Will 2011 Mark the Return of Online Services Fees?

A recent publication of Online Banking Report underlines the need for online banking to become a profit center rather than a cost center. There are a number of ways to improve the profitability of this channel in order to accomplish this feat. Premium online services top the list, supporting segmented offerings that can improve fee income, retention and customer acquisition. OBR editors believe that as more users go online, a market will grow for premium consumer services along the lines of American Express and Federal Express. Creating a lending center and providing mobile, credit monitoring and OFM also rank high on the list. For more information see OBR’s NetBanker blog.
How do you plan to improve your profitability in order to meet your strategic goals in the year ahead? What would it mean to your institution if your online channel became a profit center? Let us know in the comments section below.

Comments

  1. Anand says:

    Agree that online banking needs to become a profit center rather than a cost cente. However, charging fees for online services doesn’t appears to be a very well thought strategy.

    Banks no doubt would need to offer premium online services to improve engagement and customer retention but the revenues must come from cross-selling and up-selling banking services and not as fee income out of value adding online banking services.

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