A recent study focusing on the current and emerging trends which mark the development of the e-business sector in the European Union shows that banking is one of areas currently experiencing an increased focus on the use of information and communication technology (ICT).

Data indicates that currently, over 30 percent of standard banking transactions take place via online channels, with consumers increasingly relying on the growing availability and usability of online banking services. Furthermore, data made available by German financial services provider Deutsche Bank shows that the share of online banking customers in EU-15 rose from 19 percent in 2003 to 29 percent in 2007. In this particular context, the study points out that customer data protection and e-banking security have become key aspects of the e-business sector.

The consequences of this situation are twofold: one the one hand, online banking is seen as a fast, convenient means for consumers to manage their personal finances and make payments. On the other hand, the report shows that many citizens refrain from switching from traditional banking to online banking precisely because they perceive the latter as being unsafe.

Thus, the study indicates that while online banking users are largely confident in the security measures provided by their banks, those who resist e-banking adoption base their reluctance on a general perception that e-banking is risky. E-banking uptake could therefore increase provided that the 70 percent of EU citizens who are currently reluctant to this service are provided with the best possible conditions to join e-banking. The report also shows that while banks are giving customer data security top priority among other security concerns, individual users must also undertake a series of basic security measures to ensure the safety of their internet-based transactions.

According to the report, the e-banking adoption rate at EU level shows considerable variation, with high online banking adoption levels in the Nordic countries (50-70 percent) and barely 2 percent e-banking penetration in Bulgaria.

The “European e-business Report - Impact of ICT and e-business on firms, sectors and the economy” was published by the European Commission’s Directorate-General Enterprise and Industry on 17 November 2008.