Javelin Report Finds Financial Crisis Makes It Crucial for Banks to Target Online Channel

2008-11-19 02:38:02 -

Javelin Strategy & Research (cts.businesswire.com/ct/CT"id=smartlink&url=http%3A%2F%2Fwww ..), the leading independent provider of quantitative and qualitative research focused exclusively on financial services, today announced the release of its annual Online Banking and Bill Payment report to its subscribers with public availability planned for later this week.
Javelin"s comprehensive study forecasts growth rates for online banking and bill payment services through 2013 and provides strategic recommendations to expand online channels. The report targets financial institutions, online-banking platform providers, online-banking vendors, and technology vendors. Information can be found at: cts.businesswire.com/ct/CT"id=smartlink&url=http%3A%2F%2Fwww ...
"To navigate today"s economic challenges, banks can improve online banking and bill payment services to grow assets and deepen customer loyalty," said Javelin"s Managing Partner and Research Director, Mary Monahan. "Online bankers are more affluent and younger, frequent users of "sticky" services and active in safeguarding their accounts."
Online Banking and Bill Payment Forecasts
Javelin forecasts that the growth rate for online banking adoption will increase 4.6% annually through 2013, when 83 million households will be banking online. However, the report identifies bank bill payment services, which are only at 49% penetration, as the pivotal opportunity for banks to expand their online channel, and projects growth at 5.6% annually through 2013 reaching 45 million households.
"Customers expect financial institutions to provide a robust, feature-rich online-banking platform to better manage, monitor and move their money on a daily basis," said Mark Schwanhausser, Javelin"s multi-channel financial services analyst. "With less than half of online bankers currently using bill payment services, banks have a clear opportunity to drive growth in this area because customers want to consolidate and simplify their financial lives."
Key Findings and Recommendations:
- Consolidation is rapidly reshaping the online-banking market. As a result of recent acquisitions, three giant banks " Bank of America, Wells Fargo and JPMorgan Chase " will control an astounding 39% of the online-banking market, up from 25%.
- Market winners will design and promote online banking based on customer-driven architecture. Benefits include a return-on-investment in terms of increased loyalty, reduced costs, fee income, cross-selling opportunities and fraud-prevention savings.
- To gain share from third party billers, upgrade bill-viewing and bill-payment platforms to make the online experience seamless for customers. Online banking user experiences are key to preparing for the mobile future.
- Promoting electronic statements and making it easy to turn paper statements off will save money and reduce fraud.
Learn More About Javelin"s Online Banking and Bill Payment Forecast
Subscribers to Javelin"s multi-channel financial services research coverage automatically received this report. Those interested in learning more about Javelin"s subscription and custom research services may call +1.610.450.5909, email mailto:sales@javelinstrategy.com.
To request a copy of the research or to arrange an interview with Mary Monahan or Mark Schwanhausser, please contact Kathleen McCabe at +1.925.225.9100 extension 15 or mailto:k.mccabe@javelinstrategy.com.
Research Methodology
Javelin created an online banking and bill payments forecast model based on primary and secondary sources of consumer and census data. The primary data was collected online from a random sample of respondents in March 2008. The survey targeted 2,350 respondents based on nationally representative proportions of gender, age and income. Overall margin of sampling error is +/-2.02 percentage points at the 95% confidence level.
Companies Mentioned in Javelin"s Online Retail Payments Forecast Report
Companies mentioned or analyzed by Javelin in the report, include AOL, Bank of America, BB&T, Blackberry (RIM), Box.net, Buxfer, CheckFree, Citizens Bank, Digital Insight, eGistics, JPMorgan Chase, Jwaala, Microsoft, Morgan Street, Mozy, PNC Bank, Quicken, S1, U.S. Postal Service, Vault Street, Wachovia, Washington Mutual, Wells Fargo, Wesabe, and Yodlee.
About Javelin Strategy & Research
Javelin is the leading independent provider of quantitative and qualitative research focused exclusively on financial services topics. Based on the most rigorous statistical methodologies, Javelin conducts in-depth primary research studies to pinpoint dynamic risks and opportunities. Javelin helps its clients achieve their initiatives through three service offerings, including syndicated research subscriptions, custom research projects and strategic consulting. Javelin?s client list includes some of the largest banks, credit unions, card issuers, and technology enterprises in the financial services industry.

Javelin Strategy & Research

Kathleen McCabe, +1-925-225-9100 ext. 15

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mailto:k.mccabe@javelinstrategy.com