Mastercard is partnering with more than 30 new digitised banks across Europe
9 out of 10 (88%) Brits now use online banking or banking apps, according to a Mastercard study* launched today, researching banking habits of 11 European nations. In contrast only 62% of French customers have similar digital banking access. As a nation we are also the most likely to use these digital services regularly, with 54% of us accessing them daily, again this compares with only 28% of bank customers in Italy.
The pan-European study shows that convenience was the most significant advantage for digital banking solutions, with time-saving (70%) and ease of use (59%) being the key drivers. However the UK again stood out, with safety and security being our top priority, 56% of us felt it was our number one consideration when banking digitally. In contrast, only 21% of Dutch people saw security as their priority, with 62% opting for convenience. Overall, six out of 10 Europeans welcome digital solutions and believe that the digitisation of the banking industry is making their lives easier and safer.
Today, Mastercard is a key partner in delivering digital solutions to banks, working with over 30 new providers across Europe including Monzo, Tandem, Starling, Atom, ‘B’ and Clear Bank in the UK. Mastercard is helping all of its partners develop customer-oriented, convenient and safe solutions for today and tomorrow.
The use of digital banking services has had a significant knock on effect as to the use of physical bank branches. In the UK, more than half of us have not visited a bank branch with the need of speaking to anyone in the past year. However, this is not to say our existing banks are now at a disadvantage to the new breed of digital banks starting up across the continent. Only 14% UK respondents said they would switch to a new digital bank, our existing banks are still very much the primary choice for customers. 7 out of 10 (70%) of us plan to stay with our current bank or wouldn’t consider moving to a digital bank.
By providing technological know-how, a global infrastructure, products and a worldwide network to financial institutions, Mastercard is perfectly placed to support all banks and Fintechs, as whether new or established, all players are having to navigate the industry’s digital transformation.
Javier Perez, President, Mastercard Europe, commented: “As a payments technology business we have long been focused on driving innovation at speed and scale. It is important that we don’t innovate for the sake of it but instead understand what our partners and consumers need to continue to make use of digital payments across all new devices. This study underlines that consumers want easy and secure solutions for their banking needs and are very open to digital products if they improve the experience. We are embracing this change and are proud to also be the partner of choice to Europe’s breed of new banks with our innovative, safe and secure solutions while continuing to ensure established institutions continue to build best in class tools in the increasingly digital environment.“ For a full list of Mastercard’s partners across Europe find this infographic here.
Mastercard as a leading partner for digitised banks all across Europe
The process of digitisation in the financial sector relies on partnerships, a result which is also endorsed by European consumers in the Digital Banking Study. More than 75% of the respondents in the study said they value Mastercard as a right partner for banks.
One of Mastercard’s biggest partners in mobile banking is Monzo. Launched in October 2015 in the UK, Monzo now has 250,000 cardholders. “We believe the future of finance is global and mobile.” Said Tristan Thomas, head of marketing at Monzo. “People want to be able to do everything instantly, anywhere in the world, with no hassle from their mobile. Bank branches are dying. Waiting on hold on the telephone to access your bank account is dying. Traditional banking is dying.” On working with Mastercard Tristan continued, “Mastercard have proven to be a flexible, responsive partner able to work with us as a fast growing, mobile first startup. Combining the trust and recognition of Mastercard with the innovation of Monzo has proven to be an excellent combination and we look forward to many more years working together.”
One of Mastercard’s largest pan-European partners in mobile banking is N26. Having started out in Germany, N26 is now in 17 markets and the leading mobile bank in Europe. Mastercard provides N26 with issuing and processing solutions which are essential in order to offer the product to the customer. Beyond that, Mastercard consults N26 on technical solutions regarding payment services. As one of the pioneers in the field, N26 aims at digitising all products and services traditional banks offer. “Everything we do is centered around a state-of-the-art user experience. Technology plays a vital role in achieving this goal”, says Valentin Stalf, co-founder and CEO of N26. “It was clearly a challenge to find partners who have the digital and therefore flexible infrastructure creating unique and simple user experiences. We recognized quite early that Mastercard is a dynamic player on the market, open for new products and technologies. Receiving these qualities from a renowned brand that keeps up with the newest developments, but also has a global network, is like hitting the jackpot.”
Another example is Holvi, a company which offers digital banking to micro entrepreneurs. The Finnish company started out by solving the everyday problems of self-employed people with their finance management. Furthermore, these micro entrepreneurs often had difficulties to receive appropriate support from traditional banks. With the goal in mind to become the preferred financial management service for micro entrepreneurs and small businesses in Europe, Holvi helps their customers saving time, money and running their business more effectively. Since 2016, the Holvi Business Mastercard connects directly with their service and allows Holvi’s customers to stay on top of their finances in real time. “For us it is important to work with partners who stand for trustworthiness. Our mission is to provide borderless banking to our customers in the digital era - Mastercard does not know any borders and works worldwide, just like our customers,” says Antti-Jussi Suominen, CEO at Holvi. To read the complete case studies of N26, Holvi and Monzo, please click here
*About the European Digital Banking study
The study was conducted by Innofact AG and commissioned by Mastercard. 11.915 samples were taken from eleven European markets in: Italy (1084), Germany (1081), Spain (1081), France (1088), United Kingdom (1090), Poland (1082) Netherlands (1083), Sweden (1082), Switzerland (1088), Hungary (1076) and Russia (1080). The respondents were recruited by the Innofact online panel entscheiderclub.de and its international partner panels. The respondents are aged 18 years and above.
Mastercard (NYSE: MA) is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, travelling, running a business and managing finances – easier, more secure and more efficient for everyone.