Below are the questions and answers we received about online and mobile banking. Please email me or contact your account manager if you want more information on any of these topics.

How is direct mail spending different than print spending in the promotion of online services?
Banks tend to rely on direct mail to advertise online banking. In 2010, Advertising of online banking in direct mail was $34.6 million compared to $1.22 million in print spend and an estimated $3.6 million in online spend.

Do you know that those that you surveyed actually understand what an e-bill is (when they responded affirmatively that they use them, etc.)?
When we asked consumers if their bank offers eBills, we defined it as: “An eBill is an electronic version of a paper bill that you can view and pay online. Instead of being sent to your home mailbox, eBills are delivered to the website of your bank or credit union.”

Despite defining Bills, there is still the chance that consumers confused it with online banking. When we asked consumers if their bank offered eBills, we specifically provided a response of “I don’t know.”

Do you envision mobile payment technology affecting banks going forward? Will Apple, Google steal profits from banks?
I think the answer to this is complex, and dependent on a number of variables. I think mobile payments will happen – again, because it’s something that is already happening. (Think Starbucks.) However, the disparate nature of the business in the US has made it difficult to get mobile payments off the ground. Basically there are too many players – the banks, the mobile carriers, handset manufacturers, payment associations, mobile software vendors, merchants and consumers. The slow pace of development by the traditional players leaves the door wide open for Apple and/or Google to get their solution to market faster.

If Apple asks customers to link a checking account to iTunes, the structure would bypass the banks, which would result in a loss of revenue for the banks. But supposedly Apple is going to include NFC chips in the coming versions of the iPhone and the iPad. That type of solution would have to include the bank, but Apple still needs to get the retailers on board which isn’t going to happen overnight.
It’s no secret that Apple is planning to get into mobile payments, and it’s probably easier to work with them rather than against them.

What is the average life of a relationship between a customer and a FI if they have online services?
This isn’t something we track, but in general online services make the customer “stickier.” In other words, they are less likely to leave and more likely to have multiple products with the bank.

What statistics are available, if any, in countries outside the US?, do you have sample letters from outside the US?
We track US and Canadian direct mail, print and online advertising. The majority of the Canadian promotions are done through statement mailings. The US and Canadian bank similar messaging and both promote similar services

Any institutions out there using ‘incentive’ for continued use of the Bill Pay / OLB services as opposed to a one time sweep / incentive?
Ongoing incentives are offered in the form of reward points. For example, Capital One has a rewards program that awards 10 miles for each online bill payment, up to ten per month. (DM: 20110221-011247.) First Merit bank offers activity points for online bill pay. (DM: 20101223-011733.) Regions also awards points for online banking. (DM: 20100728-01186.)

Why are most banks simply focusing on pulling more fees from their declining customer base (the nearly depleted low hanging fruit) to increase revenue, instead of looking at how to generate alternative sources of revenue that can benefit customers and grow their consumer base? A few forward thinking banks are successfully cutting (branch) expenses with improved online services that really benefit customers. Charging online banking fees would seem to be incredibly greedy and counterproductive.

Ultimately I don’t think that banks can charge for online banking. The service has been free of charge for too long and customers have other options that are currently fee. Not to mention that it is in the banks best interest to have customers pay bills online rather than write checks. However, I think it’s interesting that customers don’t realize that writing a check has a cost – the customer must purchase the checks and the stamps. At a minimum writing a check costs the customer $.44 (the cost of the stamp). Perhaps if online banking fees were framed this way, consumers would be more accepting.

Will Smart Codes/2D codes be a tool used in financial services marketing?
Chase has already used a bar code to promote its new Android mobile app. I think this is a great use of the smart code. The codes could also be used in direct mail, print or outdoor advertising to allow people to get more product information immediately. Fifth Third has used them in direct mail. Instead of enrolling online, customers were given the option to use the QR code provided to register their debit card to receive bonus incentives. (DM: 20101202-011873.) Across the sectors tracked my Comperemedia, Telecom uses the QR codes the most, and banking uses them the least. In direct mail, some QR codes directed viewers to a website, while others directed viewers to YouTube and automatically began playing a video clip.

What is the biggest obstacle for consumers to using digital services?
If this refers to online banking, the biggest obstacle is security, but that is primarily tied to age. There are two main challenges in mobile banking: 1) Not all consumers have a “smart phone and 2) consumers have security concerns.

What are your thoughts about creating a dedicated graphical icon for online banking (i.e. MyAccount)
If this can be done so it fits into the overall branding of the bank, then it’s a great idea.

Of consumers who like online banking, what would they like to see improved/see more of/eliminated?
I don’t think consumers know what they want. I think it’s up to banks to figure it out.

Of consumers who don’t like online banking, what can marketers do to overcome their barriers to acceptance?
Security is the biggest obstacle, so to the extent that banks can address this they will be able to get consumers to accept it.

Is there any statistic about on-line spend?
Comperemedia started tracking online advertising in June 2010. We estimate that banks spent $3.6 million promoting online banking services in 2010.

Is bill payment trending towards payments at biller sites or will they remain with the bank online banking bill payment systems?
With the rise of paperless statements more and more consumers are paying at biller sites.

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