Digital Consumer Trends 2020 - The Nordic cut A study on Nordic digital consumer behaviour - Deloitte
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Contents Introduction 03 Section 1 05 Have smartphones become our worst best friends? 06 Industry Spotlight: Public Sector 10 Are the Nordics ready for a home office environment? 12 Section 2 19 5G: Is misinformation messing with our minds? 20 Industry Spotlight: Telecom 24 Will smartphones replace the need for human 26 interaction in the financial sector? Industry Spotlight: Financial Services 30 Section 3 33 The Nordic streaming war intensifies while audio 34 consumption is growing Industry Spotlight: Retail 38 Endnotes 40 About the research & contacts 41 02
Introduction Welcome to the Nordic Cut of Deloitte’s 2020 Digital Consumer Trends (previously known as the Global Mobile Consumer Survey), a multi-country survey of digital service users in Sweden, Norway, Denmark and Finland. The 2020 study comprises 5000 respondents across the Nordics. This year marks 10 years of Deloitte releasing these insights. With a decade of research under our belt, we thought it fitting to rebrand the survey in line with today’s trends. With consumers having access to a plethora of devices and no longer limited to just mobile phones, Digital Consumer Trends seems like a more fitting title for the survey – we hope you agree. To incite you to dive further into the report findings, we would like to provide a sneak peek of what awaits in this year’s report. Lockdown digital behaviours and satisfaction with working from home As the world entered various levels of lockdowns to stop the spread of COVID-19, the smartphone became a social lifeline for people. In fact, more than one third of the Nordic respondents believe their smartphones have helped them feel less isolated during the pandemic. Another consequence of COVID-19 is the increased use of home offices. It appears that the Nordic respondents are divided on whether they find working from home easier or more difficult than working from the office. You can learn more about all of this in section one. Consumer appetite for 5G and how smartphones could change the financial sector The 5G network is being deployed across the Nordics, but the Nordic consumers’ adoption of 5G may be influenced by misleading information and lack of knowledge. This may have led to a growing hesitance to switch to 5G among the Nordic respondents. While it is certain that 5G will increase speed compared to 4G, it is uncertain whether smartphones will replace the need for human interaction in the financial sector. Even though smartphones combine all the capabilities needed to manage personal finances, the Nordic respondents indicate that human interaction is still very much preferred in some situations related to financial matters. You can read more about this in section two. Smartphone usage to consume audio, video, games, news and social media As COVID-19 kept people from leaving their homes, they seem to have increased their overall media consumption. This is also true in the Nordics, where streaming service providers seem to have especially benefitted from this. Furthermore, we are witnessing the first punches in the Nordic video streaming war as new entrants are challenging the current Nordic frontrunner, Netflix. Visit the third and final sections to get all the details. Like last year, the report includes four interesting industry spotlights (Retail, Telecom, Public Sector, and Financial Services) that dive into industry-specific digital trends. We hope that you find the insights interesting. Please do not hesitate to reach out to us for further conversations based on the content. Jonas Malmlund Joachim Gullaksen Head of Technology, Media & Head of Technology, Media & Telecommunications in Sweden Telecommunications in Norway and in the Nordics Frederik Behnk Jukka-Petteri Suortti Head of Technology, Media & Head of Technology, Media & Telecommunications in Denmark Telecommunications in Finland Digital Consumer Trends | Introduction 03
Section 1 How have Nordic consumers used their smartphones during the COVID-19 pandemic, and are the Nordics ready for working remotely? Digital Consumer Trends | Section 1 05
Key t ak Dur e aw ing t ay has he p incre and Mor ased emi e th , inc c, media a ludin thei rs n one third g sm consum isola mar tph o a f the r tphon ptio n ted one c e u man d u s have o nsum sag y fee ring the help ers b e. l the pan e eliev y us dem d them e Have smartphones e th ic , whil feel eir p e less hon ju s t as es to om uch. become our worst 30% 31% best friends? 28% 26% 25% 25% 25% 23% 23% 17% 16% 17% 17% 17% 16% 15% 12 % 11% During the pandemic, the smartphone has become less 8 8 of a phone and more of a % % friend for many consumers. Young people especially feel that their smartphones have helped them feel Strongly agreeless isolated. Tend to agree Neither agree Tend to disagree Strongly disagree nor disagree In early 2020, countries around the world Figure 1 entered various levels of lockdowns to stop I have used my smartphone a lot more during the coronavirus pandemic the spread of COVID-19. With minimal physical Finland human contact, the smartphone became a social lifeline for people that helped them to 16 % 23% 25% 16% 17% feel less isolated from family and friends. If Norway the smartphone was an indispensable part of people’s lives before COVID-19, this has only 17% 26% 30% 8% 17% become more evident during the pandemic. Sweden The questions are how consumers have used 12% 25% 25% 8% 28% their smartphones during the pandemic and Denmark whether permanent changes in usage can be expected or if everything goes back to normal, 15% 23% 31% 11% 17% once the COVID-19 restrictions are lifted? Strongly agree Tend to agree Neither agree nor disagree The smartphone usage has increased in Tend to disagree Strongly disagree the Nordics Base: All adults 18-75 who have a smartphone (Half sample). In general, media consumption has grown in Weighted base (2340), Finland (499), Norway (465), Sweden (879), Denmark (496). Note: each stacked bar do not equal 100% as ‘don’t popularity during the coronavirus pandemic1. know’ answers have not been included. As most of the world was in lockdown, people increased their media consumption, which smartphone usage that were stimulated by included their usage of smartphones. lockdowns and isolation were bigger factors for young people than older people (i.e., social According to Deloitte’s 2020 Digital Consumer media and video consumption). Trends survey, 39% of Nordic consumers agree or tend to agree that they have used their Assessing the smartphone usage across the smartphones much more than normal during four Nordic countries during the pandemic, the pandemic. it seems that Norwegians in particular have used their smartphones considerably more Our survey also indicates that the increase in (43%) (Figure 1). Meanwhile, 33% of the smartphone usage greatly varies by age groups. Finnish respondents and 36% of the Swedish 18-24 year olds report the highest increase in respondents say that they have not used their smartphone usage (59%) during the pandemic. smartphones more. A possible explanation of 1 Nielsen, COVID-19: Tracking the Impact Meanwhile, 41% of 65-75 year olds disagree that the country differences in smartphone usage on Media Consumption, 2020. URL: www. nielsen.com/us/en/insights/article/2020/ they have used their smartphones considerably may be the differences in approaches that each covid-19-tracking-the-impact-on-media- more. It seems probable that the kinds of Nordic country has taken to combat the spread consumption/ 06
of the coronavirus. It seems, however, that the Figure 2 exceptional circumstances caused by COVID-19 I have bought a new device as a result of have affected most Nordic citizens. being more at home during the pandemic 29% Finally, our survey shows that women across the Nordics (44%) said they were using their 21% 21% 21% smartphones more during the pandemic compared to men (33%). 12% % 11 8% 8% 7% 7% The Finns and the youngest generations 6% 6% 6% 6% 6% 4% have bought more media devices during COVID-19 Finland Norway Sweden Denmark On average, 86% of the Nordic respondents Any device Smartphone Television Laptop said that they have spent more time at home due to the coronavirus. Finnish consumers Base: All adults 18-75 (half sample). Weighted base (2503), Finland (534), Norway (487), Sweden (934), Denmark (548). appear to exemplify this pattern of spending more time at home (91%), while 86% of age of 55 and 75 years indicate that they have Norwegians and 83% of Swedes and Danes bought a new device. said they spent more time at home due to the pandemic. Again, this is rather interesting According to the respondents in the 18-24 considering that Denmark and Sweden have age group, the single most popular devices had completely different lockdown strategies. purchased have been smartphones (17%), laptops (15%), televisions (13%) and gaming Perhaps as a result of staying at home consoles (13%). In addition, in this age group, more than others, the Finns have been the 23% state that they have bought either a new most active shoppers during the pandemic laptop or a new desktop pc – more than double compared to the rest of the Nordic countries. of the average Nordic level (10%). 29% of Finnish consumers have purchased a new device, and 23% of them have acquired How have Nordic consumers spent their a new smartphone or a television – almost time at home during the pandemic? double the levels in the other three Nordic As the Nordic respondents have stayed at countries (Figure 2). home more often, the level of some activities has increased. 26% have spent more time On average, more than one out of every five reading news online, while another 26% of the respondents (23%) have purchased a new respondents have spent more time streaming device as a result of staying at home more movies or TV series. Other popular activities during the pandemic. Smartphones have been include more reading (19%) and spending more the most common purchase in Finland (12%), time with the family (19%). Sweden (8%) and Denmark (7%). In Norway, laptops (6%) and televisions (6%) have been It also seems that as the level of physical social equally as popular purchases as smartphones contact decreased, the level of social media (Figure 2). Across the four Nordic countries, consumption across the Nordics increased. 10% have purchased a new computer (laptops According to our survey, an average of 27% of and desktop pcs). the Nordic respondents indicate that they have checked their social networks more often during Finally, the youngest Nordic consumers seem the pandemic. Female consumers (34% versus to have shopped for new devices more often 20% male) and young people aged 18-24 (42% than others. 47% of the consumers in the age versus 27% Nordic average) especially have group of 18-24 year olds state that they have spent more time on social media networks. purchased a new device during the pandemic. Nearly one third (31%) of the respondents in When comparing the general social media the age group of 25-34 year olds have done usage across the different Nordic countries, it so as well. On average, slightly more than one seems that the Norwegian respondents check tenth of the consumers (11%) between the their social media networks more often than Digital Consumer Trends | Section 1 07
others. 76% of Norwegian consumers state that Figure 3 they use social networks on their mobile phone Which, if any, of the following do you at least once a day. This is 13 percentage points do more of now as a result of staying higher than the Nordic average of 63%. at home more during the coronavirus pandemic? The consumption frequency of social media varies greatly among age groups. 82% of the Check my social networks youngest age group (18-24 year olds) use social 27% 28% media networks at least once a day, while 43% 32% of the oldest age group (65-75 year olds) do so. 27% 22% News consumption on the rise Read the news online As mentioned, our survey indicates that Nordic 26% consumers have read more online news during 35% the pandemic. It seems that this behaviour 32% 21% has increased in particular in Finland (35%) 22% and Norway (32%) compared to a 26% average increase across the four Nordic countries. Stream film and/or TV series 26% 26% Furthermore, in Finland, watching more TV 34% programmes via catch-up services (28%) 25% increased compared to other Nordic countries 20% (18% on average). While Finnish consumers Reading indicate a greater increase in watching more TV 19% compared to other Nordic consumers, they also 22% seem to have a smaller increase in quality time 24% with their families (16%) compared to the Nordic 16% 17% average (19%) (Figure 3). Spending (quality) time with my family In Norway, streaming movies or TV series 19% increased by 34%, which is 8 percentage points 16% 22% more than the Nordic average (26%). The 19% percentage of Norwegians (32%) who checked 18% their social networks more often during the Watch TV programmes via catch-up services pandemic was also higher than the Nordic 18% average of 27% (Figure 3). Of the four Nordic 28% countries, the Norwegian respondents indicate 19% the greatest increase in quality time spent with 15% 11% their families during the pandemic (22%). Online banking The Swedish respondents indicate that they 14% have spent more of their time during the 16% 13% pandemic on checking social media networks 12% (27%), streaming movies or TV series (25%) and 14% reading news online (21%) (Figure 3). In addition, Sweden appears to have experienced a higher Total Finland Norway increase of people who have shopped for Sweden Denmark groceries online (12%) compared to any of the Base: All adults 18-75 (half sample). Weighted base (2503), other Nordic countries (9% Nordic average). Finland (534), Norway (487), Sweden (934), Denmark (548). In Denmark, 22% of consumers indicate that Back to normality or will everything change? they spent more time reading online news Nordic consumers were also asked about and checking social media networks during which, if any, of the activities they would the pandemic, while 20% spent more time on continue to do as frequently as they do now, streaming movies or TV series (Figure 3). once social distancing restrictions are lifted. 08
While 26% of the Nordic respondents state isolated from family and friends during the that they have been reading more news coronavirus pandemic. 55% of the 18-24 year online due to the pandemic, 18% say that they olds agree that their smartphone has helped will continue this behaviour post-pandemic. them feel less isolated and only 16% disagreed Similarly, 26% said that they were streaming with this statement. We see the same tendency more movies or TV series during the pandemic, among the 25-34 year olds (56% agree versus while 17% indicate that they would continue 18% disagree). In contrast, 27% of 65-75 year this after the pandemic. In addition, 27% of the olds agree that their smartphone has helped them Nordic respondents have increased their social feel less isolated and 31% disagree (Figure 4). media consumption due to the pandemic, and 16% of the respondents said that they would Interestingly, 46% of the female respondents continue this behaviour. Finally, 19% have spent agree that their smartphones have helped them more quality time with the family because of feel less isolated while only 22% disagreed. the pandemic, and 14% will continue to do so Meanwhile, 31% of the Nordic males feel that once the pandemic is over. their smartphones have helped ease isolation, and 29% disagrees. This indicates that females, These results indicate that at least some of the to a larger degree than males, believe that their Nordic citizens will continue their behaviour smartphones have helped them feel less isolated developed during the pandemic even after the from friends and family during the pandemic. virus has been contained. Meanwhile, 38% of the Nordic respondents When assessing the differences between the feel that they use their smartphones too much. age groups in the Nordics, 30% of 65-75 year According to the respondents, 44% of the olds indicate that they have read the news Nordic female consumers believe they use their online more during the pandemic, and 26% smartphones too much compared to 33% of indicate that they will continue to do so after their male counterparts. The 18-24 year olds the pandemic. This is 9 percentage points – the age group that has the greatest usage of more than the Nordic average (17%). 16% of the smartphones – clearly feels that they are also respondents in the 65-75 age group have used using their smartphones too much (63%). online banking more during the pandemic, and 14% will continue to do so after the pandemic. For the respondents that feel they use their This is 5 percentage points higher than the smartphones too much, the most common Nordic average of 9%. situation for doing so is in the evenings (42%). On average, a quarter of the respondents A friend in need is a friend indeed (25%) feel that they use their smartphones too As consumers spend more time on their much when spending time with their family. Of smartphones, the device has become more the 65-75 year olds who believe they use their of a friend than a phone. On average, 38% of smartphones too much, 52% of them believe all the Nordic respondents seem to feel that that they are using their smartphones too much their smartphones have helped them feel less all the time regardless of the situation. Figure 4 My smartphone has helped me to feel a lot less isolated from family and friends during the coronavirus pandemic 35% 36% 34% 35% 35% 31% 27% 24% 24% 25% 23% 22% 23% 22 % 19% 19% 19 % 18% 15% 12% 10% 9% 9% 8% 8% 7% 7% 7% 6% 6% 18-24 25-34 35-44 45-54 55-64 65-75 Strongly agree Tend to agree Neither agree nor disagree Tend to disagree Strongly disagree Base: All adults 18-75 who have a smartphone (Half sample). Weighted base (2340), 18-24 (274), 25-34 (447), 35-44 (412), 45-54 (439), 55-64 (406), 65-75 (362). Note: each cluster do not equal 100% as ‘don’t know’ answers have not been included. Digital Consumer Trends | Section 1 09
Industry Spotlight: Public Sector App hiccup for Nordic public sector Citizens and regulators remain worried that Nordic coronavirus surveillance technologies are a slippery slope towards a reduction of privacy. The Norwegian Data Protection Authority shut down “Smittestopp” – Norway’s coronavirus Deloitte expert take tracking app – only two months after its launch These results underline the great dilemma of our due to a disproportionate interference in user technological era. As digitalisation revamps the public sector, privacy2, and Denmark’s “Smittestop” has received an abundance of previously unavailable data becomes available – criticism for not working appropriately3. Our survey but where do we draw the line? Allowing the public sector access to shows a mixed view among Nordic citizens towards greater, real time datasets about its citizens – such as locational data governmental use of technology to monitor the and activity data – will enable the development of improved “next spread of COVID-19. This raises the question where generation” public services, although this will come at the expense of to draw the line between data privacy and pursuing the individual’s data privacy. “the greater good”. “The utilization of individual’s Five key stats from the public sector: private data in public services has huge potential, but should be 1. Almost two thirds (65%) of the Nordic citizens actively restrict general apps’ carefully regulated, rooted in trust access to information. and structured around the idea of 2. Two thirds (66%) of the Nordic citizens creating a better service for the end are concerned about how private user”. companies use their private data, and – Carsten Jørgensen, Nordic Public Industry Leader. one third (33%) is against governmental location tracking for coronavirus Grasping the tech-enabled potential purposes. First, the public sector must take wisdom from the “dos and don’ts” of the private sector in relation to handling individuals’ private data. 3. More than two fifths (41%) of the Although we are in the midst of a pandemic, it seems that neither Nordic citizens support governmental regulators nor citizens will lower their expectations towards the location tracking – Finns being the most management of private data. supportive at 55%. Meanwhile, Sweden has more people against location From there, adopting a user-centric mindset, which focuses on the key tracking (35%) than supportive of if needs of the citizen, both in the development and the communication of new public services, will likely allow for an easier roll-out of new (34%). innovative public services enabled by technology. An example of 4. Nordic 55-75 year olds are the most this are thriving e-consultations – secure online video medical supportive of governmental location consultations – with doctors during the coronavirus pandemic. tracking (48%). In summary, with the right approach, the public sector can enable a 5. Almost half of the Nordic respondents massive positive impact by developing and using public sector data (47%) support thermal cameras to track much more aggressively than today. There is unutilised potential here. fevers to enforce quarantine rules. Meanwhile, there is a consensus that governments should not be able to 2 Norwegian Institute of Public Health, NIPH stops collection of personal data in Smittestopp, 2020. www.fhi.no/en/news/2020/niph-stops-collection-of-personal-data-in-smittestopp/ monitor people’s health data. 3 Meremobil.dk, 1,6 millioner danskere har downloadet udskældt app, 2020. meremobil.dk/2020/10/16-millioner-danskere-har-downloadet-udskaeldt-app 10 Industry Spotlight | Digital Consumer Trends
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Key t ak Peo e aw ple i ay they n th fi e N o diffi nd work rdics a cult ing f re d effe . T ro ivid ctive hey poin m hom ed on whe ness t ou e ea whe n wo to b t si th rkin e th issues r er or m er g fro e bigg elat o re mh ed t ome est chal o leng Are the Nordics . es ready for a home office environment? Until recently, working from home was a flexible benefit associated particularly with employees in desk-based office roles. However, COVID-19 changed this, and necessitated an increase in the use of home offices. This has had, and will continue to have, significant implications for the way companies organise work. Since the outbreak of COVID-19 and the 38% of the respondents having a desk-based subsequent lockdowns around the world, many job and mainly worked in an office environment have been forced to work from home. Not only pre-pandemic are now working from home, have people worked remotely, but they have while 44% of them are still going to the office. also had to rely on technology and digital tools As our survey was conducted in June and to a greater extent than ever before. July, these numbers may be a result of the different COVID-19 strategies across the Nordic While the emergence of new technologies countries. Nevertheless, these figures show has pushed employers gradually toward that a substantial number of respondents with more digital workplaces for the past several desk-based jobs still chose or had to go to the years, COVID-19 has helped to accelerate office instead of working from home. this development significantly. Thus, it will be interesting to see whether we will return to In general, our survey underlines that people business as usual, or if our ways of working working in the Nordic countries to a larger have been transformed permanently marked degree than ever before have been working by a movement away from traditional office- from home. This finding is further supported based work towards a fully digital home (or by market data such as IKEA’s sales figures anywhere) workplace. for office furniture that indicates a strong performance in 20205. In our opinion6, this may Are the Nordics ready for a digital result in more people working from home post- workplace? pandemic – partly due to practicality but also Our survey indicates that 47% of the because of their wishes. respondents work in desk-based office roles 4 The remaining 14% of respondents are while 39% of the respondents have non- Considering these findings, the obvious either unemployed or have answered “Don’t know” or “None of these”. desk-based jobs 4. More than half (51%) of the questions seem to be whether people in the 5 CNN Business, Ikea’s online sales surged respondents in a desk-based role have either Nordics are ready to work in a more digital and as people turned homes into offices and before or during the pandemic worked from remote manner and whether their sentiment schools, 2020. edition.cnn.com/2020/10/06/business/ home at least some time compared to only towards working from home affect the overall ikea-coronavirus-sales/index.html 17% of the respondents in a non-desk-based job satisfaction. 6 Deloitte, How COVID-19 contributes to a role. This contrast is not surprising given that long-term boost in remote working, 2020. non-desk jobs are more difficult to move and/or www2.deloitte.com/ch/en/pages/human- capital/articles/how-covid-19-contributes-to- often cannot be done from one’s home. a-long-term-boost-in-remote-working.html 12
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Figure 5 Apps used on mobile phone (at least once a day) 54% 46% 43% 40% Wo rk em ail Sky pe om 5 % Zo 2% 6% 3% 4% 4% 4% 5% Finland Norway Sweden Denmark Base: All adults 18-75 who have a smartphone. Weighted base (2300), Finland (496), Norway (461), Sweden (867), Denmark (475). Nordic consumers have the devices almost half of the respondents who work (46%) needed to work remotely use work email apps on their smartphones at In recent years, little has changed in terms of least once a day. the devices we use. In 2020, 93% of the Nordic consumers own a smartphone, making it the In general, it seems that Nordic people have most used device among the respondents become more accustomed to using their that are employed (92% in 2019). 93% of the smartphones as a working tool. From 2017 to respondents who are employed also own a 2020, the daily usage of work apps like Skype laptop and/or a desktop (93% in 2019). Hence, has increased from 5% to 6%, while the daily it appears that people have the devices needed usage of email apps has increased from 38% to work effectively away from the office. to 46%. More recently, Zoom has entered the picture with an average of 4% of the Smartphone apps pave the way for respondents indicating that they use the Zoom communication app at least once a day. 54% of the Norwegian When it comes to apps, it seems that people respondents indicate that they use work email are increasingly using work-related apps apps on their smartphones at least once a day. on their smartphones, which allow them to This is 8 percentage points higher than the conduct work from anywhere. For instance, Nordic average of 46%. 14
“No internet connection detected” that require higher bandwidth. Therefore, they Figure 7 While most of the Nordic respondents have rely much more on a stable internet connection. Easier to work from home the technological devices/hardware needed to than in the office? conduct their work in a more digital and remote Overall, the above data indicates that manner, almost half of the respondents (49%) connectivity issues when working from home 3% 6% indicate that they have experienced internet are happening rather frequently. One may 35% 19% connectivity issues with their home broadband. therefore assume that this negatively affects 31% Furthermore, 25% of those experienced such people’s perception of working from home. Nordic Finla issues at least once a week. This indicates It seems that there is an opportunity to that connectivity issues are happening rather improve connectivity to improve the perceived frequently. Issues with the internet connection experience of the digital workplaces. 24% have negative implications when working 31% from home – it brings instability to the digital Nevertheless, it is evident that most Nordic workplace and can cause a significant amount 3%are people, including connectivity issues, 6% 2% of frustration. in a position that allows them to work from 35% 19% 28% home. The question then 31is% whether Nordic The respondents from Denmark seem to consumers want to or not? Nordic Finland Norw experience internet issues slightly more often 51% (29%) than the other Nordic countries on a It may be more convenient to work from weekly basis (25% average), while the Norwegian home, but there are challenges 24% 3% respondents seem to have slightly fewer issues Our survey reveals that people across 31 the % 41 Nordic3countries are roughly evenly 6%split when 2% % 2%% % with their internet connection at home (22%) 31 35 (Figure 6). In addition, the youngest age group it comes to how they%feel about working from 35 19 % 28 % 30% of respondents, 18-24 year olds, seems to 31% home. As a general Nordic average, 35% find 34% Nordic experience issues with home broadband most it easier, while 31% find it more difficult. Most Nordic Finland Norway Swed frequently (44%), while the oldest age group, of the Finnish respondents (51%) indicate that 51% 65-75 year olds, experiences connectivity issues working from home is easier for them while with the least frequency (14%). only 19% of the Finns find24 it more % difficult 3% (Figure317).% 41% 31% 3 An explanation of this may be that the younger 3% when it age groups have higher expectations 6% of the Norwegian respondents Two fifths 2% % (41%) 2% 5% 31 35% comes to internet connectivity and use services 35% 19%indicate that working from home has made no30% 28% 33% 31% difference to them. This indicates that a rather 34% Nordic Figure 6 Nordic substantial Finland proportion of the respondents Norway from Sweden 38% Denm Issues connecting to home broadband 51% from home as being Norway perceive working once a week or more often as no different to being at work (Figure 7). 24% 3% 25% 29% As for the remaining two Nordic 41 31 31% countries, % % 31% 22 % it seems that there are only minor 243% % 6% 31 2 %% 35%2% differences between the Swedish and 5% 35% 19% 28% Danish respondents, 30% but in both countries33% 32% 31% Nordic34 % the net perception was negative, with more Nordic Finland findingNorway Sweden it difficult than easier to work from 38% Denmark 51% home. Approximately 33% indicate that working from home is easier while 34% of the Swedes 24% 3% and 38% of the Danes 31indicate % that it is more 31 % 41 % difficult (Figure 7). 31% 26% Easier 31% 35% No difference Moreover, data indicates that a greater More difficult proportion of people in the youngest age Nordic Dont' know groups finds it easier to work from home than Finland Norway Sweden Denmark those in the same groups that find it more Base: All adults 18-75 who are working from home. Weighted base (494), Finland Base: All adults 18-75 with home broadband (Half sample). difficult to work from home. Slightly more than (90), Norway (98), Sweden (184), Denmark Weighted base (2322), Finland (468), Norway (459), Sweden (870), two fifths (42%) of the respondents between (122). Percentages may not total 100 due Denmark (524). 3 % 31% to rounding. Digital Consumer Trends | Section 1 15 31% 35%
the age of 18-44 state that working from home Issues related to effectiveness seem to be the is easier compared to 31% of the same cohort biggest problem when working from home finding it more difficult. among all four Nordic countries (53% on average). This also seems to be true across all As mentioned initially, the respondents from the age groups. Our survey further reveals that Finland seem to find working from home it is the youngest age group, 18-24 year olds, easier than working from the office. Compared that has the most problems with effectiveness to other countries in the Nordics, the Finns when working from home (70%). Meanwhile, also report fewer issues related to access to we see that the respondents between 25 technology (27%), reliability of technology (19%), and 34 struggle with disturbances from the effectiveness (47%) and disturbances from the environment more than any other age group environment (31%) (Figure 8). This is likely part (53%). This is likely due to people in this age of why the respondents from Finland seem to group typically having small children. find working from home easier. When exploring some of the different Besides the above-mentioned parameters, challenges that the respondents have cultural differences across the Nordic countries experienced when working from home, our could also influence why only 19% of the Finnish survey indicates that 26% of the respondents respondents say that they find it more difficult report that they are used to working on larger to work from home than in the office compared or more monitors at the office, which is an to 38% of the Danes. issue for them when working remotely. This Figure 8 Characteristics of working from home during the corona pandemic 63% 53% 53% 54% 50% 48% 46 % 47 % 43 % 33 % 31% 30% 27% 24% 23% 19% Issues with Issues with Issues with Disturbances from 7 CNBC, Working from home? You might be Access to Tech Tech Reliability Effectiveness Environment able to expense a new desk, 2020. www.cnbc.com/2020/06/03/companies- Finland Norway Sweden Denmark are-paying-for-their-workers-home-offices. html Base: All adults 18-75 who are working from home. Weighted base (494), Finland (90), Norway (98), Sweden (184), Denmark (122). 16
Figure 9 60% Easier to work from home than in the office? 42% 41% 43% 42% 34 % 35% 31% 30% 32% 28% 29% 25% 26% 22% 22% 21% 16% 5% 3% 4% 3% 3% 3% 18-24 25-34 35-44 45-54 55-64 65-75 Easier No difference More difficult Don't know Base: All adults 18-75 who are working from home. Weighted base (494), 18-24 (38), 25-34 (113), 35-44 (127), 45-54 (96), 55-64 (85), 65-75 (34). implies that Nordic companies may want to The art of procrastination – are we using offer employees money (up to US$1,000) to buy our phones more while working from home? home monitors/bigger monitors or other home Many consider smartphones to be a distraction office equipment, as is being done elsewhere7. in various settings and situations, including while at work. Our survey reveals that around However, the challenge of screen size is closely 15% think they use their smartphones too followed by not being able to talk to colleagues much while working, while only 6% among (24%) and working longer hours at home (25%). those working from home think that they are on This begs the question whether longer working their smartphones too much. This implies that hours at home also equals getting more work when working from home people perceive their done. phones to be less of a distraction. Meanwhile, it also implies that when working from home, More time spent working equals more people are using their smartphones more for results, right? work-related tasks, or that people are allowing Our survey reveals that an average of 25% themselves more breaks when working from of the Nordic respondents report longer home, also allowing themselves to use their working hours when working from home. Since smartphones more. effectiveness has been reported as one of the challenges of working from home for slightly Ready for the digital workplace, but … more than half of the Nordic respondents To sum up, it seems that people across the (53%), it seems unlikely that they are getting Nordic countries have the devices they need more work done at the home office. Instead, to work from home, but that there are mixed people may work longer hours just to complete opinions about whether it is easier (35%) or the same amount of work as they do at the more difficult to do so (31%). Part of this reason office. Another explanation may be that may be that people are used to working on respondents perceive their working hours as larger/more monitors, but the respondents longer when working from home, because also seem to experience technical issues with there may not be a natural switch between internet connectivity frequently across all being at work and being at home. Finally, a Nordic countries. Furthermore, issues related third explanation of the perceived increase in to effectiveness stands out as the biggest working hours may be that the respondents, challenge for the Nordic respondents while when working from home, use the time saved working from home (53% on average). Further, on commuting to put in extra working hours. the respondents reported that they found it difficult not being able to talk to colleagues and In terms of country comparisons, more clients face-to-face (24%) as well as working respondents from Finland (31%) and Denmark longer hours when working from home (25%). (28%) report longer working hours when working from home, compared to fewer respondents from Norway (21%) and Sweden (20%). Digital Consumer Trends | Section 1 17
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Section 2 What will the effects of 5G be in the Nordics, and will smartphones replace the need for human interaction in the financial sector? Digital Consumer Trends | Section 2 19
Key t ak The e aw rollo ay How ut ever of 5G is kno , mis the wl info t to d edge m rma alk of th istin ake tion e to guis it ha an wn. h be rd fo d a lack t we r No of en f rdic acts cons and fake umers 5G: Is misinformation new s. messing with our minds? More than half of the Nordic consumers are not familiar with the most fundamental aspects of 5G. Furthermore, unsubstantiated conspiracy theories about health risks are spreading like wildfire. Right now, telecom operators from all over the Figure 10 world are investing in the fifth generation of 5G: Knowledge and perceptions. the mobile telecommunications network: 5G. Do you know enough about 5G? (left) Despite the fact that 5G promises to deliver Do you think that 5G will lead to better faster speeds and help businesses accelerate mobile connectivity? (right) digital and sustainable transformations, the share of Nordic consumers willing to switch to 61% 44% 5G is decreasing during the current early stages of the Nordic 5G rollout. 54% 51% 5G in the Nordics 60% 44% Assessing the current usage level of 5G across 65% 37% the Nordic countries, it becomes evident that the new mobile network is still in its 60% 49% early phases. On average, 6% of the Nordic Do not know enough Better mobile connectivity respondents state that they are using the 5G network. 7% of the Finnish respondents Nordic average Finland Norway Sweden Denmark are using the 5G network, while only 3% Base: All adults 18-75 who have a phone or smartphone. Weighted of the Danish respondents are using the base (2417), Finland (520), Norway (475), Sweden (903), Denmark (518). newer, faster network. 6% of the Swedes and Norwegians use 5G today. Surprisingly, 37% of half (61%) of the Nordic respondents state that the respondents state that they are using 5G they think they do not know enough about 5G on their Apple smartphones – but there were (Figure 10 left). Furthermore, while it seems no 5G compatible iPhone on the market when natural to assume that 5G is an improvement our survey was conducted. This may indicate in terms of speed and connectivity compared that Nordic consumers may have a hard time to the current 4G technology, our Nordic understanding what 5G really is. respondents do not seem to be convinced. Data indicates that less than half (44%) of Who is advocating for 5G? the Nordic consumers think that 5G will lead As mentioned, even though some Nordic to improved mobile connectivity (Figure 10 telecom operators have already activated their right). The Swedish respondents are the most 5G networks, many Nordic consumers do not sceptical ones, as only slightly more than one seem to understand the technology or how third (37%) believe that 5G will lead to better it will fully affect their lives. In fact, more than mobile connectivity. 20
It is not directly clear why there is not a better Figure 11 understanding of 5G. Even though many Which of the following best describes your people have voiced their opinions about 5G, attitude towards 5G networks? an explanation may be that very few have 2020 taken the time to thoroughly explain it. Several 59% 19% 22% Nordic telecom operators remain to put 5G on their communications agenda, and Nordic 2019 22% operators could do more to educate telecom 63% 18% 19% consumers about the benefits of 5G. 2018 67% 13% 20% One could assume that some of the telecom 2020 19%operators are waiting to share their expertise Would switch (eventually/if available/if recommended) until 5G has been completely rolled out. Would switch if forced to 59% clear: Nevertheless, one thing remains Don't know equipping consumers with knowledge of 5G Base for 2020: All adults 18-75 who have a phone or smartphone. Weighted base (2417), Finland (520), Norway (475), Sweden (903), seems to be a great opportunity for telecom Denmark (518). Base for 2019: All adults 18-75 who have a phone operators to contribute to the 5G debate with or smartphone. Sweden (1775), Norway (942), Denmark (1042), Finland (1035). Base for 2018: All adults 18-75 who have a phone or 19%knowledge that demystifies some of the expert smartphone. Sweden (1798), Norway (947), Denmark (1051), Finland widespread misconceptions. (1050). A toxic mixture of misinformation in 2019 and 59% in 2020. Furthermore, the Even though 2019 5G has the potential to redefine 17the social and business landscape, various % percentage of consumers who do not know if they want to move to 5G has increased from 592018 20% in % to 22% in 2020. This growing 63% have been rumours and conspiracy theories hesitance to switch to 5G may be caused by the spreading rapidly on social media and news sites. Some of the conspiracy theories argue, above-mentioned misplaced health concerns. It may also be caused by other factors, for example, that 5G8: 19% such 22% as perceived lack of benefits of 5G over 4G for 20% • leads to cancer; most consumer applications. 63% 17% 19% • weakens the immune system; The data also reveals another trend among • has harmful environmental impacts, Nordic 2018 % particularly on wildlife; and 67%consumers: the higher the perceived 13% 20% 13 level of knowledge about 5G, the greater the • acts as an accelerator for the spread of proportion of consumers who disagree with coronavirus. 67% the claim that 5G leads to increased health risks (Figure 12). The overall concern is that more antennas will lead to more exposure to electromagnetic Among Nordic consumers with a low level radiation. According to the World Health of 5G knowledge, 39% believe that there are Organization (WHO) though, exposure to no health risks associated with 5G. When wireless technologies has not been causally the question is posed to those among the linked to any human health issues9, and the respondents who perceive themselves as well- European Commission states that even though informed consumers, the number increases the overall level of exposure will modestly to 73%. Interestingly, there is little difference increase with 5G, it will remain well within safe between those with high and low knowledge limits10. in terms of believing that there are health risks associated with 5G: 15% and 17%, respectively. 8 Telecoms.com, 5G conspiracy theories; what they are, why they are wrong and Nonetheless, it looks like 5G has raised This has some important public policy what can be done, 2020. www.telecoms. concerns and elicited scepticism among Nordic implications. Although it is a minority view com/503845/5g-conspiracy-theories-what- they-are-why-they-are-wrong-and-what- consumers. First of all, consumer expectations (about one sixth of people in the Nordics), it is can-be-done/ for 5G have been trending downward between one that does not vary by perceived knowledge, 9 WHO, 5G mobile networks and health, 2018 and 2020 (Figure 11). In 2018, 67% would which suggests that trying to educate this 2020. www.who.int/news-room/q-a- detail/5g-mobile-networks-and-health switch to 5G eventually, if it was recommended portion of the population into accepting 5G 10 European Commission. 5G FAQ. 2020. or when available. That figure dropped to 63% may be more difficult than first thought. ec.europa.eu/digital-single-market/en/ faq/5g-faq Digital Consumer Trends | Section 2 21
Figure 12 I believe there are health risks associated I think I'll have better mobile connectivity with 5G if I move to 5G High knowledge High level knowledge level High knowledge High level knowledge level 3% 15% 3% 15% 4% 4% wledge lH evigeh knowledge level l 9% 30 9% % 30% wledge levow knowledge leve L el l 46% 46% 73% 73% 20% 20% 31% 31% Low knowledge level Low knowledge level Low knowledge level Low knowledge level 16% 28%16 % 28% 24% 24% 43% 43% 17 % 17% 11% 11% 22% 22% 31% 39 % 39 % 1% Agree Neither agree nor disagree Disagree Don't know Base: All adults 18-75 who have a phone or smartphone. Weighted base (2417), Finland (520), Norway (475), Sweden (903), Denmark (518). Additionally, data indicates that a higher the fear of 5G has already taken root in level of knowledge leads to less uncertainty some consumers’ minds. This can make it about whether 5G will in fact result in better hard, or even impossible, to change these connectivity. Among Nordic consumers with consumers’ perception of 5G. Although this a low level of knowledge, 24% do not know only seems to be a minority problem among whether 5G will lead to better connectivity, Nordic consumers, it indicates that it may whereas only 4% of consumers with a high already be too late to dispel the conspiracy level of knowledge doubt that 5G will lead to an theories among some Nordic consumers. improvement of connectivity. This underlines the importance of being more proactive in repudiating the misconceptions Meanwhile, data indicates that 11% of the about 5G and more clearly articulate the Nordic consumers with low knowledge state obvious benefits of 5G. that 5G will not lead to better connectivity, while 30% of the consumers with high knowledge 5G will replace 4G, but what about the state the same. This is interesting, as one fibre-optic networks? would expect higher knowledge to equal a 5G not only promises greater speed on the better understanding of the benefits 5G brings. go, but it will also deliver faster home internet An assumption may be that respondents speeds and do so at a lower cost than 4G ever with higher knowledge understand that 5G could. The question is whether the 5G mobile will provide faster download speed, but not network will replace the need for the fibre-optic necessarily better mobile connectivity11. networks (broadband). At present, the answer Mobilsiden, 5G er hurtigere, men er det 11 pengene værd?, 2020. to that question is rather uncertain, as we need mobilsiden.dk/priser-guides-tips/ Initially, the problem may appear to be a better understanding of how 5G will compare mobilabonnementer-tips/5g-er-hurtigere- men-er-det-pengene-vaerd/ one of education; however, it seems that to existing products. 22
In our survey, 22% of the Nordic respondents Figure 13 that do not use mobile internet at home state Monthly data allowance on mobile phone? that one of the reasons for not doing so is that their mobile internet is slower than their home broadband. Another 21% state that 11% 12% mobile internet is less reliable which is why they 23% 10% 21% will not use mobile internet at home. These 7% barriers may be broken down by the faster and more reliable 5G network, which supports the argument that more people would start using the 5G mobile network as their primary internet connection at home. 51% Meanwhile, another 21% of the respondents state that one of the reasons why they do not use mobile internet at home is because it is more expensive. Our data also shows 26% 87% 78% 72% that only 5% of Nordic consumers today are Finland Norway Sweden Denmark using 4G mobile internet as their only internet Don't know connection at home. Part of that reason may Unlimited data be that the majority of consumers in Sweden Limited data (78%), Norway (87%) and Denmark (72%) Base: All adults 18-75 who have a smartphone (Half sample). have limited monthly data allowances on their Weighted base (2340), Finland (499), Norway (465), Sweden (879), mobile network. The opposite is true for Finnish Denmark (496) consumers where only 26% state that they have a limited amount of data they can use each that 5G will most likely not replace the need for month. Consequently, Finnish consumers seem the home broadband – at least not in the short more likely to use mobile internet at home (9% term. versus the Nordic average of 5%). To sum up, while 5G will increase mobile These findings argue against the notion that internet speed and allow for faster downloads, speed is the only barrier to why consumers it is uncertain whether the increase in speed are not using mobile internet at home. Instead, will make more Nordic consumers replace their it seems that having a limited or an unlimited home broadband with 5G mobile internet. It data plan also is a determining factor in seems that this will very much depend on the deciding whether to use mobile internet as the perceived increase in speed compared to what primary internet connection at home. Since the home broadband offers, price and the data majority of Nordic consumers currently have a allowances of Nordic consumers’ smartphone limited data plan, this supports the argument subscription plans. Digital Consumer Trends | Section 2 23
Industry Spotlight: Telecom The race for relevance Telecom operators must adapt to technological changes in order to remain relevant, add value and generate revenue – both online and offline. While the 5G network carries the potential to accelerate Deloitte expert take digital business transformations, it still seems that The increased usage of mobile devices has changed no online channel can replace the sensory in-store consumer behaviour dramatically. Surprisingly, only 3% experience. However, as more consumers realise that of Nordic consumers have used their telecom operator’s app they can get what they want without leaving their couch to purchase a new phone within the last two years. This may or office, telecom operators without a rock-solid digital indicate that there is an opportunity for telecom operators to marketing strategy are in trouble. Luckily, there seems to use their apps as more direct and personalised sales channels be unused potential for operators to rethink their revenue rather than the apps’ current primary functions of providing streams and preserve their licence to operate. customer service. “In the telecom app, the Five key stats from the telecom industry: operator has the customer's full 1. More than half of Nordic consumers (58%) attention combined with a lot of have not been in a telecom store in the past data. Why not use this channel two years. to drive revenue?” 2. One out of every four Nordic consumers – Frederik Behnk, Danish Technology, Media & would not miss the physical telco store if it Telecommunications Industry Leader closed (27%). Data is the new black 3. Trying out phones would be the most missed Telecom operators no longer have to guess what their feature if mobile operator stores closed customers want. Thanks to the huge volume of customer permanently (29%). data, telecom operators can get to know them better than ever before: how much data they use, what phone they have, 4. Nordic consumers are predominantly using how they interact with their brand, and so on. With these their telecom app for service purposes – not valuable customer insights, operators are in a great position for purchasing products. 45% have not used to customise their products and services to fit the individual their telecom operator’s app within the last customer's needs. two years. While the digital experience has improved significantly in recent 5. Only 3% of the Nordic consumers have years, physical stores are far from obsolete. However, in order purchased a smartphone through their to stay relevant, operators must seize the golden opportunity mobile operator’s app. they have to use digital tools to provide a more personalised experience and meet the demands of customers – both in the telecom app and in the physical store. 24 Industry Spotlight | Digital Consumer Trends
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Key t ak Sma e aw rt ay thin phones gs d are as b o ne, a gr ank ing nd t eat for one h ge touc , paym e device t ting ev com h aw ents help er yd p ay an s ay for a licated fi . Howe d inves us free hou nan ver, tme u com se, N cial whe nts a p time, pute deci n it c r rs o ordi c sio ome e only r fac consum ns, i.e., s to m e-to t -face ers pre aking o ore fer t ut a Will smartphones inte o loan rac t ion w use lap i th a tops dvis / ers. replace the need for human interaction in the financial sector? Smartphones combine all the capabilities needed to manage personal finances. However, face-to-face meetings are difficult to replace in some situations. The smartphone has become an essential Figure 14 everyday multitool. Whether you need to Share of respondents who use their phone manage simple one-off payments at a store, to do the following activities once a month to split a bill with a friend or to manage or more often investments, the smartphone can help. The questions are if we are fully utilising the Check bank balances possibilities provided and how the future of 74% financial services companies looks like. Are Transfer money to another individual in your country we going digital or mobile only? Will there 64% still be a need for cash, physical credit cards, Message customer service agents online bank branches and financial advisers or will 19% everything we need be reachable by bit-stream? Transfer money to another individual located in a different country Banking and payments in just one touch 10% Our survey shows that Nordic consumers Browse shopping websites/apps are keen users of mobile banking solutions 61% to conduct daily banking activities. Nearly Purchase a product online three out of every four Nordic respondents 27% (74%) indicate that they use their smartphone Place or redeem a bet/gambling to check their bank balances at least once 23% a month. Meanwhile, close to two thirds of Pay for a service the respondents (64%) state that they use their smartphone to transfer money to other 17% individuals domestically (Figure 14). 68% Pay for car parking perform other banking transactions, including 31% transferring money between their own Pay for a taxi accounts or paying bills. 10% Across all Nordic countries (63%) and all age groups (63%), the smartphone is the preferred Base: All adults 18-75 who have a phone or smartphone. Weighted base (4804), Finland (1042), Norway (943), Sweden (1794), device to check bank balances. The oldest Denmark (1025). Note: Once a month or more often is the sum of age group, 65-75 year olds, seems to be less respondents who selected "at least once a day", "at least once a week" or "at least once a month" as their answer. 26
frequent users of their smartphones when it Figure 15 comes to checking their bank balances (38%) Payment method normally used by especially when compared to the youngest age respondents to pay for products or group, 18-24 year olds (76%). services online using their phone A credit or debit card Although almost two thirds of those surveyed 72% use their smartphones for basic activities such 65 % as checking balances (63%), more complex 75% transactions are less common. About a quarter 76% of the Nordic respondents (26%) manage their 69% investments on their smartphone at least once Online money transfer/payment provider a month, while one sixth of the respondents 46% (16%) manage their insurance on their 56% smartphone on at least a monthly basis. In all 50% usage categories measured from 2018 to 2020, 47% the trend is increasing. 32% Your online banking app On a monthly basis, Danes (68%), Norwegians 38% (75%) and Swedes (71%) use their smartphones 64% 28% to transfer money to other domestic individuals 32% much more frequently than Finns do (39%). 34% Paying for parking using a smartphone is Apple Pay, Google/Android Pay, Samsung Pay almost twice as popular in Norway (38%) and 16% Sweden (40%) compared to Denmark (21%) and 12% Finland (19%). 17% 13% For other banking activities conducted on a 25% monthly basis, the country differences are Other smaller; although Norwegians (72%) and 6% Swedes (73%) tend to be more digital across 4 % the board compared to their Danish (56%) and 4% Finnish (68%) counterparts. Norwegians are 7% also keen mobile payers in public transport 7% (42%) each month compared to the Nordic Nordic average Finland Norway average of 25%. Finally, Finns are less than half Sweden Denmark as likely than the Nordic average (20% versus Base: All adults 18-75 who have used their phone to purchase a 41%) to make in-shop purchases using their product or service: Weighted base (1495), Finland (294), Norway mobile phones. (274), Sweden (611), Denmark (316). How would you like to pay? consumers (72%) on average use their credit Consumers in the Nordic countries are usually cards via their smartphones, followed by online keen on adopting new technologies, which money transfer/payment providers (46%), online is certainly helping mobile payments along. banking apps (38%) and Apple, Android and However, the system of credit and debit cards Samsung Pay (16%) (Figure 15). has been around in the Nordics for a long time, and now that contactless credit or debit Most other payment methods are underpinned card payments are possible, most consumers by a credit or debit card, although some online may not be as eager to transition to a mobile money transfer/payment providers allow you payment system. to transfer money into an account registered with the provider. The result is that banks and When Nordic consumers make online purchases other traditional players still control most of the using their smartphones, credit and debit cards consumer-side payments and related personal are overwhelmingly the most common payment information. method. More than seven out of 10 of Nordic Digital Consumer Trends | Section 2 27
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