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Digital Banking -- Everybody Wins

Digital Banking -- Everybody Wins

The 13th annual Fiserv Consumer Trends survey is clear about a couple of things, interest in digital banking is high and people love it.

Digital banking use grew from 79 million U.S. households in 2011, to 86 million today, and 35 million households are taking advantage of mobile banking, compared to 18 million in 2011. This is good news for banks. Fiserv’s research found that those who use digital banking are more likely to use other revenue-generating services like savings, loans and credit products.

One of the most surprising findings from the survey, says Steve Shaw, vice president, strategic marketing at Fiserv, "Consumers view their online banking site very favorably compared to the retail site they used most in the past three months."

A second attention getter: 75% of those over 60 polled use online banking.

As for what was different this year, not only was there a significant increase in mobile banking, but more interest in bill pay and e-pay services, especially among young folk. Nearly half of millennial nonusers and more than a third of Gen X nonusers say they want to try financial institutional bill pay. Similarly, the number of those interesting in receiving e-bills grew from one-quarter to one-third between 2013 and 2014.

75% of those over 60 polled use online banking.

What does all this mean? "Digital banking is more essential to consumers than ever before," says Shaw.

Despite growing popularity, the survey showed a noted lack of awareness among consumers. They aren’t in the know about what services are available from their financial institutions.

"People should look into what products are services are offered by their bank or credit union. They may be missing out on significant conveniences, such as P2P payment, or bill pay services that are available free of charge," says Shaw.

Financial institutions though, have to play their cards right if they want to maximize the benefits of digital banking. Shaw has a to-do list of sorts.

"They should focus digital product enhancements on just-in-time and just-in-case offerings to enable the type of experience consumers desire," says Shaw.

same day posting of online banking transactions are highly sought after by those polled.

For example, same day posting of online banking transactions are highly sought after by those polled. Security alerts, bill reminders and balance alerts were all on the wish list of smartphone users.

Financial institutions also need to clear up misperceptions. "Highlight that mobile banking is secure. Clarify that financial institution bill pay does not require automatic payments and that users can pay anyone," says Shaw.

Promote, promote, promote. The financial institution’s site should tout the availability of e-bills and P2P payments, says Shaw. How it works should also be explained. Nearly a quarter of those surveyed say they are interested in using P2P, but lack of knowledge and misunderstandings about the service prevent them from using it.

Take advantage of opportunities. "Market the most salient value propositions to current and potential users; market additional services to high-potential existing users. Leverage existing data like income, age, online service use, to target solutions and offer the right product mix to the right customer at the right time. Emphasize benefits and the ability of product and services to overcome barriers."

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Anonymous   |     |   Comment #1
No thanks!
Anonymous   |     |   Comment #2
Since Internet banks have the best rates for the most part, you are missing out then.
Anonymous   |     |   Comment #3
It is only the difference in rates that control/matter, i.e. not the max or min but what is available.  Knowing "your" banker is a lost art.
Anonymous   |     |   Comment #6
Sorry  Most bankers do not have your interests in mind.  They are controlled mostly by large corporate controls and rules and try to sell expensive products.  I use the internet to get the highest rates and do many transactions anytime I want . I do withdrawals and deposits at ATM's.  All the small banks near me are now large institutions.  George Baily no longer exists.
Anonymous   |     |   Comment #7
And the democrats and Obama gave the Internet to foreign nations to administer it, good luck in the future, all the accounts will be with $0.00 balance on one of those dreaded mornings when you wanted to pay the bills.
Anonymous   |     |   Comment #9
While I can see the benefits of digital, which I'm assuming on your phone, banking...I find that to be a bit scary. Online from the home computer is one thing, but I've had my phone stolen before and so having all that info on there, even with a passcode, is a bit scary to me.