2007 Online Banking and Bill Payment: Trends, Forecasts, and Strategies for Reinvigorating Growth and Adoption - Market Research Reports

Contents:

OVERVIEW

PRIMARY QUESTIONS

FINDINGS AND ANALYSIS

EXECUTIVE SUMMARY

ONLINE BANKING AND BILL PAY GROWTH FORECAST 2003-2012
5 Year Forecast—Online Banking and Bill Pay Growth Forecast 2003-2012
Electronic Bill View and Payment Hits Plateau
Still Popular, But Downward Trend Noted in Consumer Preference for FI Bill Pay
For Many Consumers, the Word Is Getting Out: Online Banking Hinders ID Theft
Online Billing Losing “New and Exciting” Factor; 20% Fewer “Very Likely” to Recommend (2005-2007)

PERSONAS OF ONLINE BANKERS VERSUS NON-ONLINE BANKERS
Online Bankers Have Many More Touches with Banks: Equals Opportunity
Who Are the Holdouts? People Preferences and ID Fraud Fears Deep-Rooted
Online Bankers: The Three Keys to Adoption
Alerts & Consolidated Bill Pay Would Inspire Activity in 50% of Online Bankers
Online and Offline Bankers Display Contradictory Profiles
Online Bankers Prefer “My FI” More Than 2:1 for Paying Bills Online

GREEN BANKING
Communicating Environmental Benefits in a Customer-Friendly Way
The Tipping Point for Paperless: Better Records
Cost Savings Can Be Found (and Not Just by Converting Off-Liners to On)
56% of Consumers Now View Check Images as Desirable-a Polar Shift

CONVENIENCE
Going Mobile
Expedited Payments

CONTROL/FINANCIAL OPTIMIZATION
Personal Financial Management
Focus on Consumers’ Top Valued Features for Success in Online Banking PFM
FIs’ Top Online Protection Rating Falls 13%; Average Rating Rises
Consumer’s Guide to Improving FI Online Protection Ratings
Consumers Desire a Supermarket of Alerts
Interactive Financial Messaging TM: The Next Stage—Prohibitions and Review & Release Functions
Shared Secrets and Computer Recognition Tops for All

BANK COMPARISONS
Where Do Customers Pay their Bills?
WaMu, Chase and Wells Top the Online Safety Ratings
Good Online Safety Ratings Motivate Behavior: Chase, BofA and Wells Enjoy Outstanding Increases in Online Banking in Response to Consumer ID Worries
Comparison of Top Six Online Banks by Attributes

DEMOGRAPHICS-AGE
No Mystery Here: Younger You Are, the More Likely to Have Tried Online Banking
The Eldest Clients Rank Bank’s Online Protection Performance the Highest-then Why Aren’t You Banking Online.
”Saving Time” Doesn’t Resonate with Older Bankers

DEMOGRAPHICS-INCOME
Higher Income Levels Show Greater Online Banking Penetration
The Poor (Under $15K) Have Different Reasoning for Not Banking Online
Highest Online FI Bill Pay Penetration Rates Are for Consumers $100K -$149K
Paper Turnoff: Middle Incomes Fear Losing Control-Want Better Records

DEMOGRAPHICS-ETHNICITY
Caucasians Lag in Online Banking Acceptance
30% of Asians who “Just Haven’t Gotten Around to it Yet” Represent Opportunity
Different Ethnicities Motivated By Distinct Online Bill Payment Features

DEMOGRAPHICS-GENDER
Women Want Control; Men Time
Window of Opportunity: Gap in Bill Pay Adoption Rates Will Close Quickly
Men Desire Integration into Financial Tools; Women Want Bill Alerts

APPENDIX

RELATED RESEARCH

Table of Figures
Figure 1: Total Number of Households Banking, Viewing, or Paying Bills Online 2003-2012
Figure 2: Consumers Conducting the Following Bill Payment Activities Within the Last 12 Months
Figure 3: Consumers’ Preference to View and Pay Online Bills (Longitudinal 4 Years)
Figure 4: Consumers’ Reactions in Online Banking Transactions in
Figure 5: Would You Recommend Online Banking? (Longitudinal 3 Years)
Figure 6: How Online Bankers’ Usage Has Changed Most Since First Using Online Banking
Figure 7: Reasons Why Certain Consumers Do Not Bank Online (Longitudinal 5 Years)
Figure 8: Why Did You First Start Banking Online? (Longitudinal 3 Years)
Figure 9: Consumers’ Motivation to View More Bills Online (by Type of Banker)
Figure 10: Criteria for Selecting a New Financial Services Provider (by Type of Banker)
Figure 11: Where Consumers Would Most Prefer to View and Pay Online Bills
Figure 12: Consumers’ Opinions on Paper Statement Turnoff (by Type of Banker)
Figure 13: How Do Consumers Receive the Following…?
Figure 14: Consumers’ Opinions on Viewing Electronic Check Images (Longitudinal 3 Years)
Figure 15: Mobile Internet Users’ Preferred Mobile Banking Transactions
Figure 16: Expedited Payments Fee Revenue Forecast 2004-2009
Figure 17: PFM Offering’s Effect on Likelihood to Remain a Customer (by Type of Banker)
Figure 18: Consumers’ Most Valued Features for Managing Finances
Figure 19: Consumers’ Ratings of Their FIs’ Online Protection Performance (Longitudinal 2 Years)
Figure 20: Security Methods Consumers Would Like Their FIs to Implement (by Type of Banker)
Figure 21: Alerts That Are Valuable to Consumers (Longitudinal 3 years)
Figure 22: Applying the Javelin “Prevention and Detection” Model to IFM™
Figure 23: Consumers’ Preferred Methods of Authentication
Figure 24: Top 15 Online FIs (by Numbers of Online Bill Payers)
Figure 25: Rating of Banks’ Online Banking Safety Performance (by Top Six Online Banks)
Figure 26: Consumers’ Response to ID Threats in Online Banking Transactions
Figure 27: Feature Comparison of Top Six Online Banks
Figure 28: Last Conducted Online Banking (by Age)
Figure 29: Rating of Bank’s Online Protection Performance (by Age)
Figure 30: Most Important Reasons for Beginning to Use Online Banking (by Age)
Figure 31: Last Conducted Online Banking (by Income)
Figure 32: Reasons for Not Banking Online (by Income)
Figure 33: Paid a Bill Online Through Bank or Credit Union’s Bill Pay Service (by Income)
Figure 34: Opinions on Paper Statement Turnoff (by Income)
Figure 35: Last Conducted Online Banking (by Ethnicity)
Figure 36: Reasons Why Consumers Do Not Bank Online (by Ethnicity)
Figure 37: Motivation to Pay More Bills Online (by Ethnicity)
Figure 38: Reason for Beginning to Bank Online (by Gender)
Figure 39: Last Time Paid a Bill Online Through FI’s Web Site or Bill Pay Service (by Gender)
Figure 40: Motivation to Pay More Bills Online (by Gender)
Figure 42: Viewed Electronic Image of a Check
Figure 43: Consumers’ Ratings of Their Banks’ Online Protection Performance
Figure 44: First Began Banking Online (by Top 6 Online Banks)