Online banking, though it’s becoming a fixture in many homes, is still relatively young.
It’s not a big surprise, then, that we want our banks and online financial applications to do more and add more.
Yodlee, which makes online banking software for financial institutions, sponsored a white paper from the Aite Group called Next-Generation Online Banking and Bill Pay: A Concept-Testing Study Among Banks and Consumers, which looked at how online banks can improve.
Most of the white paper deals with how banks can differentiate themselves from the competition, but there are some interesting statistics about features we online bankers want to have.
Source: Aite Group, September 2006 survey of 1,204 consumers of age 21 and older with equal gender distribution who were demographically balanced to the U.S. Census
The feature topping the list, E-mail or text message alerts for large transactions that may indicate identity theft, is a great idea. Because many people are still worried about online banking security, giving them the ability to tackle problems quickly should they arise is key.
Here’s the conclusion from the white paper:
Banks typically don’t feel like they suffer from a huge functionality gap, largely because they enjoy a relatively high level of satisfaction among their online banking users. While this is comforting news, the flip side is that banks are finding it increasingly difficult to differentiate. While their online offering may be good enough to retain existing customers, over time, it will not be differentiated enough to help stay ahead of the competition and achieve their goal of expanding the channel’s role as a customer-acquisition and sales-engine vehicle.
While this white paper is sponsored by Yodlee (read: biased), the information is still useful and gives us a great idea of what online banking will look like in the future.