27/01/2010 - Online payment preference in the UK

Online banking data shows significant regional opportunities

Just before the end of 2009, the Payments council released an interesting press release describing the regional variances that exist over payment preferences. Their data covers all payment types and makes interesting reading.

One of the neat tools is the Interactive online map which is certainly worth playing with, but it is the Internet statistics in particular which are of interest:

• If you live in the South East you are most likely to use phone or internet banking 59% compared to the lowest scoring region North East at 46%. The UK average coming in at 53%.
• The highest percentage of online or phone bill payers were also in the South East ,50% whilst the fewest were in London at a miserly 38%. The UK average being 44%.
• There is a “trust” gap between users and bill payers of around 9% for the UK overall. Interestingly this masks some starker West coast East coast differences. Wales and its bordering regions all have a double digit (11%) declines between users and payers whilst the North East, Yorkshire and Humberside and East Anglia have half that decline at 6% fewer bill payers.
• More generally in respect of the Internet the most active online shoppers live in Wales and Yorkshire and Humberside with around 20 online purchases a year with the least active coming from East Anglia at per annum. The average is 16.
• A quick review of available regional growth statistics for Internet Banking usage shows highs of 7% and lows of -4%. This seems very much to confirm the maturity of Internet Banking and the importance of increasing self service use.

Looking at the regionally focused statistics it would be easy to make the mistake of missing some seriously useful information that is contained within them.

Whilst the UK market does appear mature and slow growth; some international comparisons will sharpen the mind in terms of potential. Germany the leading north European country in online banking has a 73% instance of bill paying, Sweden 68% and the Netherlands 61%. All lead the UK’s 44% by substantial margins

As online payments give bankers significant cost savings not available elsewhere, the gap between the UK and the other North European countries is not one that can be ignored. Thus the continuing challenge for UK banks must be to continue to work on convincing consumers that online bill payments really are the way forward.


Should you be interested in either discussing the article, or be interested in Mapa’s services, please feel free to email me on mark@mapa-uk.com

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