The document provides an overview and analysis of the digital offerings of major retail banks in Luxembourg based on a benchmarking study conducted by Deloitte. The study evaluated 10 retail banks across 5 dimensions (onboarding, content/functionalities, design/ergonomics, navigation, and safety/security) and identified 3 groups of performers: leaders, medium performers, and clear sub-performers. While leaders demonstrated some best practices, all banks can still improve the customer experience and drive efficiency through digital. The benchmark highlights areas for improvement such as streamlining the onboarding process, increasing the use of digital channels to lower costs, providing customized and targeted digital content, and adopting innovative strategies from global leaders.

1. Deloitte Luxembourg
Digital Banking Benchmark
Improving the digital
performance

2. Contents
Executive summary 3
Retail banks in focus 4
Banks face a changing environment 6
Retail banks analysis 8
The Digital Banking benchmark results 10
Content and functionalities 12
Safety and security 16
Design and ergonomics 17
Navigation 18
Onboarding process 19
Mobile and tablet applications 20
Markets outside of Luxembourg 22
Conclusion 23
2

3. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 3
Executive summary
Getting digital is one way to embrace both objectives,
ensuring higher efficiency in some processes (e.g.
onboarding, credit offering, etc.) and improved
interaction and customer experience. To reap maximum
advantages, banks will need to provide above-average
performance.
The Deloitte Luxembourg Digital Banking Benchmark
provides an overview of the digital offering of the main
retail banks in Luxembourg. It provides banks with a
better understanding of their own digital performance
across five key dimensions (onboarding, content and
functionalities, design and ergonomics, navigation,
and safety and security) and 140 detailed criteria.
The benchmark identifies three types of digital
performers in Luxembourg: (1) Luxembourg leaders
(2) medium performers and (3) clear sub-performers:
1. The leading group of banks exhibits a number
of best practices regarding digital performance.
However, it lags behind some international
universal and retail banks, who have put customer-
centricity and tech savviness at the core of their
strategy to provide exceptional customer service
and drive their own efficiency (examples include
BBVA, Barclays, Bank of America, Citi, and
Umpqua Bank).
2. Medium performers offer a well-crafted basic
digital banking offering, including most basic
functionalities, such as balance consultation,
transaction history and basic money movement,
but lack some of the added-value functionalities
provided by leading banks, such as quick transfers,
investment management, and information on
insurance products.
3. The group of sub-performers does not fulfil all
basic requirements defined for a digital banking
offer and should react quickly in order to catch up
with the rest of the market.
In an increasingly connected and competitive world,
where rising customer expectations in terms of service
offering, user experience, and connectivity, etc., as well
as increasing operating, IT, and regulatory costs affect
banks, they need to find new ways to become more
efficient and provide a better customer experience.

4. 4
In order to improve their digital performance
and derive full benefit from an elaborated
digital strategy, we suggest the following
action points for banks in Luxembourg:
All actors
should improve the onboarding
process for all types of onboarding
approach (brick-and-mortar, brick-
and-click, and pure click) by
reducing complexity and the
effort required.
1 All banks
should increase their use of digital to drive
process efficiency. Encouraging customers
to choose interactive self-service channels,
especially for simple tasks, allows banks to free
resources for more value-added operations
and to compete more efficiently with agile
new entrants, who have constructed their
business model around digital.
2
Retail banks in focus

5. Mass-customization
will drive banking in the future. Banks should segment
customers to ensure targeted content and provide a
customizable online offer, which will propel improvements
in customer experience and an enhanced feeling of
safety and security. Using digital analytics to obtain a
360-degree view of their customers will help banks to
understand customers’ needs and to respond to them.
3
Luxembourg leaders
should look at adopting truly innovative tactics by
looking at best practices from abroad to strengthen
and protect their leading position. Banks belonging
to international groups in particular should look
towards capitalizing on group investments when
developing their digital strategy.
4
Medium performers
should increase the number of
value-added functionalities provided
to improve customer experience.5
Sub-performers
should ensure that basic
“must-have” functionalities
are provided.6
5

6. 6
Key trends, such as changing customer demographics,
the emergence of non-traditional competitors,
increasing regulatory requirements, and pressure on
fees are changing the competitive environment in
which banks operate. Banks have to serve current, but
also new types of customers with new and evolving
requirements and expectations in an ever changing and
regulated environment, all the while competing with
existing and new actors. To respond to these trends and
to create a sustainable competitive position, banks need
to optimize their digital performance.
The 21st
century customer: connected, with rising
expectations and decreasing loyalty, expecting
a top-notch digital customer experience
Generation X and Y represent key consumer groups
for banks in the 21st
century. Living in a world, where
online and mobile are key commodities in all aspects of
life, digital channels become essential means to carrying
out banking operations. In Luxembourg, we estimate
that 75 percent of people currently use online banking1
and 45 percent2
use mobile banking. Furthermore, in
five years’ time, it is likely that mobile banking will have
caught up with internet banking3
.
The new generation of customers requires banks
to change their business models. The 21st
century
customer has high expectations in terms of service,
interaction, and experience. Less loyal to their banking
partners than previous generations, these customers
are ready to switch banks at any time if provided with
what they consider to be a better offer (better product,
pricing, service, or a better online or mobile application,
etc.).
Traditional banking business models focused
investments in customer experience on the few
“moments of truth” in the customer lifecycle; capturing
the customer, locking the customer in, and maintaining
rare contact with the customer. Customer contact
occurred only a few times per year when customers had
exceptional requests, such as for a new house, a new
car, or a new insurance policy. Through digital channels
however, the 21st
century customer interacts with the
bank on an almost daily basis, increasing the “moments
of truth”.
Banks face a changing
environment
A sustainable business model for the future will use
digital to drive operational efficiency and improve
customer experience.
1 Statista, 2014
2, 3 Deloitte Analysis
Figure 1: Current use of online and mobile banking in Luxembourg
45%Use mobile banking
in Luxembourg
75%Use online banking
in Luxembourg

7. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 7
If banks want to retain these customers—as well as
attract new ones—they will need to change their
business models and provide a top-notch customer
experience at each one of these “moments of truth”,
on a daily basis. The high expectations that 21st
century
customers have of their bank are shown in Figure 2.
Non-traditional entrants, pressure on fees, and
increasing regulation are further market trends
requiring banks to rethink their strategy
Reacting to changing customers, non-traditional market
entrants successfully enter markets historically dominated
by banks. Banks’ new competitors, including Google
Wallet, CurrencyFair, and Kickstarter, provide services
ranging from payment to financing solutions. Built
around a digital offering, with more agile structures than
banks, and an abundance of customer behavior data
at their fingertips, they revolutionize digital customer
experience and democratize traditional banking
strongholds and revenue sources.
In Luxembourg, the current digital offering still leaves
much room for improvement in terms of efficiency and
customer experience. A number of trivial tasks, including
opening an account, changing the name of the account,
or grouping accounts, are complicated online, and
almost impossible without visiting a branch in person.
The Digital Banking Benchmark evaluates the
performance of banks in Luxembourg regarding
customer experience and efficiency in key areas,
highlights deficiencies, and provides suggestions for
improvement in banks’ digital strategies.
Figure 2: The 21st
century customer has high expectations from banks
Convenience
Banking - anyway,
anyhow, anytime
Control
Control personal
finances - supported
by digital
tools
Consistency
Experience a seamless
transition - across all
channels
Convergence
Channels and devices
used for banking
converge
Collaboration
Communicate and
exchange - in
real time
Customization
Tailored solutions -
centred around
“me”

8. 8
Figure 3: Survey methodology
5dimensions
About 10retail banks
Retail banks are evaluated on five dimensions analyzing
bank performance along digital touchpoints of the
customer journey.
The survey provides a detailed analysis of the key aspects of digital banking, including public websites,
customer websites, mobile websites, and applications of retail banks in Luxembourg:
Onboarding
process
(5 criteria)
This dimension analyzes levels of automation, responsiveness, service, and
administrative documentation and requirements during the onboarding process
Content and
functionalities
(90 criteria)
An in-depth analysis of “must-have” functionalities, as well as differentiating
“added-value” functionalities
Design and
ergonomics
(28 criteria)
The design of the digital offering should optimize usability, user experience,
and ergonomics
Navigation
(11 criteria)
Information should be easy to find and readily available, navigation between
public and customer websites and applications should be seamless
Safety and
security
(12 criteria)
Money security is frequently the most important aspect for customers,
but additional protection regarding privacy and safety is important
Retail banks analysis

9. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 9
Banks criteria:
0—does not satisfy this criterion, 1—below average, 2—average,
3—higher than average, 4—leading
140criteria rated from 0-4
Above
average
Average
Below
average
Not
satisfactory
Leading
Rating Criteria
4
3
2
1
0
The possible rating for each criterion
ranges from 0 to 4, with 0 representing an
unsatisfactory performance and 4 representing
a leading performance4
. A weighted compilation
of performance on criteria provides an overall
ranking of each bank analyzed, and highlights
where differences exist. In order to provide
suggestions for improvement, best practices
from markets abroad are put forward to
illustrate potential paths of improvement for
Luxembourg banks.
By rating the performance of about 10 key banks in Luxembourg across
5 dimensions, and more than 140 criteria selected to reflect key components
contributing to optimal customer experience and efficiency, the survey
enables a fair comparison of banks.

10. The Digital Banking
benchmark results
Overall, banks can be classified into three types
of digital performers: Luxembourg leaders, medium
performers and sub-performers.
1. Luxembourg leaders
A third of the banks in our sample belong to the
group of Luxembourg Leaders in terms of their
digital offering
These banks offered the best combination of online
and mobile capabilities in Luxembourg by combining
“must-have” and advanced features and making it easy
to navigate their online website, with simple account
balance visualizations, sophisticated transaction
history search functions, and a visually stimulating
environment, as well as fulfilling the required safety and
security standards. Nevertheless, they only scored 68
percent of possible points in our benchmark, indicating
that there is still room for improvement for these banks.
• One of these banks’ secure sites stands out in
particular for its range of sophisticated secure
site features, such as making money movement
particularly easy with a quick transaction option,
offering customers an accurate spending
categorization, and even displaying information
on insurance products
• In addition, two banks analyzed provide a well-
integrated investment management platform and
the possibility to switch easily to paperless for all
products and accounts
• Lastly, these banks provide customers with
information in a transparent way. Information on
products and their respective pricing can be found
easily and is easy to understand
Luxembourg
leaders
Distribution of Luxembourg banks' digital performance
68%
33%
40%
33%
58%
33%
Percentage of maximum possible score achieved on average
by banks in each group
Medium
performers
Sub
performers
Figure 4
10

11. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 11
2. Medium performers
Banks in the medium performer group lag behind
competitors, but they can catch up
Less mature digitally than Luxembourg leaders,
the medium performers nevertheless offer a solid
performance on multiple criteria. By making only a few
small changes, these banks could quickly catch up with
the leading banks.
• They provide the typical basic functionalities
and content required by banks, such as balance
consultation, transaction history, etc., but fewer
value-added functionalities than the leading
competitors. Examples of such value-added
functionalities are online investment management
platforms and quick transfers
• Banks in the medium performance group
have relative strengths. Certain banks perform
particularly well regarding customer service and
assistance while others have above-average
performance concerning digital alerts, allowing
customers to set-up personalized digital alerts
3. Sub-performers
Adapting the digital offering would allow banks
in the sub-performing group to improve customer
experience and process efficiency
In the sub-performing group, we note that some
functionalities required by customers to carry out their
basic day-to-day banking operations are missing and
value-added functionalities are limited.
• The missing standard functionalities could
hamper customer experience. Although certain
operations are easily available online with their
bank’s competitors, customers need to contact
their branch through another channel to carry out
the same operation. This keeps customers offline
and in-branch, rather than drawing them towards
digital channels
• The lack in automation reduces potential efficiency
gains, as well as benefits to customer experience.
Increasing efficiency should be a key consideration
for sub-performers, in order to reduce the cost
base and to focus resources on higher value-added
functionalities
• Regarding security, actors in this group offer the
most limited standards and there is little innovation
regarding features and navigation
Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 11

12. 12
Onboarding is a key touchpoint in the customer journey
with banks—both online and offline. Responsiveness,
user-friendliness, and efficiency of the process are
essential factors that determine whether the bank can
gain new customers or not. Digital channels provide
a unique opportunity for banks to serve customers
quickly, efficiently, and in the most convenient way
possible, while freeing resources to focus on more
value-added tasks.
The Digital Banking Benchmark shows that banks
in Luxembourg are not taking advantage of these
opportunities and keeping customers in-branch:
• None of the banks analyzed allow the customer
to open an account end-to-end online. Although
more than half of the banks allow accounts to be
opened online in theory, at least a minimal amount
of branch intervention is necessary (i.e., sending
documents by post to the bank)
• The process of opening an account is extremely
lengthy and complicated. The requirement
for customers to post documents in particular
demands significant effort from them.
Furthermore, certain banks even have stricter
requirements for online account opening than for
offline account openings (e.g. minimum deposits)
• A third of banks analyzed do not offer any
possibility of opening basic accounts online or
subscribing to online services
• Overall, it is currently easier for customers to open
bank accounts by visiting the brick-and-mortar
branch than through online channels. This is in
stark contrast to new entrants, such as PayPal,
who offer an end-to-end online process
Customer preferences regarding onboarding and
account opening are likely to continue to vary between
pure brick-and-mortar, online, and brick-and-click
models. As customized service has become a key
requirement for customers, banks—which will be able
to cater to the needs of each customer type—will be
able to position themselves for success.
However, in order to deliver a true competitive edge
through digital, a bank will need to go further and
address key industry trends.
Examples of trends currently affecting
the industry are:
• Digital branch delivery: omnichannel and the
deployment of digital within physical branches will
reshape customer interaction, create an improved
customer experience, and drive efficiency by freeing
resources. Examples of digital delivery within
branches include the use of tablets to drive customer
service within the branch, “digital walls” that
provide information and inspiration to customers,
and paperless receipts, which reduce paper waste.
• Innovating identity verification: simplified online
identity verification processes for account opening
will improve customer experience for both
“pure-click” and “click-and-brick” customers.
Onboarding process: complicated processes and low
user-friendliness characterize a decisive customer
touchpoint for most banks.
Figure 5: Possibility to open
a bank account in Luxembourg
67%Online account opening
possible, with some
branch intervention
33%Online account
opening not
possible

13. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 13
Content and functionalities: the majority of banks
offer basic online functionalities, but only a few of
them are able to differentiate themselves by offering
value-added services.
It is possible to differentiate between two main types of online content and functionalities: basic content
functionalities and value-added content and functionalities. Basic functionalities are required in order to avoid
dissatisfaction, but are unlikely to positively affect customer experience in a meaningful way. Value-added content
and functionalities, in contrast, will contribute strongly towards a positive customer experience. The figure below
shows the different categories of functionalities, as well as the number of banks that provide these functionalities.
Complete information on day-to-day account and products
Information on prices
Consultation of account balances
Carrying out transfers and payments
Carrying out internal bank transfers
Carrying out European bank transfers
Carrying out international bank transfers (outside EU)
Consultation of the limit of debit card
Consultation of historical data of credit card
Consultation of the limit of credit card
Modification of the limit of debit card
Modification of the limit of credit card
Secure mail box
Communication with an advisor
100%
Complete information on insurance products
Consultation and printing statements
Currency converter
Current account opening
Ordering a new debit card
Ordering a new credit card
Booking in-branch appointments
Invesments in bonds
83,3%
Overview of specific products (e.g. for young people)
Complete information on savings and investments
Complete information regarding loans and financing
Frequently Asked Questions (FAQ) section
Consultation of standing orders
eStatements
Carrying out standing orders with a fixed amount
Ordering currencies
Modification of standing orders
Canceling of standing orders
Assistance service
Consultation of personal investment portfolio
Investments in stocks
Investments in funds
83,3% 66,6%66,6%
Figure 6: Basic functionalities offered by all leading and the majority
of medium performers

14. 14
50%50%
Stock markets accessibility
Financial and economic news
Online-questionnaire on investment profiles (MIFID)
Securities account opening
Account personalization
Setting up a custom budget or a savings goal
Calculation of interests on loans
Investments in commodities
Dedicated online branch
Marketing for additional banking products
User's spending categorization and analysis
Deposit account opening
Savings account opening
Quick payments
Setting digital alerts
Investments in structured products (e.g. options)
Simulation of investment activities
Complete information on his insurance contracts
Blocking debit card easily
Investment advices
33,3%33,3%
16,6%16,6%
P2P (pure web-based, not mobile)
Tax calculator
Savings pensions account opening
Carrying out standing orders with a variable amount
Modification of person holding a proxy on the account
Grouping accounts
Innovative ways of investing solutions (e.g. crowdfunding)
eBills
Safe-deposit box
Simulation of insurances
Proactive online chat
Ongoing 24/7 help desk
Investment in a virtual stock market platform
0%
Figure 7: Value-added functionalities currently mainly offered
by leaders and some medium performers
Figure 8: Value-added functionalities offered by banks abroad
but not in Luxembourg

15. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 15
Besides the pure provision of services, the quality of the
content and functionalities is also essential. Visitors to
public websites mainly search for information; complete
and understandable information regarding products
and pricing is therefore the key content for public
websites. While product information is exhaustive
and comprehensible for most banks, some banks
underperform regarding the provision of standard
information on products. It will very soon become
necessary to increase the amount of information
available to potential customers. Some banks’
performance was insufficient regarding the provision of
information in their Frequently Asked Questions section.
As the figure above shows, most banks provide
“basic” functionalities relative to day-to-day account
management, such as checking account balances,
initiating transfers and payments, consulting and
printing account statements, ordering currencies, or
providing their customers with a secured mailbox.
Concerning the quality of these services, however, only
half of the banks analyzed offer a truly satisfactory
performance regarding standard functionalities.
Furthermore, even fewer banks are able to differentiate
themselves from competitors by providing high quality,
high value-added digital functionalities for consumers
(e.g., online branch, cataloguing and spending analysis,
simulation and conversion, or investment tools). One
third of banks underperform regarding the content
and functionalities of their online offering.
A positive observation of the benchmark is that banks in
Luxembourg are taking advantage of digital possibilities
to streamline their regulatory procedures (50 percent of
banks have online questionnaires for MiFID II).
Foreign banks exhibit practices that go significantly
beyond the current offering in Luxembourg in terms
of online content and functionalities. Some clear
examples of best practices that banks abroad are
currently applying include:
• Providing P2P payments through social media
(e.g., transferring money to Facebook friends)
• Providing customers with innovative and alternative
investment opportunities, such as crowdinvesting,
which allow the personalization of investments and
cater to the needs of particular groups of investors
(e.g. micro investors)
• Providing video assistance and video banking
services to customers builds a strong personal
relationship with customers through digital channels
• Providing e-bill services improves convenience for
customers
Use online to support regulatory
procedures
%
5
Figure 9
While product information
is exhaustive and
comprehensible for most
banks, some banks
underperform regarding
the provision of standard
information on products

16. 16
The level of available functionalities varies between
basic/standard packages and premium online
banking packages: most functionalities are included
in free, standard online banking packages and in
order to charge premium fees, banks increasingly
offer customizable packages
Most banks abroad offer a good quality basic digital
package for free. Indeed, only small differences between
the functionalities included in the basic and premium
packages exist. As basic packages are increasingly subject
to pressure on fees, banks add certain functionalities to
premium packages to charge higher prices.
Unfortunately, many of the functionalities contained
in these packages, such as credit cards that are free
of charge or financial analysis, are likely to become
commodities as more and more banks include them
in basic packages. To continue charging for premium
products, banks will need to review customer
segmentation and add appropriate new, innovative
premium functionalities, for which customers will be
willing to pay premium fees.
15 key functionalities are must-have components
of a basic banking package:
• 11 main features are offered for free by all banks
in their basic package
• 4 other banking activities are covered by 5 out
of 6 banks
Six added functionalities are not currently part of
the basic offering for all banks and can be classified
as premium features, for which customers are willing
to pay. However, as these functionalities are included
in the basic packages of competitors, they are likely to
become commodities in the future.
• Some banks propose customized solutions to meet
personal banking needs in this context. These
customized solutions address the precise needs of
consumers and provide maximum service tailored
to expectations—at a price.
• Banks will therefore need to provide new solutions
for which customers will be willing to pay.
Figure 10: Standard vs. Premium package functionalities
100%
100%
100%
100%
100%
100%
100%
Open current, savings and deposit accounts
Consult and manage accounts
Initiate transfers and payments
Withdraw money from internal ATMs
Secure mail box
Download mobile application
Consult and modify debit and credit cards
Basic functionalities Premium functionalities
100%
100%
100%
100%
Information on financial products
Tools and help through a dedicated online branch
Locate bank branches and ATMs
83%
83%
Take out a loan
Order currencies
Out of scope for 1 bank
Guarantee a level of optimal security
33%
Generate and print financial statements
Invest in financial products and funds
Financial analysis
67%
67%
100%
33%Credit cards (Visa, MasterCard)
83%
83%
Withdraw money from external ATMs
Investment advice
Insurance services
Financial simulators & calculators
83%
83%
50%
33%

17. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 17
The differences observed between competitors with
regard to design and ergonomics are less significant
than for other dimensions. All banks offer good
performance regarding compatibility with different
browsers, consistency of the website across different
pages, transitions between public and customer sites,
and prefilling known customer information.
Certain characteristics nevertheless allow some banks
to differentiate themselves from competitors on the
basis of design and ergonomics. Specifically, elements
allowing customers to personalize their online banking
tool, such as the provision of the website in an
additional language (e.g. Dutch, Portuguese), cross-
selling based on customer preferences, or the possibility
to set up personalized digital alerts are strong points for
some banks. We suggest that further elements allowing
customers to set personal preferences could increase
customer experience. One example of allowing further
personalization would be to allow customers to define
the preferred font size in their personal space.
These practices are a basic service for banks abroad.
If implemented systematically, they will significantly
improve customer experience, and render banking more
enjoyable for customers while maximizing efficiency.
Design and ergonomics: low differentiation between
competitors with regards to design and ergonomics for
Luxembourg banks—a little effort will go a long way.
100%
100%
100%
100%
100%
Browsers compatibility
Consistency
Seamless transition from the public to the customer website
Saving contacts of frequent recipients
Known user information prefilling
Website available in English, French and German
Website available in other foreign languages
Offering online Not offering online
Setting frequency preferences for digital alerts
Events calendar participation
Cross-selling depending on customer profiles
83%
33%
33%
16%
0%
Possibility to go paperless for all products and accounts
50%
Figure 11: Percentage of banks offering the
functionalities relative to design and ergonomy

18. 18
100%
100%
66%
0%
83%
50%
Customer service options centralized in a single screen
Facility to find a past transaction
Facility to find information regarding specific products
Facility to find information on pricing
Keyword search for customer website
Keyword search for public website
Money management tools integrated with everyday online banking tools
83%
Offering online Not offering online
Not all customer groups are the same and banks will
need to have this in mind when designing navigation
of their digital tools. Segmenting customer groups to
provide targeted, customized content will facilitate
navigation. A key aspect in this context will be the
landing page.
For customers and potential customers, the landing
page represents the first contact with the bank.
Any subsequent navigation and redirection should
be simple and user friendly:
• One bank provided a landing page experience
that was significantly superior to its competitors,
by asking customers to attribute themselves to
a customer segment in order to display relevant
information
• Other competitors did not segment customers
before displaying content. The user is subsequently
faced with a more complex navigation interface
that displays obsolete navigation links
• Segmenting customers will not only facilitate
navigation, but also enable targeted product
placement, thus increasing the likelihood of
further sales
Secondly, transparency towards the customer becomes
increasingly important from a customer experience and
regulatory point of view. It is essential that information
on products and pricing is easily available. For the
majority of banks, information regarding products and
pricing can be found relatively easily once the relevant
part of websites has been found.
Nevertheless, for certain banks, we observe
deficiencies:
• Two banks provide very little information on
pricing and products and one bank only provides
information on pricing in French
• An increase in transparency by providing complete
information on products and pricing, which is easily
accessible in all commonly used languages, would
significantly improve customer experience for these
banks
Lastly, we observed that, astonishingly, certain banks
did not offer a search facility. This is a significant deficit
compared with competitors in terms of navigation
usability.
Navigation: segmenting customer groups and adapting
content to segments will allow easy navigation for
customers.
Figure 12: Percentage of banks
offering the functionalities relative to navigation

19. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 19
Safety and security: backed by strong regulatory
requirements, security performance is good overall.
The level of information security capabilities offered by
the websites of the major retail banks in Luxembourg is
good overall, backed by strong regulatory requirements
such as the CSSF circular 15/603 enforcing guidelines
from the European Banking Authority.
The usage of strong authentication is widespread
(all the banks surveyed support token authentication),
while 66 percent of them even offer their customers the
choice to authenticate themselves either with a token,
a smartcard, or a specific USB device (“signing stick”).
However, more than 60 percent of banks do not use
extended validation certificates, which are generally
used to give consumers confidence and build trust in
e-commerce (based on a third-party verification using a
highly visual display in the customer’s web browser).
We noticed that most of the security controls
implemented on the mobile applications can be
considered as adaptive. While strong authentication is
always required to consult the banking website, most
of the mobile applications surveyed require a token
100%
100%
100%
83%
83%
Website available in HTTPS
Security and privacy information easy to understand
Strong authentication requirements for connecting customer accounts
Timeout after a certain period of inactivity
Strong authentication requirement for paiments
66%
50%
Strong authentication requirements for external beneficiary
Possibility to disabile payment functionality
33%
Website secured by an extended validation certificate
Stock markets accessibility
ed functionalities currently mainly offered by leaders and some medium performers
Information on prices
Consultation of account balances
Carrying out transfers and payments
Carrying out internal bank transfers
Carrying out European bank transfers
out international bank transfers (outside EU)
Consultation of the limit of debit card
Consultation of historical data of credit card
Consultation of the limit of credit card
Modification of the limit of debit card
Modification of the limit of credit card
Secure mail box
Communication with an advisor
w of specific products (e.g. for young people)
plete information on savings and investments
te information regarding loans and financing
Frequently Asked Questions (FAQ) section
Consultation of standing orders
eStatements
ying out standing orders with a fixed amount
Ordering currencies
Modification of standing orders
Canceling of standing orders
Assistance service
Consultation of personal investment portfolio
Investments in stocks
Investments in funds
Complete information on insurance products
Consultation and printing statements
Currency converter
Current account opening
Ordering a new debit card
Ordering a new credit card
Booking in-branch appointments
Invesments in bonds
Stock markets accessibility
ed functionalities currently mainly offered by leaders and some medium performers
Information on prices
Consultation of account balances
Carrying out transfers and payments
Carrying out internal bank transfers
Carrying out European bank transfers
out international bank transfers (outside EU)
Consultation of the limit of debit card
Consultation of historical data of credit card
Consultation of the limit of credit card
Modification of the limit of debit card
Modification of the limit of credit card
Secure mail box
Communication with an advisor
w of specific products (e.g. for young people)
plete information on savings and investments
te information regarding loans and financing
Frequently Asked Questions (FAQ) section
Consultation of standing orders
eStatements
ying out standing orders with a fixed amount
Ordering currencies
Modification of standing orders
Canceling of standing orders
Assistance service
Consultation of personal investment portfolio
Investments in stocks
Investments in funds
Complete information on insurance products
Consultation and printing statements
Currency converter
Current account opening
Ordering a new debit card
Ordering a new credit card
Booking in-branch appointments
Invesments in bonds
Offering online Not offering online
Figure 13: Level of security provided by retail banks in Luxembourg
authentication only during initial use and for sensitive
operations (such as adding an external beneficiary).
Once registered, the user generally only needs a basic
PIN code for “low-risk” operations.
On the security awareness side, all websites offer at
least a minimum of information and guidance in order
to inform their customers of how to behave safely while
using online banking services.
One area of improvement identified for the coming
years is the ability to have advanced fraud detection
mechanisms and the possibility to define personalized
security preferences and alerts. In any case, to be
widely accepted and efficient, any security controls
introduced should remain as transparent as possible
and avoid hampering user experience.
Internationally, we observe a key trend towards the
adoption of diversified biometric security. Finger print
technology on smartphones, as well as finger vein
recognition and facial recognition are some examples
of the biometric tools introduced by international
innovation leaders.

20. 20
Mobile and tablets have become a part of consumers’
daily life. Banks are trying to meet the needs of almost
half of the population, who use online banking, by
providing appropriate applications. Once a value-added
innovative service, applications have now become
a commodity, expected by consumers, and offered
free of charge by all banks. However, differences exist
concerning the availability and quality of services.
The availability of applications reflects the popularity
of different operating systems. For standard operating
software, such as IOS and Android, most retail banks
offer applications, for both mobile and tablet. For less
popular operating systems, such as Windows for phone
or BlackBerry OS, fewer applications exist.
• All banks have applications for IOS
• The majority of banks have applications for Android
• Only one third of banks have applications for
Windows
• The availability of applications for Blackberry is
very limited. Less than 1/5th
of banks offer an
application for this operating system
Overall, most applications allow customers to engage in
day-to-day management of their accounts from their
mobile phone or tablet. The content and functionalities
of the applications are aligned with the ones offered by
the website solution.
100%
83%
33%
17%
AndroidiOS BlackberryWindows
Luxembourg
leaders
75%
Sub
performers40%
Medium
performers
50%
Figure 14: Availability of mobile applications
across different operating systems
Figure 15: Percentage of maximum score
achieved on average by banks in each group
Mobile and tablet applications
Improvements can be made by providing an integrated
solution with more value-added functionalities.

21. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 21
As in the case of the website solutions, few banks
provide their customers with innovative, value-
added functionalities, such as digital payments or
P2P transfers. The leading banks can differentiate
themselves from competitors by adding some of
these value-added functionalities. Examples of such
value-added functionalities include mobile wallet
functionalities, P2P transfers through Digicash, or
simulation activities.
Figure 16 shows the performance of selected
applications across four dimensions.
However, there is still room for improvement
regarding the mobile offering of banks in
Luxembourg:
• The mobile applications currently offer very
limited investment management possibilities.
Only one application truly permits users to visualize
and manage investments from a mobile phone.
Improvements in this area could significantly
improve customer experience.
• A number of banks have several applications that
run in parallel. For users, this creates confusion
and reduces user comfort as customer experience
satisfaction is driven by having a seamless
experience.
Outside of Luxembourg, mobile channels are the focus
for customer-centric innovation. Some examples of
market-leading innovation observed abroad are:
• Linking social media and banking applications
International competitors are increasingly linking
banking applications to social media applications,
with examples including allowing access to banking
applications via Facebook or P2P transfers
• Including consumers in banking application
development
Drawing inspiration from an increasingly
collaborative economy, one leading bank has
launched a mobile banking challenge asking
developers around the world to contribute their
ideas and offer input regarding how mobile
banking should be in the future
Figure 16: Performance of selected actors in the Luxembourg
banking sector regarding mobile banking
Content &
functionalities
Design &
ergonomics
Navigation Safety &
security
Actor 6
Actor 5
Actor 4
Actor 3
Actor 2
Actor 1
The leading banks can differentiate
themselves from competitors by
adding some value-added
functionalities

22. 22
Markets outside of Luxembourg are significantly more
mature digitally. Adopting best practices will drive
digital efficiency and customer experience in the future.
Mass customization and personalization
Providing features to personalize the online experience
has become an essential component of digital
strategy abroad. Examples of personalization in the
banking industry are: allowing customers to choose
nicknames for accounts and customize landing pages
for customers’ profiles, and cross-selling based on
customer analytics.
Reinventing customer assistance and driving efficiency
through measures such as P2P-support or 24/7 chat
Customer assistance models based on P2P support (e.g.,
a bank offers users a financial incentive to create user-
help videos on YouTube) provide a revolutionary user
experience and drive efficiency by reducing costs for
the bank significantly. For more specific queries, a 24/7
direct help desk through online chat can be an effective
way to provide human help and expertise when and
where customers need it.
Human proximity in online assistance and product
promotion through secure video banking
Some banks have re-imagined the 'branch of the
future' concept with the launch of a purely video-based
channel connecting customers on mobiles and desktops
to staff representatives for face-to-face sales in order to
promote banking products.
Two-way video banking gives customers the confidence
to complete more high-value banking activities without
the inconvenience of visiting a branch, as well as
offering personalized service.
Markets outside
of Luxembourg
Electronic bill system
E-bills is a banking service that enables bill to be
paid and exchanged to documents such as invoices,
credit notes and pay slips to be generated quickly and
easily. It is no longer necessary to manually input the
payment because the transfer form is pre-filled and
then approved or rejected. Embedding those tools is a
significant opportunity for improvement in Luxembourg.
Putting digital innovation and reinvention
at the heart of strategy
Digital leaders in digitally mature markets fight
disruptive new entrants by copying innovative
companies and investing in innovation from within or
promising FinTech startups. From grassroots models
within business units to venture funds owned by banks,
digitally leading banks, such as BBVA or Citi, have
developed different strategies and adapted their entire
structure to ensure that they remain at the cutting
edge of technology.
Other leading banks reinforce the role of the CINO
(Chief Innovation Officer) and hire digital executives
to ensure that digital channels are at the core of their
strategy.
As digital banking is less mature in Luxembourg than abroad, we suggest that banks look at digital best
practices from abroad to adapt their offering. In this context, banks belonging to larger groups may be able
to capitalize on group investments. Some examples of best practices offered abroad are:

23. Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 23
Conclusion
The current economic situation leaves no doubt
that the banking business has to change and
become more efficient. Customers demand
better pricing and service while banks face
increasing costs. The question to be asked
when talking about digital strategy is no longer
“Should I?”, but rather “How will I?”
The results of the benchmark highlight this
and show that banks are investing in their
digital offering. The degrees of digital maturity
exhibited by banks in Luxembourg vary. While
the group of leading banks is starting to reap
the benefits of a digital strategy in terms of
customer experience, other banks are only just
embarking on their digital journey.
For all, however, there are still large gains to
be captured in terms of operational efficiency
and customer experience by understanding
own performance, as well as understanding
customer requirements and by looking beyond
Luxembourg’s borders to more mature markets.
As banks embark on their digital journey, they
will have the possibility to take advantage of
the opportunities that digital provides in terms
of customer experience and efficiency. Daunting
as it may be, embracing digital has become
inevitable, and banks can only benefit by taking
the plunge.
Deloitte Luxembourg Digital Banking Benchmark - Improving the digital performance 23

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Benjamin Collette
Partner - Strategy, Regulatory
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Partner - Technology & Enterprise
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Pascal Martino
Partner - Deloitte Digital Leader
Strategy, Regulatory &
Operational Excellence
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Partner - Strategy, Regulatory
& Corporate Finance
+352 451 452 689
phazenberg@deloitte.lu
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