The Bankwatch

Tracking the consumer evolution of financial services

Online Banking: Moving Toward a New Paradigm

Aite Group issue a new report that assesses the business and technology strategy amongst 21 large US banks. So this will I presume include, Wells, Citi, Wachovia, Chase etc.

“Online Banking: Moving Toward a New Paradigm Aite Group forecasts that by 2010, 13% of checking accounts will be opened online in the United States, up from 3% in 2006. Aite Group recommends the leading online banking channel vendors should progress beyond software applications and offer value-added services, such as online marketing outsourcing, to remain competitive.”

Source: “Aite Group, LLC Report #200608281 – Mozilla Firefox”

The report details the banks’ interest in eight value-added products and services including expedited bill payment, account-to-account transfers, fraud management services, online personal finance management tools (PFM-Lite), card-based bill payments, online bill presentment, account aggregation, and online marketing campaign outsourcing.

Among its key findings, the report notes that while banks are making online customer acquisitions a priority, there are significant differences in the number of new, online accounts banks are opening. The top performer, among the banks surveyed, is sourcing about 20% of its new checking accounts online, the next highest performer is sourcing 13%, and the lowest performer is sourcing 0.03%.

The vendors mentioned in the report is a useful list of vendors in this space.

The vendors mentioned in the report include:

Andera, BankDetect, Cashedge, CheckFree, Corillian/Intelidata, Digital Insight, eFunds, Equifax, Experian, Financial Fusion, Intuit, Lexis-Nexis, MasterCard RPPS, Metavante, Microsoft, MoneyGram, Online Resources/Princeton eCom, Verid, Visa ePay, Western Union, Xoom, and Yodlee.

Written by Colin Henderson

August 25, 2006 at 08:28

%d bloggers like this: