Savings banks surpass neobanks in digitization
Savings banks lead the field in Germany when it comes to digitization. This is indicated by the "Digital Banking Index 2023" study conducted by the consulting firm Oliver Wyman. The analysis examined 57 European banks and financial groups, including 14 from Germany. The level of digitization was measured in four categories: digital distribution, user-friendliness and support, digital innovation, and digital marketing. Bank experts assessed a total of 290 points.
Bunq ranks at the bottom
The savings banks scored 6.05 out of a maximum of 10 points, securing the top position. Following closely are Deutsche Bank (5.4 points) in second place and ING (5.2) in third. The BNP Paribas subsidiary Consorsbank (5.1) is in fourth place, and the first neobank, N26 (5.0), occupies the fifth position. Among other institutions considered, Commerzbank ranks 7th (4.4), and the Volks- and Raiffeisenbanks are in 10th place (4.1). According to the Digital Banking Index, neobanks such as Revolut (3.9) and Bunq (3.4) lag far behind.
Dwindling innovation
The poor performance of neobanks is attributed by Oliver Wyman to diminishing innovation and the neglect of web offerings, while traditional banks have caught up digitally. "This reflects the consistent engagement of many traditional institutions with their digital customer offerings in recent years. Meanwhile, neobanks and, in some cases, purely digital providers have experienced a decline in app innovations and, notably, have not significantly expanded their web capabilities", states Isabel Matheja, Principal in Retail Banking & Wealth Management at Oliver Wyman
The consulting firm identifies a "web-app gap", where traditional institutions like savings banks excel in advanced online banking, while neobanks succeed mainly with apps but lack adequate web functionalities.
"Web-app gap"
The study examined institutions from eight countries, including the United Kingdom, the Netherlands, Austria, Italy, Portugal, Spain, and France. In the European comparison, Spanish institutions perform the best with a digitization score of 5.1. Austria and Portugal follow with scores of 4.8 each, then France (4.7), and Germany (4.6). The United Kingdom scores 4.4, while the Netherlands and Italy both score 4.2.
As in the 2021 index, Germany remains in the middle. "The repeated placement of German banks in the midfield can be attributed to the fact that, despite continuous improvements in recent years, there have been no major innovations and broad expansion of digital offerings to bridge the existing gap", says Matheja. The survey also assessed the status of sustainability, although the results were not taken into account in the overall evaluation. As per Oliver Wyman, sustainability is a marginal issue for most German and European banks, with only three German banks offering ESG functionalities such as a sustainable bank card.
