Technological development and an increasingly interdependent global stage have paved the way for innovation in most aspects of daily life. This past decade has seen this innovation encroach on the historically change-resistant banking industry. As a result, payments are now the easiest they have ever been. Eastern Europe with internet banking is a prime example.

As the world moves towards more convenient and efficient personal banking solutions, some regions have been faster to embrace online and mobile banking than others. Countries like China are at the top of all adoption surveys, Scandinavia is fast approaching a cashless society, and UK consumers are increasingly using personal devices or cards for merchant payments.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

 

 

However, with internet banking, Eastern Europe has seen a mixture of abrupt adoption and very low penetration.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Still bearing the scars of the Soviet era, the region is trying to catch up to its Western neighbours with mixed results. In the case of personal online banking, there seem to be three major trends:

  • Countries that have steadily adapted to internet banking services and have reached a high level of penetration (Estonia 80%, Lithuania 63%, Latvia 67%);
  • Countries that were slow to start but have reached respectable adoption (Poland 57%, the Czech Republic 57%), and
  • Countries that are severely lagging behind (Romania 8%, Bulgaria 8%).

Although banking in general is lagging behind in the Central and Eastern Europe (CEE) region, when adoption happens it tends to happen quite fast. Many signs point towards an impending wave of online and mobile banking adoption by consumers. Specifically, internet banking adoption in Romania and Bulgaria has increased by 126% and 100% respectively for 2019 compared to 2013.

 

 

One good explanation for the shortcomings of the two Eastern neighbours is the generally low level of banking services adoption overall compared to the region as a whole. Internet banking services aside, the frequency of use of cards for various payments is increasing at quite an aggressive rate. In the CEE region there is an average of twice as many transactions per card annually in 2019 compared to 2013.

Eastern Europe has a lot more potential to grow. The model to aspire to for the region is the Baltic States. Estonia in particular has a reputation for fast and widespread internet banking adoption. With more and more developments in the industry – including Monzo and Revolut focusing on the CEE area and ING going completely branchless in Romania – the average consumer will only get more comfortable adapting to future technology.