September 13, 2011 11:00 AM Eastern Daylight Time
Javelin’s 9th Annual Five-Year Forecast Reveals Trends and Opportunities in Online Banking and Bill Pay
SAN FRANCISCO--(BUSINESS WIRE)--Javelin Strategy & Research’s latest research report — “9th Annual Online Banking and Bill Pay Forecast: Megabanks Dominate Moneyhawks™ While Paperless Adoption and Online Bill Pay Stall” — evaluates online banking and bill pay trends by key consumer segments and analyzes transaction behavior, attitudes, and preferences of customers at large, regional banks, community banks, and credit unions. The Javelin report, based on longitudinal surveys conducted with a total of more than 10,000 consumers, provides specific recommendations on how financial institutions (FIs) can address consumer concerns and reinvigorate online banking and bill pay.
“Almost half of Moneyhawks turn to Bank of America and Chase because they feel these two banks alone have the best mix of tools and services available”
FIs must take steps to help online banking and bill pay regain momentum thereby increasing revenue and reducing costs. Javelin’s forecast indicates that online banking has hit its saturation point among consumers, but consumers are more active, as weekly use has nearly doubled since 2005. Online bill pay has weakened for both FIs and billers. However, Javelin forecasts that FIs’ bill-pay sites will overtake the biller-direct model in 2015 and cautions FIs against threats from emerging one-stop bill-pay sites.
“We live in a digital era where the financial services industry can move money milliseconds after we swipe a credit or debit card,” notes Mark Schwanhausser, Senior Analyst, Multichannel Financial Services at Javelin. “However, FIs leave Americans with little choice but to remain in a paper-based era when it comes to tracking how much money they have and how much they owe. Many Americans are still lost in a paper shuffle of monthly statements, calculators and checks.”
Javelin’s study draws on an analysis of consumers based on whether they use online banking, mobile banking and pay bills through their FI. Moneyhawks – the consumers who do use all three – are the key consumer group driving the demand for these online and mobile services and shaping the future of banking. But not all FIs can meet their standards. Javelin research shows that almost two in three Moneyhawks flock to the four largest banks to conduct their online and mobile banking and bill pay. The pressure is on for community banks to upgrade their capabilities as customers increasingly expect 24/7 access and services. Javelin advises how these smaller banks can compete with the online banking and bill pay resources of larger banks.
“Almost half of Moneyhawks turn to Bank of America and Chase because they feel these two banks alone have the best mix of tools and services available,” said James Van Dyke, President and Founder of Javelin. “But our research shows that consumers are still seeking a better solution. The field is actually wide-open for FIs to create an online experience that truly meets their customers’ needs.”
Selected Key Report Findings – 9th Annual Online Banking and Bill Pay Forecast
- The three key steps that FIs must take to break the pattern of stagnation of online banking and bill pay.
- How consumer preferences and concerns affect growth rates of online banking and bill pay.
- The consumer segments that are the best prospects for online banking.
- How community banks can compete with the largest banks.
Contact
For more information about this or other Javelin reports, please contact Crystal Mendoza at (925) 225-9100 ext. 35 orcmendoza@javelinstrategy.com or visit www.javelinstrategy.com/research.
To arrange an interview with a research analyst and/or view available research (available to qualified members of the media), please contact Crystal Mendoza at (925) 225-9100 ext. 35 or cmendoza@javelinstrategy.com.
About Javelin Strategy & Research
Javelin Strategy & Research is the leading provider of quantitative and qualitative research focused on the global financial services industry. Our extensive quantitative data and deep analyst experience enable us to forecast the direction of the financial services market and make recommendations that empower you and your business to succeed.
