2013 Online Banking And Bill-Payment Forecast: 29 Million Holdouts Primed For FI Bill Pay
- ID: 2641966
- September 2013
- Region: United States
- 28 Pages
- Javelin Strategy & Research
Javelin's 11th annual online banking and bill-pay forecasts reinforce that adoption will remain unacceptably flat through 2018 unless financial institutions take action to upgrade services, counter misconceptions about paying bills at FIs, and specifically target 29 million Americans who are only one step away from paying bills at their bank or credit union.
The priority list of holdouts is topped by a newly identified segment of nearly 11 million Digital Drifters, defined as consumers who bank online and use mobile banking but do not pay bills at their primary FI. This report identifies four upgrades and four marketing messages that will be most influential to win over this young, tech-savvy, mobile-minded segment of consumers who crave control as they monitor and manage their growing financial resources.
- What is the five-year outlook for online banking and bill payments at financial institutions and at biller websites?
- How can the banking industry spur growth in bill payments at FIs?
- Why are mobile expectations and mobile banking the key to boosting adoption of bill pay at FIs?
- Are giant U.S. banks beating smaller banks and credit unions in the battle for supremacy?
- Who are the Digital Drifters, how do they compare with the coveted Moneyhawks™ — and why should they be targeted?
- What investments and marketing messages will be most effective with Digital Drifters?
Data measuring adoption of online banking by consumers is based on data collected online from 5,641 consumers in March 2013. The overall margin of sampling error is ±1.30 percentage points at the 95% confidence level. The survey targeted respondents based on representative proportions of gender, age, income, and ethnicity compared with the overall U.S. online population.
Secondary data from public sources such as the U.S. Census Bureau and the Bureau of Labour Statistics was incorporated in the forecasts.
Forecasts are based on household adoption. In 2013, the U.S. population is estimated at 317 million people. That includes 242 million adults, 122 million households, and 99 million households that are online. On average, there are about 2.6 people per household. Javelin also collects online banking data using a base of all consumers for comparison purposes.
Longitudinal comparisons are based on data collected online from the following random samples, with the sampling error at the 95% confidence level:
- 5,034 consumers in March 2012, with an overall margin of sampling error of ±1.38 percentage points.
- 5,102 consumers in March 2011, with an overall margin of sampling error of ±1.37 percentage points.
- 5,211 consumers in March 2010, with an overall margin of sampling error of ±1.36 percentage points.
- 2,779 consumers in April 2009, with an overall margin of sampling error of ±1.86 percentage points.
- 2,350 consumers in March 2008, with an overall margin of sampling error of ±2.02 percentage points.
- 2,800 consumers in March 2007, with an overall margin of sampling error of ±1.85 percentage points.
The Moneyhawks™ Segmentation
Javelin's Moneyhawks segmentation examined consumers based on behaviors for online banking, bill payment, and mobile banking. To draw starker conclusions, Javelin focused on the 79% of consumers who fall into five segments delineated by defined banking behaviors. For example, Moneyhawks are defined as customers who have used their primary FI to bank online and pay bills in the past 30 days, and to bank on a mobile device in the past 90 days. (See Figure 1.) The report does not examine the 21% of consumers who exhibit infrequent or inconsistent use of online banking, bill pay, or mobile banking. SHOW LESS READ MORE >
Overview and Primary Questions
2013 Forecast if Bankers Fail to Act: Flat, Flat, and Continued Flat
Why Stagnant Growth Poses a Bigger Problem for Smaller Institutions
Million Americans Are Primed to Pay Bills at Banks and Credit Unions
Introducing the Digital Drifters
Table of Figures
Figure 1: Methodology: Behavior Definition Used to Segment Consumers
Figure 2: Forecast: Online Banking and Bill Pay Forecast (2007-2018)
Figure 3: Weekly Usage of Online and Mobile Banking (by Size of FI)
Figure 4: Javelin Outperform: Weekly Usage of Online Banking by FI
Figure 5: Monthly Online Bill Payment Usage (by Size of FI)
Figure 6: Potential Gains in Total FI Bill-Pay Users
Figure 7: FI Bill Pay Forecast Scenarios Through 2018 (in Households)
Figure 8: Digital Drifters and Moneyhawks at a Glance
Figure 9: Digital Drifters Important Factors in Choosing a Bill-Payment Method
Figure 10: Top Four Performance Gaps (Biller Direct vs. FI Bill Pay vs. Third-Party Services)
Figure 11: Four Performance Gaps That FIs Can Close More Easily
Figure 12: Forecast for Households Banking Online (2007–2018)
Figure 13: Forecast for Households Paying Bills at FI Websites (2007–2018)
Figure 14: Forecast for Households Paying Bills at Biller Websites (2007–2018)