Online Banking Behavior Segmentation: A Behavioral Approach to Improving Adoption

Published by: Javelin Strategy & Research

Published: Feb. 1, 2008 - 37 Pages

Table of Contents

Overview

Primary Questions

Findings and Analysis

Create Behavior-based Segments for Actionable Means to Get Consumers Online

How can these segments be identified within a bank or credit union’s customer base?

Which customers do these segments represent?

Superstar Financial Managers Require Advanced, Easy-to-Use Capabilities

Who are the Superstar Financial Managers?

The benefits: Active, satisfied online bankers

The challenges: High standards and high expectations for their PFI

Locking in Superstar Financial Managers

Online banking personal financial management for increased loyalty

and migration to bill pay

Account alerts motivate bank bill pay and paperless statements

Habitual Bankers Need Personalized Service in All Channels

Who are the Habitual Bankers?

The benefits: Untapped potential to convert to active online bankers

The challenges: Proactive, individualized, one-on-one interaction required

Locking in Habitual Bankers

Online services education across multiple channels

Beyond online servicing to reinforcement through multiple channels

Managing finances through alerts

Online Averse Bankers Require Education to Allay Fraud Concerns and Move them Online

Who are the Online Averse Bankers?

The benefits: A willingness to interact and learn

The challenges: Fears and misconceptions

Locking in Online Averse Bankers

Bringing Online Averse Bankers online through security education in multiple channels

Using the mobile channel to demonstrate remote access value and protection

Appendices—Additional Data about Online Banking Behavior Segments

Methodology

Related Research

Table of Figures

Figure 1: Summary of Behavior Segments Identified in the Report

Figure 2: Motivations for Choosing a New Financial Institution

Figure 3: Rates of Usage for Financial Banking Products

Figure 4: Likelihood to Remain a Customer if Offered Online Banking PFM

Figure 5: Preference for Type of Financial Alert

Figure 6: Rates of Usage of Traditional and Electronic Channels for Banking Activities

Figure 7: Tenure of Online Banking Usage

Figure 8: Motivations for Switching Financial Institutions

Figure 9: Screenshot of WaMu’s Online Banking Video Demo

Figure 10: Screenshot of Bank of America’s Click-to-Chat Capability

Figure 11: Opinions Regarding Paper Turn Off for Statements and Bills

Figure 12: Motivations for Viewing Bills Online

Figure 13: Reasons for Not Banking Online

Figure 14: Features Valued Most in Online Banking Personal Financial Management

Figure 15: Change in Online Behavior Given Concern about Identity Theft Threats

Figure 16: Screenshot of JPMorgan Chases’ Security Center

Figure 17: Rates of Behavior Changes since Beginning to Use Online Banking

Figure 18: Rating of FI Performance in Protecting Consumers Who Bank Online

Figure 19: Preference for Viewing and Paying Bills Online

Figure 20: Opinions Regarding Paper Turn Off

Figure 21: Rates of Online and Offline Receipt of Statements and Bills

Figure 22: Change in Online Behavior Given Identity Theft Related Threats

Abstract

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