Category: US

US

comscore Study Reveals growth Trends in Online Bill Payment

Colin Henderson

This far into the internet cycle, these are rapid growth statistics reported by comscore. (Courtesy of PaymentsNews). This despite a slower growth in the last quarter of the year.

comScore Study

comScore found that the number of online banking customers grew to nearly 40 million during Q4 2005, a 27-percent increase over the previous year.  Usage of online bill payment services has grown 36 percent during the same period.

Bill payment in particular shows rapid growth. Stats I have seen elsewhere, suggest Bank of America account for nearly 2/3 of the US Bill Payment market, so this growth will have a lot of BofA in there.

Bank bill payment, which consists of a payment through a retail bank at which a bank account is held, continues to grow at a rapid pace, and currently accounts for nearly one-quarter of all online bill payments. Bank of America led the industry in bank bill payment with 5.1 million active bill pay customers, attracting more than half of total bank bill pay customers in Q4 2005. Further, 34 percent of all online banking customers at Bank of America opt to use the institution's bill payment service, second only to Citibank (37%).

Continue reading “comscore Study Reveals growth Trends in Online Bill Payment”

Canada, Payments, US

Obopay P2P payments, and purchases

Colin Henderson

The third party payments space is heating up, with competition even amongst the newcomers.  This one is in direct competition with Paypal mobile, as well as competing with the US Nacha credit push initiative, and the Canadian Certapay Interac Debit. Relevance to Bankwatch:  Another example of third party disintermediation of money movement.  In plain english we (Banks) are losing control of how customers move their money, and we will eventually lose control of their balances as a result.  Finextra California-based start-up Obopay has launched a mobile payments service that allows customers to make person-to-person fund transfers and using their hand … Continue reading Obopay P2P payments, and purchases

Canada, US

World internet usage – North America flat but shifting to wireless

Colin Henderson

No big surprises in following piece from Cnet  … North America doesn't have much more room to get more online statistically, so how North Americans access is evolving towards wireless.

Relevance to Bankwatch:
Online tenure is a key determinant to online banking confidence and usage, so expect another spike in North American online banking usage in 2 years (2008).

Continue reading “World internet usage – North America flat but shifting to wireless”

EU, US2 Comments

ING Direct – some facts and stats

Colin Henderson

ING continue to revolutionise world banking.

Verkoren said that, in the U.S., the online bank is considering offering a new product, which is being tested under the name "e-orange." …… With the online checking account, customers would be able to do everyday banking transactions, without using paper checks, but "it remains to be seen if customers will give up using those checks,"

In Spain, ING Direct set up a pilot project in September in which it offered customers current accounts for free. The offering, which allows customers to do everyday banking transactions through their ING Direct accounts, and has been successful so far ….prompted large traditional banks to react. Santander Central Hispano SA (STD) was first in dropping service fees

ING Direct is also active in Australia, France, Italy and Austria. Austria is still unprofitable, but its figures are consolidated in the German business, Verkoren said.

Verkoren said entry into Sweden, Portugal and Switzerland was being studied. "And in the long term, we will certainly consider emerging markets in Eastern Europe, Asia and South America," Verkoren said.

About 7,000 full-time employees work for ING Direct, with 114,000 employed worldwide by ING.

Relevance to Bankwatch:

Information only, and a Bank to keep an eye on

FULL ARTICLE:

Continue reading “ING Direct – some facts and stats”

Innovation, US

“Madness!” “Outrageous!” “How’s this help the rich?” (New Washington Mutual campaign)

Colin Henderson

So even though their web explanation isn’t clear, this advertising campaign to support WAMU’s new account is brilliant, and should resonate with consumers.

This is what I would have expected from WAMU.

Relevance to Bankwatch:

Banks have a long way to go to truely think and act in the best interests of consumers. Thinking like a bank is not how you get inside the minds of consumers. Time to clean out some of the traditional banker types in HQ.
Washington Mutual Launches National Advertising Campaign in Support of Its New WaMu Free Checking(TM) Account, Stirs Up the Industry

SEATTLE–(BUSINESS WIRE)–March 13, 2006–Washington Mutual, Inc. (NYSE:WM) Humorous Approach Takes on ‘Stodgy’ Banking Industry to Cries of ‘Madness,’ ‘This is Outrageous'”Madness!” “Outrageous!” “How’s this help the rich?”

There hasn’t been this much commotion in the marbled halls of banking since the bars were removed from teller cages. What’s got old-fashioned bankers from NYC to LA chomping their cigars to a nub?

Washington Mutual’s at it again.

The bank today launches a national advertising campaign supporting a new free checking account that’s got bankers (at least the ones in the ads) fuming over the unprecedented bundle of free features.

Continue reading ““Madness!” “Outrageous!” “How’s this help the rich?” (New Washington Mutual campaign)”

US1 Comment

JD Power survey

Colin Henderson

More on the JD Power survey on banking customer loyalty.

Banking Strategies Blog : Why Can’t Some People Commit?

BY JEFF TAYLOR AND GINA PINGITORE, PH.D. J.D. POWER AND ASSOCIATESFace it. Runaway customers are just not that into your bank. What more can be done to nurture customers who will stay in good times and in bad? This exclusive report on the just-released J.D. Power and Associates Retail Banking Satisfaction StudySM ranks 33 of the largest banks’ success in maximizing customer commitment.

| SYNOPSIS | The inaugural J.D. Power and Associates Retail Banking Satisfaction StudySM ranks 33 of the country’s largest banks on the basis of customer satisfaction and customer commitment. Banks vary within a narrow band on customer satisfaction; the survey found more bank-to-bank variance in customer commitment although banking enjoys a much higher level of committed customers than JDPA finds in other industries. Satisfaction and commitment insights are offered as a means of driving bottom-line results, by employing customer service, product development and operations strategies aimed at retaining and attracting highly committed customers.

Continue reading “JD Power survey”

US

Customer loyalty – online banking customers

Colin Henderson

This new survey comes out with the strongest indication yet (from a research perspective) that online banking influences customer loyalty and bank revenue. J.D. Power and Associates Reports: Banking Customers Prefer to Bank Online More Than Interacting With Branch Tellers The second dimension of the study, which analyzes customer commitment, gives the industry a more complete picture of a customer's revenue potential to the bank. Customer satisfaction is a major aspect influencing customer commitment to the bank, in addition to brand image and a customer's propensity toward loyalty. Of particular note is the willingness to recommend to others. This is … Continue reading Customer loyalty – online banking customers

Innovation, US

Banks that “get it” – Wells Fargo

Colin Henderson

Clearly one of the world leaders, they become the second bank to introduce RSS feeds. Wells RSS http://www.wellsfargo.com/rss/this_date or if you dont know RSS, try this: Wells about RSS https://www.wellsfargo.com/about/this_date Its quite a smart move to introduce this experiment by talking about Wells in history. Its low impact, yet rich and interesting. PS the other bank is below, but not much happening on their feed yet. Go to bmo.com and select “news feeds” in the right margin. Continue reading Banks that “get it” – Wells Fargo

Ranking, US

US Banks ranked by web influence – (1999/2001 approx)

Colin Henderson

Company Stock Symbol Rank Assets in billions of $ Sales in millions of $ Market Capitalization in millions of $ NetValley Benchmark N V B * *Web influence Assets Bank of America BAC 1 5 260.1 50,777 108, 815 10.35 Wells Fargo WFC 2 10 97.5 20,482 55,185 7.69 JP Morgan JPM 3 4 262.1 17,701 18,946 6.29 Key Corp KEY 4 15 73.6 6,568 13,883 4.52 First Union FTU 5 6 157.3 21,543 50,281 4.24 Nation’s Bank N/A 6 3 264.6 N/A N/A 3.92 Chase CMB 7 1 365.5 32,379 62,641 3.46 Citicorp C 8 2 310.9 37,609 117,858 … Continue reading US Banks ranked by web influence – (1999/2001 approx)