Table 25: The UK – "With Benefits" Current Accounts

Table 26: Asia-Pacific – Current Accounts With Low Banking Charges

Table 27: Australia –Transaction Account Types, March 2014

Table 28: Australia – Everyday Banking, March 2014

Table 29: Australia – Everyday Business Accounts, March 2014

Table 30: India – Current Account Types, March 2014

Table 31: India – Regular Current Accounts, March 2014

Table 32: India – Agri-Current Accounts, March 2014

Table 33: Asia-Pacific – Current Accounts for Specific Customer Segments

Table 34: The Middle East and Africa – Economic Indicators, 2013–2018

Table 35: The UAE – Current Account Types, March 2014

Table 36: The UAE – Current Accounts, March 2014

Table 37: The UAE – Business Current Accounts, March 2014

Table 38: South Africa – Current Account Types, March 2014

Table 39: South Africa – Basic Current Accounts, March 2014

Table 40: South Africa – Small Business Current Accounts, March 2014

Table 41: The Middle East and Africa – Specific Current Accounts for High-Income Customers

Table 42: The Middle East and Africa – Specific Current Accounts for Students and Young People

Table 43: HDFC Bank – Current Accounts for Specific Customer Segments

List of Figures

Figure 1: Percentage of Respondents Forming New Primary Relationships With Banks, 2013

Figure 2: The US – Free Checking Accounts (%), 2009–2013

Figure 3: The Americas – Open-Loop Prepaid Card Growth Rates, 2009–2018

Figure 4: Europe – Users of Mobile Banking, July 2013

To order this report: Insight Report: Current Accounts – Emerging Trends, Product Insights and Case Studies http://www.reportlinker.com/p02238329/Insight-Report-Current-Accounts-–-Emerging-Trends-Product-Insights-and-Case-Studies.html

Contact Clare: [email protected]
US: (339) 368 6001
Intl: +1 339 368 6001

SOURCE Reportlinker

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.