Moody's: CIS lags behind Europe in terms of penetration of online banking services
Baku, Azerbaijan, May 14
CIS is behind developed countries in penetration of conventional bank accounts and online bank accounts, but is still broadly in line with global averages, according to the report of Moody's Investors Service international rating agency, Trend reports.
Moody’s expects Russia to remain the leader in online banking penetration and e-payments among CIS countries, given that it is far ahead of other CIS countries due to the growing number of online bank users in Russia, and the penetration of smartphones and online banking services in the country will keep increasing.
“The number of online bank users in Russia has grown substantially in recent years, with major banks' online services becoming popular,” says Petr Paklin, VP-Senior Analyst at Moody’s.
“Credit and debit cards are more widely used in Russia than in the other CIS countries because of their convenience, the widest availability of POS terminals, less demand for cash and stronger confidence in the local currency. We expect Russia to remain the leader given that it is far ahead of other CIS countries and the penetration of smartphones and online banking services will increase further.”
Credit and debit cards are used in Russia more widely than in other CIS countries, due to the wider availability of payment terminals at points of sale and greater confidence in the national currency. The CIS lags behind developed countries in the use of online banking services, but corresponds to the world average. This is due to the lower availability of devices with access to the Internet, as well as the lower development of electronic payment infrastructure.
The CIS is behind the EU in internet infrastructure development, but the gap is narrowing quickly. CIS countries have a higher number of mobile SIM cards per capita than their EU peers but it does not translate into higher penetration of internet access. Given CIS countries have lower GDP or gross national income (GNI) per capita, there is less ownership of smartphones and SIM cards with data plans.