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See Full StorySomething tells me that the proliferation of computers at the bank entrance, the absence
of tellers at most of the windows, and the fee that is charged for the privilege of
speaking to a teller are all designed to coerce me into banking online.
But try as they might, banks are having a tough time convincing the public of the
convenience, safety and ease of online banking.
Online banking is not only:
- easy –or will be soon, depending on your bank or your willingness to switch banks
- safe –it's easier to intercept a check than it is to intercept a secure, encrypted transaction
- cheap –either your bank passes the savings along to you, or you will switch to one that does to win you over
But also:
- fast (no waiting lines)
- high level of control
In fact, there are more reasons to bank online and –soon- via wireless:
- anytime, anywhere
- increased sense of control
- better timing of payments (no more late fees and returned checks)
But it takes time:
- customers need to get used to it – this takes years
- do you know how many different systems an average bank operates?
- banks are not saving costs until they discard old systems and 'interfaces'
Key success factors for banks and fs providers are:
- keep it simple (few clicks, robust look), increasing functionality in layers for those customers who want it
- extremely high safety perception through 'look' (same reason bank is in beautiful building: trust) and responsiveness
- NO FEES, instead: PAY the customer! How about "frequent online banking miles" ...
- Make modest, non-intrusive use of the increased number of online interactions (yes!)
- Don't be afraid to downsize branches and reduce tellers – it's OK to lose customers that cost money anyway
- Nobody said it was easy
If banks, telecom service providers (phone, DSL, ISP, Wireless), and utilities remember that online is just one service, they have the right attitude.
Consumers don't like to be required to use a service, especially American consumers. But, if the bank or service provider promotes the service correctly, customer adoption increases and it starts the snowball rolling.
We created a marketing program and materials for our customers (who are the service providers) to use in getting customers to adopt. And, just like any other service or product you promote, you need to give the customer reasons for using it, or an incentive that gets them into the habit.
So, will we ever bank online? Yeah - more likely the generation of customers who grew up using computers instead of standing in lines. And for the rest of us, only if it saves us time, money or both.
Also, if you live paycheck to paycheck, like the majority of Americans, you can not rely on online banking nor lose the "float" of mailing your bills to meet the "deadlines" of creditors. The banks do not guarantee a certain payment date but tell you to allow for five days for the payment to hit your creditor. That's a lifetime when you need the payment made on a specific day or are waiting on your payroll check to hit the account.
Who is going to be the first bank to charge all of their customers a transaction fee for the privilege of banking at their establishment and I say they will be out-of-business quickly. If they can not make money on the loan side of the house then they probably should not be in business. It's classic military stats, 8 people behind one frontline soldier, i.e., bank teller or loan/customer service representative. Get rid of the fat, start taking care of your customers, and you might be amazed.
Once we have daily debits, credits, access to all banking accounts and instant bill payments, America will embrace online banking. Until then, where's my checkbook?
Online banking provides a greater level of customer service and satisfaction than I ever received from a traditional banking service.
