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
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 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 Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
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...
SYS-CON Events announced today that StarNet Communications 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. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
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 ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...