Subject to regulatory, technological and competitive pressure, banks are reinventing their model. Customers are better informed, more demanding regarding customization, sharper on costs, and therefore increasingly volatile. Indeed one in four French people have considered leaving his bank during the last twelve months.
The management consulting and information system firm Solucom have collaborated with Opinionway to conduct a survey with 2,000 French people of 18 years and over on banking and payment habits.
Since 2009 with the first European Directive on payment services, banks have been faced with new competitors (payment institutions) on the payment service provider industry. The French do not seem to be aware of this change: 70% of French people continue to believe that bank is still the most legitimate organization when it comes to new mobile payment solutions, far ahead of card providers as Mastercard or Visa (45%) or phone operators (10%). Moreover, the possibility to pay for online purchases via the website of a bank gains a favourable reaction from 79% of people. Respondents perceive a simplification of the act of purchase with a guaranteed level of security.
A lack of information on NFC ?
In over 80 % of cases, NFC (Near Field Communication or contactless communication) is automatically assigned to a card at the time of renewal, but without specific communication to the customer. What is the consequence of this non-communication? It is that only one in three French people claim to have a contactless payment card, whilst in reality nearly 50% have got one (according to the NFC Observatory)! Banks would therefore benefit from greater product education if they wish to see this new payment method become widespread.
In secure payment solutions, there is Paypal, which is the market leader with its 220 millions (global figures). To counteract this virtual monopoly, banks have come together to offer a competitor to the giant PayPal. Banks also seem to have a place in this market if we believe the Solucom/Opinionway study. Indeed, 60% of respondents cite their bank as the most suitable party to ensure the security of their transactions.
Regarding the bank card, we learn from this study that 97% of French people have at least a standard credit card (Visa or MasterCard for example), only 36% have more than one credit card and 95% use it for their online purchases. In this sector, some stores must compete with banks. The shops such as Printemps, La Redoute, Cofinoga offer payment cards (excluding loyalty cards): 14% of French people possess one.