Direct Banking Case Studies

December 17, 2004


New York, NY, USA December 17, 2004

In a series of nine case studies, Celent highlights the role of direct channels in market entry strategies.

In a new report, , Celent examines the level of success of a number of direct banks around the world, and shows that direct banking has proved a viable alternative to penetrate new markets.

The report examines the successes and failures of direct banks around the world. Case studies are provided for ING Direct (Canada), Tesco Personal Finance (UK), The One Account (UK), IYBank (Japan), Citizens Bank of Canada (Canada), Banque Directe (France), President痴 Choice Financial (Canada), Inteligo (Poland), and Egg (UK).

"While the branch has remained the primary sales driver for multichannel banks, direct channels have been frequently used with success by new entrants to penetrate overbranched markets, mostly Canada and Western Europe, and to a lesser extent the US, where acquiring banks and deploying branches has remained an attractive option due to the fragmentation of the banking industry," points out Gwenn B騷ard, a senior analyst at Celent and author of the report.

"Direct channels have added to the distribution costs of incumbents. But for new entrants, they have become instrumental to enter new markets rapidly and cost-effectively," adds B騷ard.

The 46-page report contains 36 figures and two tables. A is available online.

of Celent Communications' Retail Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact for more information.


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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents


  New York, NY, USA December 17, 2004

Direct Bank Case Studies

Return to report Abstract


  Products Sold 4
  Level of Success 5
  ING Direct (Canada) 7
  Tesco Personal Finance (UK) 17
  The One Account (UK) 20
  IYBank (Japan) 21
  Citizens Bank of Canada (Canada) 27
  Banque Directe (France) 28
  President's Choice Financial (Canada) 30
  Inteligo (Poland) 35
  Egg (UK) 38

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