CashEdge Survey Confirms Consumer Demand for Value added Online Banking Services
Survey Uncovers Interest in Real Time Funds Transfer Even at a Price
Consumers Prefer to Open Accounts Online and Demand Immediate Access to Funds
New York, NY – October 12, 2006 —Seventy-four percent of the respondents say they prefer opening and funding a new bank account online, 80 percent surveyed expect a new bank account to be available for use the same day (41 percent said they expect it to be available immediately), and almost one third (33 percent) of consumers are interested in real time/ immediate funds transfer even if it involves an additional fee, according to CashEdge's 2006 Consumer Online Banking Survey. Released today at CashEdge's Client Conference: Innovation 2006, the company's first-ever consumer study examined the online banking behavior and preferences of more than 400 consumers who use online banking functions.
"This data underscores the revolution we are witnessing in the online banking industry. No longer cautiously waiting on the sidelines, consumers are actively seeking services that will make their financial lives more efficient, even if that means paying a fee or leaving a trusted institution for the ability to access their funds and transact in real time," stated Sanjeev Dheer, chief executive officer of CashEdge. "Today's consumer is opening and funding new accounts online and regularly transferring money online between accounts. For financial institutions, the value of the online channel has never been greater. Effectively leveraging this underutilized channel has become a pre-requisite for competing in the industry."
The survey results uncovered an unprecedented consumer demand for online banking services. Among the study's most significant findings are:
Strong Demand for Funds Transfer
Seventy percent of respondents said they would be "interested in transferring funds housed at different financial institutions," and nearly three-quarters (73 percent) would like to use online funds transfer for making payments to "other people/ third party" instead of paying by check or cash.
Branching Out from Branches
The majority of respondents consider visiting their bank a "chore" (69 percent), 88 percent try to minimize bank visits, 69 percent reported a "high" to "very high" desire to ultimately move all of their banking and financial transactions online, and more than three-quarters (78 percent) say that if possible they would never go to the bank to conduct a financial transaction.
Consumers Abandon Trusted Institutions for Advanced Online Functionality
Eighty-five percent of those surveyed say they would use more online banking capabilities if they were available, and 64 percent would move their finances to another institution if it meant gaining access to more robust online banking capabilities.
Fear Factor
Forty-seven percent cited security as a concern with online banking transactions. Backed by customized policies from leading insurers, CashEdge's risk management solution absorbs and manages the risk surrounding user authentication, external account ownership, transaction settlement, fraud, and regulatory compliance. By leveraging CashEdge's expertise and ability to absorb risk, banks can eliminate the problem, as well as the perception.
Commissioned by CashEdge, the study polled 417 consumer "heads-of-household" who use online banking capabilities. These respondents described themselves as bank customers (78%) and credit union members (19%).
About CashEdge
CashEdge® provides innovative, online financial applications to banks, credit unions and wealth management firms. CashEdge's solutions include end-to-end online account opening and funding, funds transfer, small business payments and invoicing, and data consolidation. These proven solutions are flexible, scalable and supported by extensive risk management capabilities.
CashEdge has been ranked by Inc. Magazine as one of the 500 fastest growing private companies in the United States for two years in a row. In 2007 it was also recognized by the 2007 Deloitte Technology Fast 500 and Fast 50 as one of the nation's 500 fastest growing private companies and one of the 50 fastest growing companies in the New York area, respectively. The company currently serves hundreds of leading financial institutions including four of the top five banks, 23 of the top 100 banks, and 20 of the top 100 credit unions. CashEdge has offices in New York, Silicon Valley and India. For more information, please visit www.cashedge.com.
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