Abstract
Overview
Facing a plateau in the adoption of online banking, banks and credit unions are presented with the challenge of devising innovative ways of moving more consumers online, increasing the frequency of online banking usage among existing users and engaging users in additional online banking services that benefit both bank and consumer, such as online bill pay, paperless statements and online banking personal financial management. In this report, Javelin identifies three online behavior-based segments derived from extensive Javelin data that banks and credit unions can use as a base in defining better targeted efforts at increasing desirable behavior.
Primary Questions
- What are the primary behavioral segments FIs can identify in their customer base?
- How can FIs use behavior-based segments to increase desirable online banking behaviors among their customers?
- What are the best ways to motivate consumers who bank and pay bills online to remain customers with their primary FI?
- How can banks increase the frequency of usage of online banking and encourage adoption of additional profitable online services among basic online bankers?
- What will banks and credit unions need to address when convincing non-online bankers to come online?
Table of Contents
- Overview
- Primary Questions
- Findings and Analysis
- Create Behavior-based Segments for Actionable Means to Get Consumers Online
- How can these segments be identified within a bank or credit union' s customer base?
- Which customers do these segments represent?
- Superstar Financial Managers Require Advanced, Easy-to-Use Capabilities
- Who are the Superstar Financial Managers?
- The benefits: Active, satisfied online bankers
- The challenges: High standards and high expectations for their PFI
- Locking in Superstar Financial Managers
- Online banking personal financial management for increased loyalty and migration to bill pay
- Account alerts motivate bank bill pay and paperless statements
- Who are the Superstar Financial Managers?
- Habitual Bankers Need Personalized Service in All Channels
- Who are the Habitual Bankers?
- The benefits: Untapped potential to convert to active online bankers
- The challenges: Proactive, individualized, one-on-one interaction required
- Locking in Habitual Bankers
- Online services education across multiple channels
- Beyond online servicing to reinforcement through multiple channels
- Managing finances through alerts
- Who are the Habitual Bankers?
- Online Averse Bankers Require Education to Allay Fraud Concerns and Move
them Online
- Who are the Online Averse Bankers?
- The benefits: A willingness to interact and learn
- The challenges: Fears and misconceptions
- Locking in Online Averse Bankers
- Bringing Online Averse Bankers online through security education in multiple channels
- Using the mobile channel to demonstrate remote access value and protection
- Who are the Online Averse Bankers?
- Appendices-Additional Data about Online Banking Behavior Segments
- Methodology
- Related Research
Table of Figures
- Figure 1: Summary of Behavior Segments Identified in the Report
- Figure 2: Motivations for Choosing a New Financial Institution
- Figure 3: Rates of Usage for Financial Banking Products
- Figure 4: Likelihood to Remain a Customer if Offered Online Banking PFM
- Figure 5: Preference for Type of Financial Alert
- Figure 6: Rates of Usage of Traditional and Electronic Channels for Banking Activities
- Figure 7: Tenure of Online Banking Usage
- Figure 8: Motivations for Switching Financial Institutions
- Figure 9: Screenshot of WaMu' s Online Banking Video Demo
- Figure 10: Screenshot of Bank of America' s Click-to-Chat Capability
- Figure 11: Opinions Regarding Paper Turn Off for Statements and Bills
- Figure 12: Motivations for Viewing Bills Online
- Figure 13: Reasons for Not Banking Online
- Figure 14: Features Valued Most in Online Banking Personal Financial Management
- Figure 15: Change in Online Behavior Given Concern about Identity Theft Threats
- Figure 16: Screenshot of JPMorgan Chases' Security Center
- Figure 17: Rates of Behavior Changes since Beginning to Use Online Banking
- Figure 18: Rating of FI Performance in Protecting Consumers Who Bank Online
- Figure 19: Preference for Viewing and Paying Bills Online
- Figure 20: Opinions Regarding Paper Turn Off
- Figure 21: Rates of Online and Offline Receipt of Statements and Bills
- Figure 22: Change in Online Behavior Given Identity Theft Related Threats
