In September 1999, SunTrusts Banks, Inc. became the 14th of the top 15 US banks to offer browser-based Internet banking (the last bank, Bank of New York, is planning a launch in Q1 2001). Even though SunTrust Banks, Inc. was late to the game and introduced browser-based banking after most of its peers, its 13.6% online banking penetration rate compares favorably with the US average of 12% to 14% (TowerGroup estimate). By this measure, the bank is succeeding as a "fast follower" in the Internet banking marketplace.
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Highlights
SunTrust Banks, Inc. is the 10th largest bank in the US, with over 3.8 million customers and offices in six states and the District of Columbia. It was created when SunTrust and Crestar Bank merged in December 1998. While both banks had online banking offerings prior to the merger, the merged bank became one of the last large US banks to offer Internet banking. Nevertheless, since going live with its Internet banking initiative in September 1999, the bank has signed up 350,000 customers.
One factor in the bank’s success was the creation of SunTrust Online, Inc. This unit, which reports directly to Marketing, organizes, advises, counsels, and directs the Web-based initiatives of the bank’s business units. Its responsibilities include call centers, e-mail support centers, personal financial management (PFM) banking products, and Internet banking services.
Despite little promotion, the bank has successfully grown its customer base and has a customer penetration rate higher than the national average for both online banking and electronic bill payment. Moreover, this strategy has kept the bank’s customer acquisition costs very low.
SunTrust Banks, Inc.’s online customer retention rate is higher than its offline customer retention rate. The bank believes that bill payment is a major factor.
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