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Published by: Jupiter Research Corporation
Published: Sep. 17, 2001 - 31 Pages
Table of Contents
The Bottom Line: How to Keep Online Customers
Common industry knowledge is that consumers rarely change banks;
instead, they open additional accounts with additional banks or financial
services providers. Having a strong, tailored and integrated online offering
will assist in building further product depth within a financial institution’s
relationships with its clients. With an increasing number of financial products
available online, it is more relevant than ever to create compelling
offerings and barriers to switching.
Measurement: The Internet Is Becoming Just Another Channel to Customers
In June 2001, more than 5.7 million unique visitors went to financial serv-ices
sites and spent on average a little less than 30 minutes on the sites.
By the end of 2001, 7.3 million online banking users will manage their
accounts online and 1.1 million users will trade online. While confidence
in online financial services is maturing, consumers’ expectations are
growing, too.
Competitors: Differences are Apparent in User Experience
The current online financial services scene is dominated by traditional
High Street banks. Although their offerings are broad, such banks offer
piecemeal service across several platforms and sites, leaving customers’
core financial services needs in the back seat.
Analysis and Forecast: Convergence and Oversupply Will Drive Industry Restructuring
Pressure among companies to compete and provide better-tailored offerings
will drive the financial services industry to restructure. The outcome
of this repositioning will be the emergence of two distinct roles: Financial
syndicators will provide one-stop shopping and product specialists will
cover niche demand; together, these companies will serve 18.3 million
online banking and brokerage users in 2006.
Advice: Pursue Integration for Client Retention and Acquisition
Satisfying customers’ needs will not alone make a business profitable
in the future—financial syndicators must build barriers to switching by
integrating and tailoring their offerings to increase customer retention
and profitability.
Abstract Common industry knowledge is that UK consumers rarely change banks; instead, they open additional accounts with additional banks or financial services providers. Having a strong, tailored, and integrated online offering will assist in building further product depth within a financial institution's relationships with its clients. With an increasing number of financial products available online, it is more relevant than ever to create compelling offerings and barriers to switching.
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