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
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
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, Containers, 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 opportunity. Submit y...
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will discuss the vast to...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...