Its the equivalent of opening 23 new branches and took two months
Follow up to the US Banks reaction to ING shows it works. Produce a better product and people will buy it. This is not about brand awareness, or any other fuzzy logic – its about simple pure product design. Incidentally, when I say product, I mean product in the holistic sense. From a customers perspective, the design of the product, and the design of the channel, ie the delivery mechanism have little to differentiate them. So this is the holistic offerring I am referring to here.
Finextra: Citi’s Prince hails Web savings success
Citigroup says its new Internet savings account has attracted $3 billion in deposits since its launch in March, with two thirds of that “new money” to the institution, the equivalent of opening 23 new branches.The Citibank Direct offers customers a 4.75% interest rate, making it one of the highest paying online banking accounts available.
The move was seen as an attempt by Citi to compete with high-yielding online accounts offered in the US by rivals such as ING which currently pays 4.25% interest.
Technorati Tags: banking+strategy, product+design
[...] I keep going back to the “23 branches in 3 months (using Internet)” story and the “Bank for every block (and empty)” story whenever I see this return to branch building. [...]
Canadian Banks & Insurance | RBC, Scotiabank to Add Branches « Bankwatch
Thursday, 5 October 2006 at 21:02