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| Online banking adoption slows; online bill-pay momentum weakens |
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November 15, 2011
Financial institutions must take steps to help online banking and bill pay regain momentum thereby increasing revenue and reducing costs, according to a Javelin Strategy & Research report. Javelin’s forecast indicates that online banking has hit its saturation point among consumers, but consumers are more active, as weekly use has nearly doubled since 2005. Online bill pay has weakened for both FIs and billers. However, Javelin forecasts that FIs’ bill-pay sites will overtake the biller-direct model in 2015 and cautions FIs against threats from emerging one-stop bill-pay sites. “We live in a digital era where the financial services industry can move money milliseconds after we swipe a credit or debit card,” says Mark Schwanhausser, senior analyst, Multichannel Financial Services at Javelin. “However, FIs leave Americans with little choice but to remain in a paper-based era when it comes to tracking how much money they have and how much they owe. Many Americans are still lost in a paper shuffle of monthly statements, calculators and checks.” Javelin’s study draws on an analysis of consumers based on whether they use online banking, mobile banking, and pay bills through their FI. Moneyhawks—the consumers who do use all three—are the key consumer group driving the demand for these online and mobile services and shaping the future of banking. But not all FIs can meet their standards. Javelin research shows that almost two in three Moneyhawks flock to the four largest banks to conduct their online and mobile banking and bill pay. The pressure is on for community banks to upgrade their capabilities as customers increasingly expect 24/7 access and services. Javelin advises how these smaller banks can compete with the online banking and bill pay resources of larger banks. “Almost half of Moneyhawks turn to Bank of America and Chase because they feel these two banks alone have the best mix of tools and services available,” says James Van Dyke, president and founder of Javelin. “But our research shows that consumers are still seeking a better solution. The field is actually wide-open for FIs to create an online experience that truly meets their customers’ needs.” The Javelin report was based on longitudinal surveys conducted with more than 10,000 consumers. https://www.javelinstrategy.com/news/1269/92/Online-Banking-Adoption-Slows-But-Consumers-Are-More-Active-Online-Bill-Pay-Momentum-Weakens/d,pressRoomDetail |
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