Product Type: Market Research Report
Published by: Javelin Strategy & Research
Published: June 2007
Product Code: R3424-39Description With over half of the U.S, household population now banking online, online banking and bill pay have finally achieved mainstream acceptance. Over the past three years online banking and bill pay adoption have plateaued, and 38 million consumers are less likely to recommend online banking in 2007 as in 2005. Javelin has used five years of longitudinal data to create a forecast model to deliver projections of adoption through 2012 for online banking, consolidated bill presentment, and online bill pay (FI and biller-direct). Javelin also explores the benefits of green banking and its impact on consumer behavior and adoption. Using quantitative consumer research and case studies of select top ten U.S. financial institutions Javelin has clearly outlined the next steps for FIs and vendors to reinvigorate growth, adoption, and profitability of the online channel.Table of Contents - OVERVIEW
- PRIMARY QUESTIONS
- FINDINGS AND ANALYSIS
- EXECUTIVE SUMMARY
- ONLINE BANKING AND BILL PAY GROWTH FORECAST 2003-2012
- 5 Year Forecast-Online Banking and Bill Pay Growth Forecast 2003-2012
- Electronic Bill View and Payment Hits Plateau
- Still Popular, But Downward Trend Noted in Consumer Preference for FI Bill Pay
- For Many Consumers, the Word Is Getting Out: Online Banking Hinders ID Theft
- Online Billing Losing "New and Exciting" Factor; 20% Fewer "Very Likely" to Recommend (2005-2007)
- PERSONAS OF ONLINE BANKERS VERSUS NON-ONLINE BANKERS
- Online Bankers Have Many More Touches with Banks: Equals Opportunity
- Who Are the Holdouts? People Preferences and ID Fraud Fears Deep-Rooted
- Online Bankers: The Three Keys to Adoption
- Alerts & Consolidated Bill Pay Would Inspire Activity in 50% of Online Bankers
- Online and Offline Bankers Display Contradictory Profiles
- Online Bankers Prefer "My FI" More Than 2:1 for Paying Bills Online
- GREEN BANKING
- Communicating Environmental Benefits in a Customer-Friendly Way
- The Tipping Point for Paperless: Better Records
- Cost Savings Can Be Found (and Not Just by Converting Off-Liners to On)
- 56% of Consumers Now View Check Images as Desirable-a Polar Shift
- CONVENIENCE
- Going Mobile
- Expedited Payments
- CONTROL/FINANCIAL OPTIMIZATION
- Personal Financial Management
- Focus on Consumers' Top Valued Features for Success in Online Banking PFM
- FIs' Top Online Protection Rating Falls 13%; Average Rating Rises
- Consumer's Guide to Improving FI Online Protection Ratings
- Consumers Desire a Supermarket of Alerts
- Interactive Financial Messaging TM: The Next Stage-Prohibitions and Review & Release Functions
- Shared Secrets and Computer Recognition Tops for All
- BANK COMPARISONS
- Where Do Customers Pay their Bills?
- WaMu, Chase and Wells Top the Online Safety Ratings
- Good Online Safety Ratings Motivate Behavior: Chase, BofA and Wells Enjoy Outstanding Increases in Online Banking in Response to Consumer ID Worries
- Comparison of Top Six Online Banks by Attributes
- DEMOGRAPHICS-AGE
- No Mystery Here: Younger You Are, the More Likely to Have Tried Online Banking
- The Eldest Clients Rank Bank's Online Protection Performance the Highest-then Why Aren't You Banking Online?
- "Saving Time" Doesn't Resonate with Older Bankers
- DEMOGRAPHICS-INCOME
- Higher Income Levels Show Greater Online Banking Penetration
- The Poor (Under $15K) Have Different Reasoning for Not Banking Online
- Highest Online FI Bill Pay Penetration Rates Are for Consumers $100K -$149K
- Paper Turnoff: Middle Incomes Fear Losing Control-Want Better Records
- DEMOGRAPHICS-ETHNICITY
- Caucasians Lag in Online Banking Acceptance
- 30% of Asians who "Just Haven't Gotten Around to it Yet" Represent Opportunity
- Different Ethnicities Motivated By Distinct Online Bill Payment Features
- DEMOGRAPHICS-GENDER
- Women Want Control; Men Time
- Window of Opportunity: Gap in Bill Pay Adoption Rates Will Close Quickly
- Men Desire Integration into Financial Tools; Women Want Bill Alerts
- APPENDIX
- RELATED RESEARCH
- Table of Figures
- Figure 1: Total Number of Households Banking, Viewing, or Paying Bills Online 2003-2012
- Figure 2: Consumers Conducting the Following Bill Payment Activities Within the Last 12 Months
- Figure 3: Consumers' Preference to View and Pay Online Bills (Longitudinal 4 Years)
- Figure 4: Consumers' Reactions in Online Banking Transactions in
- Figure 5: Would You Recommend Online Banking? (Longitudinal 3 Years)
- Figure 6: How Online Bankers' Usage Has Changed Most Since First Using Online Banking
- Figure 7: Reasons Why Certain Consumers Do Not Bank Online (Longitudinal 5 Years)
- Figure 8: Why Did You First Start Banking Online? (Longitudinal 3 Years)
- Figure 9: Consumers' Motivation to View More Bills Online (by Type of Banker)
- Figure 10: Criteria for Selecting a New Financial Services Provider (by Type of Banker)
- Figure 11: Where Consumers Would Most Prefer to View and Pay Online Bills
- Figure 12: Consumers' Opinions on Paper Statement Turnoff (by Type of Banker)
- Figure 13: How Do Consumers Receive the Following…?
- Figure 14: Consumers' Opinions on Viewing Electronic Check Images (Longitudinal 3 Years)
- Figure 15: Mobile Internet Users' Preferred Mobile Banking Transactions
- Figure 16: Expedited Payments Fee Revenue Forecast 2004-2009
- Figure 17: PFM Offering's Effect on Likelihood to Remain a Customer (by Type of Banker)
- Figure 18: Consumers' Most Valued Features for Managing Finances
- Figure 19: Consumers' Ratings of Their FIs' Online Protection Performance (Longitudinal 2 Years)
- Figure 20: Security Methods Consumers Would Like Their FIs to Implement (by Type of Banker)
- Figure 21: Alerts That Are Valuable to Consumers (Longitudinal 3 years)
- Figure 22: Applying the Javelin "Prevention and Detection" Model to IFM™
- Figure 23: Consumers' Preferred Methods of Authentication
- Figure 24: Top 15 Online FIs (by Numbers of Online Bill Payers)
- Figure 25: Rating of Banks' Online Banking Safety Performance (by Top Six Online Banks)
- Figure 26: Consumers' Response to ID Threats in Online Banking Transactions
- Figure 27: Feature Comparison of Top Six Online Banks
- Figure 28: Last Conducted Online Banking (by Age)
- Figure 29: Rating of Bank's Online Protection Performance (by Age)
- Figure 30: Most Important Reasons for Beginning to Use Online Banking (by Age)
- Figure 31: Last Conducted Online Banking (by Income)
- Figure 32: Reasons for Not Banking Online (by Income)
- Figure 33: Paid a Bill Online Through Bank or Credit Union's Bill Pay Service (by Income)
- Figure 34: Opinions on Paper Statement Turnoff (by Income)
- Figure 35: Last Conducted Online Banking (by Ethnicity)
- Figure 36: Reasons Why Consumers Do Not Bank Online (by Ethnicity)
- Figure 37: Motivation to Pay More Bills Online (by Ethnicity)
- Figure 38: Reason for Beginning to Bank Online (by Gender)
- Figure 39: Last Time Paid a Bill Online Through FI's Web Site or Bill Pay Service (by Gender)
- Figure 40: Motivation to Pay More Bills Online (by Gender)
- Figure 42: Viewed Electronic Image of a Check
- Figure 43: Consumers' Ratings of Their Banks' Online Protection Performance
- Figure 44: First Began Banking Online (by Top 6 Online Banks)
|
|
