Product Type: Market Research Report
Published by: Javelin Strategy & Research
Published: August 2009
Product Code: R3424-95Description Financial institutions need to be aware that in the midst of this banking crisis, consumers are unusually sensitive to fees and are prone to switching banks. Seven years of Javelin consumer survey data underscore the necessity of designing banking products and services to serve the customers’ craving for financial control, as 8 out of 10 online households now bank online. The industry has made laudable strides in bringing customers to their Web sites to bank and pay bills. For the first time, slightly more consumers paid at bank sites than at biller-direct sites. Yet many banks and credit unions have been slow to upgrade, creating a wide gap in online capabilities and usage between the nation’s four biggest banks - Bank of America, Citi, JPMorgan Chase and Wells Fargo - and smaller regional, community banks and credit unions.
Primary Questions
- How fast will online banking and bill-pay adoption grow over the next five years?
- How active are users of online-banking and bill-pay services?
- Can banks use online-banking and bill-pay services to boost revenues, increase customer loyalty, reduce costs and create cross-selling opportunities?
- Can mid-size banks and credit unions boost the performance of their online-banking services to better compete with giant national financial institutions?
- What services can make online banking more appealing to consumers?
Table of Contents - Overview & Key Findings
- Methodology
- Executive Summary
- Key Recommendations
- Five-Year Forecast for Online Banking, Bill Presentment and Bill Pay
- Households vs. Consumers
- This is an Unusual Moment in Banking History
- Trends in Online Banking
- Most Americans Now Bank Online Every Week
- Reasons for Holding Out Are Concentrating
- Nearly Half of Community Bank Customers See No Value in Online Banking
- Online Banking: A Banking Basic
- Trends in Online Bill Pay
- Percentage of Consumers Who Paid a Bill Online in Previous Month
- How Many Consumers Used a Bank or Biller?
- Bank Bill Pay Reaches Milestone at 50% of Online Households
- Consumer Preference on Bill Pay is Flat
- Banks and Billers Are Running Neck and Neck With Regular Bill Payers
- National Banks Dominate in Bill-View, Bill-Pay Arena
- Key Targets for Bill Pay: Tech-savvy and Affluent Customers
- Appeal of Bill-pay Simplicity Should Extend to Non-Bank Bills
- Bill Pay is Eating into Snail Mail
- Where Banks Have the Edge Over Billers
- Where Billers Have the Edge Over Banks
- National Banks Hold Strong Edge Over Smaller Banks, But Credit Unions Hold their Own
- Community Bank Customers Are Much More Likely to Pay by Check
- Where Does Gen Y Generally Prefer to Pay?
- What’s the Top Motivator to Pay More Bills Online?
- Features, Trends and Market Segments to Target in 2009-10
- Personal Finance Management Tools
- How Javelin Scored Seven Personal Finance Management Vendors
- Table of Contents
- Online Account Opening
- High Failure Rates Leave a Bad First Impression
- Green Banking and the Paperless Push
- Most Consumers Still Cling to Paper Statements
- Targeting Gen Y
- Gen Y Already is Developing Online-Banking Pay Habit
- Expedited Payments
- Appendix
- Related Research
- Companies Mentioned
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