Online Banking: Moving Toward a New Paradigm

Aite Group forecasts that by

2010, 13% of checking accounts will be opened online in the United States, up from 3% in 2006.

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While banks are making online customer acquisitions a priority, there are significant differences in the number of new, online accounts banks are opening. The top performer, among the banks surveyed, is sourcing about 20% of its new checking accounts online, the next highest performer is sourcing 13%, and the lowest performer is sourcing 0.03%.

As competition for online customers grows among banks, there are a number of elements in which financial institutions, including some of the most sophisticated players, will need to further invest. Beyond mastering the account opening process, banks will need to become considerably more effective with online marketing. By leveraging online customer data, conducting targeted online and multi-channel marketing campaigns, banks will be well positioned to leap frog the competition.

Online Banking: Moving Toward a New Paradigm

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