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

/   Spotlight

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In this three part series, Digital Insight staff discusses how financial institutions can increase their profitability through offerings and customer usage.

In our first and second articles we examined research from Digital Insight that proves that digital bankers increase engagement with their financial institution as well as what banking applications cause high profitability. Now, we will take a look at adoption of digital banking, and how to keep these profitable customers coming back for more.

Analyzing Digital Insight data during a two-year period, we have found some interesting insights to maintain and increase digital banking engagement.

Getting to Multi-Channel

The digital channel provides increased opportunity to reach your customer wherever they are, at any time. Therefore, the more solutions they actively use, the more engaged they become. Our research shows that an effective multi-channel marketing program can have a major impact.

Causality Part 3

Internal study of 86 Digital Insight FI customers, July 2009 through March 2014

By reaching customers through multiple digital touch points including emails, banners and prompts, financial institutions can cross-promote complimentary offerings to lead their customers to products and services that best fit their needs.

Let’s take person-to-person payments as an example. This digital payment is a great option for customers making a quick payment transaction to other individuals without writing a check or even setting up an additional payee within bill pay.  The ease and convenience provided by person-to-person payments nicely compliments other digital payment solutions the customer uses today.  As a result, cross-promoting these complimentary solutions together have a powerful impact. For example, Digital Insight’s email and log in-prompt marketing program drove a 64% lift in adoption of a person-to-person payment solution with customers already active in bill pay.[1]

Online banking customers are thirsty to adopt new and different ways to bank, which is evident with the explosive growth of mobile banking solutions. Cross-selling mobile offerings to customers who have already adopted online banking is a natural fit.

Our financial institutions who cross-sell their mobile solutions to online banking users see a 28% lift in active user penetration of mobile versus those financial institutions leaving customers to self-discover.[2] Additionally, institutions marketing the features and functionality of their mobile offerings show 37% higher penetration of Remote Deposit within their app user population than financial institutions who don’t market their mobile offerings.

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.

The data used for this article was analyzed by the following Digital Insight team members: Heather Youngo, business analyst, Jason Weinick, manager of analytics, Brenda Shimmons, manager of analytics and Russ Tarver, marketing manager.

[1] Internal study of Digital Insight marketing campaign of 49 financial institution customers, January 2013.

[2] Internal study of 324 Digital Insight financial institution customers, November 2013; claim based on comparison to Digital Insight Bill Pay GRS and Mobile GRS users vs non users

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Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.