How Spanish Consumers Use Banking Channels

Age and Internet access continue to be the strongest predictors of channel choice in Spain. Branches are used by mainstream consumers, whereas online and telephone banking attract a niche of young, high-value Net users. Online banking adoption in Spain has grown from 4% in 2001 to 19% in 2008. Until 2006, the growth of Internet banking had little effect on branch use, but that is starting to change. Although branches are still the dominant banking channel used by 54% of Spaniards, monthly use has fallen by 3% since 2006. We think the time is ripe for Spanish banks to increase their efforts to migrate more customers online.