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.

Stat of the Week

Here’s this week’s stat of the week, courtesy of the Accenture 2014 North America Consumer Digital Banking Survey.

Do you have an interesting industry stat you think should be featured on Banking.com? Let us know in the comments section or Tweet @bankingdotcom.

Accenture Stat of Week 6 9 14

This Week’s Reads…

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom.

This Week’s Reads…

Mobile Banking Engagement: Data from Digital Insight

Digital Insight has been conducting a comprehensive and ongoing study of financial institution customers. From these studies, the company has been able to provide a deeper view of banking customer behavior across several categories, such as mobile and online banking. In this first post, we examine mobile banking statistics and how they both impact and benefit financial institutions. Below are key findings from the study, and you can view a more in-depth analysis here.

We will be publishing data on additional topics in the coming months, so stay tuned via Banking.com. *For information on the on the methodology used for the study you can download the PDF