Cause and Effect: If you build it, will they come?

This is an excerpt of an article original posted on Bank Systems & Technology.

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that customers who adopt digital banking and develop into active users also become more profitable.

Jason Weinick photo 2014Digital banking tools encourage customer behavioral changes that benefit banks. Offering remote deposit technology can allow financial institutions to create a more engaged experience for their customers and alter their banking behavior. For example, banks may find that customers that use Remote Deposit Capture (RDC) leads to increased deposits due to the convenience of the service and the fact that it incorporate familiar technology. A 2012 Javelin Strategy & Research study mentioned that more than one in four consumers found mobile deposit desirable or very desirable and about 80% of consumers who desired mobile RDC already actively used their mobile phones to take photos.

As customers rely on digital tools for one function, they are primed to move to another. Financial services can seize on this opportunity by actively cross-promoting their offerings to customers who might not be otherwise inclined to adopt new technologies.

Non-digital customers still matter—but the growth is clearly on the other side of the coin. Once a customer moves online, the more profitable they become. The opportunity then lies in keeping those customers engaged with a breadth and depth of online and mobile offerings supported by targeted marketing programs that drive adoption and active use.

For the full article on Bank Systems & Technology please click here.

Jason Weinick is Manager of Analytics with Digital Insight. In this role, he leads the initiative on client profitability analyses, providing banks and credit unions a valuable in-depth look into the value of the online channel. Jason’s background includes 15 years of experience within the financial services sector, focusing on consumer behavior, risk modeling, reporting and financial analysis.

Video: New Expectations for Customer Experience

CeCe Morken, senior vice president and general manager of Intuit Financial Services recently presented the opening keynote at the Barlow Research National Client conference. This is part three of the video series.

Serving Small Businesses: A Tough, but Important Nut for Bankers to Crack

Intuit Financial Services’ CeCe Morken explores how bankers can best serve small businesses, a critical customer segment for financial institutions.

Financial Management Capabilities and Remote Deposit Top Customers “Wish” List

Earlier this month, we hosted a poll and asked our readers, “What one technological feature do your customers ask for the most?” With the myriad of technological features available, we wanted to determine what customers and members are interested in, whether it is mobile banking, remote deposit capture, P2P payments or more.

The results: financial management capabilities, which include budgeting, goal-setting and the ability to see spending/payments all in one place, and remote deposit capture ranked the highest, each claiming 22 percent of the votes. Below is a full breakdown of the results:


To delve into the poll results, Webster Bank, which has more than 180 offices throughout Southern New England and Westchester County, New York, weighed in with additional input from their customers.

Greg Jacobi, Senior Vice President, eBanking, said their customers most often inquire about mobile banking and remote deposit capture for consumers. Webster Bank currently offers mobile Web capabilities, but with the surge of smartphones, users are eager for a mobile app. They have also seen an uptick in their remote deposit capture application for businesses. Greg noted that, “business customers that use remote deposit capture get a tremendous amount of value out of it.” Although it cuts down on bank branch visits, remote deposit capture lets consumers make a deposit on their terms.

Greg adds, “to be honest, we have noticed a trend that customers are not asking (as much) about the marquee features you have in your poll.  Across the industry, they want their existing online banking to be better.  The basics of online banking have not been reconsidered for quite a while.  One path people are taking to get there is PFM.  We love the innovation happening around PFM.  But, I do not think the average customer is asking for it as a separate offering.  They want the benefits of PFM; being able to categorize their transactions, set goals, search better and get useful visualizations of their data integrated into what they already have.”

Are your customers and members asking for the same technological features? Let us know in the comments section below or Tweet @bankingdotcom.


Resolution #1? Help Your Customers Reach their Resolutions

With the first week of 2011 coming to a close, many consumers are still in the midst of creating resolutions and plans for the New Year. While weight loss continually tops the list year after year, financial institutions should keep in mind many Americans also make it a goal to get out of debt and become financially fit as well.

In fact, a recent study conducted by the Chase Slate-U.S. News Consumer Monitor found that Americans are generally more optimistic in terms of financial planning heading into the New Year. Over half of the respondents had little to no anxiety about their finances in 2011, 6 in 10 believing that the economy was improving.

Gen Y shows the highest levels of optimism, mentioning they would work toward saving money and managing finances better. The survey found that planning translates into confidence – 18-34 year olds are more likely to believe that both the economy and their personal finances are getting better than other age groups.

The beginning of the year is the perfect time to re-evaluate the tools you have in place to help all of your customers reach their goals. Specifically, take a look at how you reach different segments of customers. What are your resolutions for reaching Gen Y? Women? Boomers?

Leave a comment below to offer insight on your 2011 plans!

Internet Banking: How can Banks Enhance Channel Maturity? (Part 2)

Segment Description and Strategy


This is a customer segment that relies more on the traditional offline channels primarily for a strong need for human assistance in performing banking tasks and hence is more comfortable with human interactions. Customers in this segment are infrequent user of online channels and are unaware of the variety of tasks they can perform on internet banking channel. For reasons such as security, trust in technology etc., this segment is uncomfortable moving beyond the basic level 1 channel functions like view account balances, view recent transactions, generate online account statements etc.


- Educate about array of services offered and convenience of Internet banking over traditional banking channels.

- Educate about security of online transactions, privacy policies, limited liability in fraudulent transactions, additional user authentication measures, data encryption techniques etc.

- Training and handholding is the right first step to move them to the next level of channel usage.


Customers in this segment are frequent users of selective services offered on self-service channels. The primary drivers for these customers are speed and convenience. In addition to informatory services, customers in this segment are most likely to engage in the transaction-centric functions such as funds transfer within and between banks, bill payments, setting automated periodic money transfers etc.

Although active users of selective services and potentially aware of more advanced services, they do not perceive any compelling benefits in moving beyond the tasks they often engage with.


- Offer incentives – monitory (e.g. discounted processing fees) as well as non-monitory (e.g. quicker loan approvals).

- Offer multiple touch points to facilitate completion of transaction and create capability for effective handling of online – offline crossover interactions.

- Create a seamless experience between offline and online channels.


Customers in this segment are mostly forward looking and affluent who is time and service quality conscious. This is an effervescent customer segment where loyalty towards any particular bank is low and any lapses in service quality and unavailability of timely / accurate information can be a huge disappointment.

In addition to adoption of level 1 and level 2 services, customer in this segment often engage in utilizing the potential of internet banking to deliver automation driven straight through processes.


- Focus on artificial intelligence driven automation to deliver straight through processes.

- Provide an error free online experience.

- Introduce and educate about advanced investment planning and wealth management services.


Experts, the forward-looking segment, are early adopters of technology introduced. The customers in this segment are those who have achieved considerable expertise while demonstrating their ability to perform complex tasks using self-service channels. They are extremely comfortable and enjoy banking online and are proactive users of most of the online services. In addition to other service offerings, they tend to utilize the power of internet banking to consolidate multiple bank and investment accounts, investment planning and avail wealth management services.


- Engage to Retain: Create clear channel differentiation and offer distinguished value preposition to improve stickiness and retain online.

- Offer more advanced financial planning services like those offered by exclusive personal finance management portals such as

- Introduce technological advancements and migrate to more cost effective channels like mobile banking.

Channel Maturity Continuum to Make the Right Offer to the Right Customer

Banks that understands their customers‟ needs and act proactively and effectively to deliver tailored treatments stand the best chance to engage and retain customers. Banks that wish to improve the effectiveness of their channel maturity campaigns must develop capabilities to segregate areas that demand generic mass communication from the ones that demand personalized and targeted content appropriate for each customer segment.

When a customer logs on to internet banking channel, beforehand knowledge of segment the customer belongs to presents an opportunity to engage and drive the customer to relevant subsequent levels of functionality. Each successful login thus provides an opportunity to enhance channel awareness and induce channel usage, thereby enhancing the channel maturity.

The channel awareness – channel usage based segmentation offers a deep insight into customers‟ behavior and technology adoption cycle. This knowledge when translated into actions can help banks achieve precision in formulating an appropriate and targeted channel maturity strategy – thus improving the RoI.

The author, Anand Kulkarni, is a business analyst / consultant by profession and can be reached at or on LinkedIn. All the views expressed in this paper are those of the author and not Intuit Financial Services.

Internet Banking: How can Banks Enhance Channel Maturity? (Part 1)

Internet banking enables banks to perform many functions that are much more expensive to perform using the traditional banking channels. Most of the tier 1 and tier 2 banks have made significant investments in making the Internet Banking channel available to its customers. To make the investments in alternate channels good, banks worldwide have realized the importance of migrating customers on the self-service channels and are making considerable investments in channel migration campaigns.

Most of the banks view and measure channel migration in terms of traffic, number of new registrations and number of active accounts. Although these parameters offer a quantitative view of channel penetration, they fail to provide an insight on ‘channel maturity’ – the degree of adoption of services offered.

For banks to realize full set of potential benefits offered by Internet Banking, the scope of channel migration campaigns must be broadened – from acquiring customers on channels to include ‘channel maturity’- maturing customers on channels.

Enhancing ‘channel maturity’ is an ongoing process that works to improve two key aspects – awareness and adoption of services. It aims at improving customer awareness about tasks that can be performed on self service channels and maturing customers from performing basic informative functions to more advanced transacting functions.

An effective ‘channel maturity’ strategy can be devised by monitoring and measuring level of channel awareness and channel usage. This knowledge of user behavior, when viewed in light of a behavioral segmentation approach will help banks apply an appropriate strategy for each customer segment to achieve precision in channel maturity efforts rather than adopting a “One Size Fits All” approach.

Understanding Customer Behavior is the Key

Currently, the potential of internet banking is underutilized by most banks. The efforts to improve adoption rate fall short to achieve the desired results; primarily because of untargeted generic campaigns. Let alone the channel maturity, even the channel migration efforts by most of the banks lack a well defined approach. This leaves banks with high migration costs and unpredictable and low conversion rates.

The process of building a successful channel maturity strategy must begin with a focus on:

1. Thorough analysis of customer behavior by monitoring the usage of services offered and understanding the channel awareness levels.

2. Customer segmentation based on customer activity on internet banking channel.

3. Identification of offerings that can improve stickiness and motivate customers to mature to performing more advance functions

4. Designing targeted campaigns customized for each customer segment

Given the evolving state of internet banking, the degree of channel awareness varies and includes awareness about speed, technology, convenience, ease of use, services offered, security of online transactions etc.

The ‘services used’ parameter measures transaction-centric functionality used by customers. The classification of channel offered services that each of the four segment use assumes inclusion and adoption of lower level services and is a measure of growing awareness as well as channel maturity.

The author, Anand Kulkarni, is a business analyst / consultant by profession and can be reached at or on LinkedIn. All the views expressed in this paper are those of the author and not Intuit Financial Services.