Introduction
 
Recent primary research carried out by Datamonitor indicates that the Internet is re-emerging as a priority channel for technology investments in 2005. Coming off the back of the ``dotcom gloom`` of 2001-3, banks are entering an eBanking technology renewal cycle, to improve the functionality and usability of websites as well as levels of integration with other channels.
 

 
Scope
 
Contains data from interviews with key decision-makers in 100 European retail banks
 
Includes IT spending forecasts for 2008
 
Includes coverage of all the main Western European markets
 
Highlights
 
The Internet is becoming an increasingly effective revenue generation tool, although its exact role in distribution strategy will depend on the strategic focus of the bank. Adopting a scenario-based approach to eBanking service design will be crucial in the realization of strategic objectives.
 

 
External spend will expand at a CAGR of 9.5%, reflecting increased receptiveness to vendor applications and growing demand for the services of systems integrators and professional services firms as banks seek to achieve greater cross-channel process integration.
 

 
Reasons to Purchase
 
Size your addressable market to 2008
 
Understand the key drivers behind eBanking initiatives in Europe over the next few years
 
Understand the key success factors for technology

TABLE OF CONTENTS
 
CHAPTER 1 EXECUTIVE SUMMARY 3
 
Key findings 4
 
Market context 4
 
Competitive dynamics 4
 
Market opportunity 4
 
CHAPTER 2 MARKET CONTEXT 10
 
Introduction 10
 
Key findings 11
 
Banks’ key eBanking pain points 12
 
The changing role of the Internet in distribution strategy 13
 
Strategic focus will determine the nature of eBanking services 17
 
Critical success factors 19
 
Developing a more personalized, user-friendly service to enhance revenue generation 19
 
Banks need channel-independent processes to enable a seamless multichannel customer experience 22
 
Increased end-to-end process automation is crucial for driving efficiency and STP 23
 
Implementing functionality in alignment with business focus 24
 
Taking a proactive approach to fraud prevention 24
 
Key technology implications 25
 
CHAPTER 3 COMPETITIVE DYNAMICS 30
 
Introduction 30
 
Key findings 30
 
The buy versus build debate 30
 
Vendor market segmentation 32
 
Key dynamics 33
 
eBanking / channel applications 33
 
Niche application providers 34
 
Business transformation players set for important role 35
 
Challenges and success factors for eBanking application vendors 35
 
CHAPTER 4 MARKET OPPORTUNITY 38
 
Introduction 38
 
Key findings 38
 
Italy and the Nordics the fastest-growing markets as the UK slows 39
 
Buoyant growth in external spend, but internal spend will remain significant as banks seek component-based channel architectures 41
 
CHAPTER 5 APPENDIX 43
 
Definitions 43
 
Abbreviations 43
 
Future readings 44
 
SPP writing team 44
 

 
LIST OF TABLES
 
Table 1: European eBanking technology spending, 2004-2008, by country 41
 
Table 2: European eBanking technology spending, 2004-2008, by source 43
 

 

 
LIST OF FIGURES
 
Figure 1: eBanking is a top 3 investment priority for European banks in 2005 11
 
Figure 2: Touch correlates broadly with satisfaction 15
 
Figure 3: Comparative capabilities of retail banking distribution channels 16
 
Figure 4: European eBanking business models and strategic priorities 18
 
Figure 5: Designing a “scenario-based” approach to eBanking 21
 
Figure 6: Shorter processes result in higher completion rates 23
 
Figure 7: eBanking is the focus of channel investments for banks 25
 
Figure 8: Process-centric multichannel architecture 28
 
Figure 9: Summary of banks’ primary eBanking technology requirements 29
 
Figure 10: eBanking technology vendor “stack” featuring selected vendors 32
 
Figure 11: eBanking / multichannel solution development timeline 33
 
Figure 12: Convergence in the eBanking / multichannel application space 34
 
Figure 13: European eBanking technology spending, 2004-2008, by country 39
 
Figure 14: European eBanking technology spending, 2004-2008, by source 41