Dutch bank Rabobank is reporting a four per cent rise in net profit for 2002, partly as a result of savings accrued from the migration of customers to direct channels.
The bank says that interest in virtual banking via the Internet and by telephone "soared" in 2002. The number of contracts for Internet banking and the Rabofoon telphone channel increased by 55% and 20% respectively. The bank now claims over 1 million online clients and recorded 1.3 million Website hits in December alone.
The savings market shows a clear shift towards saving via the Internet says the bank. The number of Rabobank's Internet savings accounts doubled to 1 million last year, representing 30% of total savings deposits compared with 21% in 2001. Savings deposited via Rabofoon on a Rabo Telespaarrekening (telephone savings account) decreased slightly, from 31% to 30%.
As expected, the Internet channel seems to be cannibalising a certain percentage of telephone transactions, particularly for more complex investment-type products. At Rabobank, the percentage of Internet securities orders grew from 32% to 40% during 2002, with a corresponding decline in orders placed via personal advisors at the branch and over the telephone. In 2002, the share of local bank advisers declined from 46% to 41% and the number of orders placed via the Rabo Orderlijn dropped from 22% to 19%.