Your Friday fix for global fintech and payments news
The end of this week brings in the Lunar New Year and the year of the Ox. Compass Plus wishes health and prosperity to all those who are celebrating over the weekend.
This week’s news focus is on German consumers who have switched to online shopping, the reasons why UK and US consumers consider digital-only banks and the Fintech Finance Virtual Arena featuring our very own Paul Chandler, and HSBC's Brian McKenney.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- E-commerce in Germany hits new high in 2020, now worth €83.3 billion
- UK and US consumers choose digital-only banks for different reasons
- FF Virtual Arena: The future of payment platforms
Germany saw a huge increase in its e-commerce market in 2020, expanding by 14.6% when compared with 2019, according to e-commerce association, Bevh.
Interestingly, a third of all e-commerce consumers in Germany were over 60 years old – a figure that has increased from a quarter in 2019. The most popular choice of products purchased online were fashion-related, followed by media and then electronics.
As expected, the rise in uptake of purchasing goods online may have been a direct effect of the COVID-19 pandemic. Gero Furchheim, President at Bevh, said: “The corona pandemic has significantly accelerated the development of trade towards e-commerce, and our industry has fulfilled its performance promise.”
Juniper Research has found that US and UK consumers have distinct differences in their reasons for switching to digital-only banks.
According to the Digital Commerce Survey: Consumer Attitudes to Mobile Banking, mCommerce & Contactless Report, UK consumers are looking for the best rates, whereas consumers in the US are influenced by the sign-up benefits on offer. In both countries, over half of the respondents would consider digital-only when looking at switching banks, as long as they were being offered better rates or were incentivised by sign-up offers.
The survey also found that almost half of UK mobile banking users were not sure if they had ever used Open Banking, pointing to a clear educational gap that needs tending to before Open Banking becomes more successful.
Compass Plus Sales Director, Paul Chandler, spoke with Fintech Finance in their Virtual Arena alongside Brian McKenney from HSBC.
The industry leaders discussed the ‘if-it-aint-broke-don’t-fix-it’ attitude of some financial institutions, regardless of the high costs of integration and maintenance of their current platforms. They also consider the scalability of next-gen platforms and the innovation next-gen can bring to both financial institution and end consumer.
Speaking about innovation at Compass Plus, Paul Chandler said: “Our innovation with our next-gen platform enables financial institutions, PSPs, etc... to embrace what’s happening today and to do that very quickly and relatively simply, extremely cost effectively and we’re here to help them take control of that and to assist them in meeting the needs of their clients today.”
You can listen in to the Virtual Arena here.