aba internet banking survey

8/11/2019 Aba Internet Banking Survey

1/14

Internet Banking

Profitability: Promise orPipe Dream

Internet Banking


ABA US Banking 2002

Doug Johnson

Senior Policy Analyst

American Bankers Association


2/14

Agenda

What Do The Numbers Say?

What Do The Numbers Mean?


3/14

22%

34%

42%

53%

66%

32%

74%

50%

0

0.1

0.2

0.3

0.4

0.50.6

0.7

0.8

1997 1998 1999 2000 2001 2002

Website Transactional Website

Does Your Bank Have A Website?

*

* represents 67% of banks with websites

Percent

Source: ABA Community Bank Competitiveness Survey


4/14

10%

21%

33%

41%

0

0.05

0.10.15

0.2

0.25

0.3

0.35

0.4

0.45

1999 2000 2001 2002

Over 1,000 Hits

How Much Traffic Does Your WebsiteReceive Each Month?


Percent

% of Respondents


5/14


6/14

19%

29%

49%

2%

27%

31%

39%

2%Yes

Don't Know

No, But Will

Be

No, But Don'tExpect

2002 2001


Is Your Website Profitable?

% of Respondents


7/14

Does Your Site Bring You Business YouOtherwise Would Not Have Had?


21%

21%

16%

20%

29%

1997

1998

1999

2001

2002

% of Respondents


8/14

What Percentage of Your Total CustomerBase Uses Online Banking?


9.2%

9.7%

8.3%

9.4%

Average Under

$100 M

$100 -

200 M

$200 M -

Up

Total Sample

By Bank SizeResults based on the 62.8%of respondents who couldgive a figure


9/14Source: CelentCommunications

-$200

$0

$200

$400

$600

$800

$1,000

10% 15% 20% 25% 30% 35% 40%

NPV$(inthou

sands)

NPV vs. Penetration of Home Banking

Percentage of Customers Using Internet Banking

Five Years After Launch

Increasing Bank Size

Bank with 100,000customers




10/14

16% 26%

23%

16%19%

Fees and Interest

Cost SavingsCustomer

Retention

Customer

Acquisition

Cross-Sell

Allocation of BenefitsInternet Banking

Source: CelentCommunications


11/14

Which Service Does Your TransactionalSite Offer?


6%

9%

10%

19%

29%

30%

32%

35%

59%

61%

75%

83%

91%

92%Account Balances

Account Transfers

Bill Paying

Financial Calculators

Order Checks

Stop Payments

Online Loan Applications

Customized Statement

Online Check Images

Account Opening

Online Securities Brokerage

Bill Presentment

Online Loan Approval

Other

(includes trust balances, insurance,brokerage, mortgage loan

commitments, and deposit

bidding)

% of Respondents


12/14

What Percentage of Your Online CustomerBase Uses Bill Payment Services?


9.4%

13.8% 13.4%

Average Under$100 M

$100 -200 M

$200 M -Up

Total Sample

By Bank Size

12.6%


13/14

23%

12%65%

No

Yes

Plan to

Does Your Bank Provide Web-BasedAccount Consolidation?*


*Informationabout all of acustomersrelationships at

your bank.

*Informationabout all of acustomersrelationships at

your bank.

% of Respondents


14/14

Internet Banking


Internet Banking


ABA US Banking 2002

Doug Johnson

Senior Policy Analyst

American Bankers Association

aba internet banking survey

Documents