CashEdge Annual Survey Reaffirms Consumer Demand for Online Banking Services
Consumers Willing to Switch Banks for More Robust Online Capabilities
New York, NY – October 11, 2007 —In CashEdge’s second annual Consumer Online Banking Survey, the respondents have echoed the sentiments of the group polled in last year’s 2006 survey. Eighty-five percent of respondents would never bank with an institution that didn’t offer online banking, eighty-two percent of those surveyed say they would use more online banking capabilities if they were available, seventy-three percent of the respondents say they prefer opening and funding a new bank account online, and nearly two-thirds (65 percent) would move their finances to another institution if it meant gaining access to more robust online banking capabilities. Released today at CashEdge’s Client Conference: Innovation 2007, the study examined the online banking behavior and preferences of more than 400 consumers who use online banking functions.
“For the second year in a row, consumers are telling us how much they value opening their accounts and conducting their ongoing banking business online. They continue to express a desire for more online capabilities and a willingness to switch institutions for more complete service offerings,” stated Sanjeev Dheer, chief executive officer of CashEdge. “Consumers are still waiting for banks to deliver on the promise of their online channel. Banks that maximize their web presence are beginning to quantify the competitive advantage, and I believe we are nearing the point where banks that underutilize the online channel will experience a backlash.”
The results of the second annual survey uncovered an unwavering consumer demand for online banking services. Among the study’s most significant findings are:
Moving Money Here, There and Everywhere
Eighty-seven percent of respondents have accounts at more than one institution and sixty-six percent of respondents said they would be “interested in transferring funds housed at different financial institutions.” Additionally, nearly three-quarters (71 percent) would like to use online funds transfer for making payments to “other people/third party” instead of paying by check or cash.
Show Me the Money… Now!
Seventy-four percent surveyed expect a new bank account to be available for use the same day (29 percent said they expect it to be available immediately), and twenty-seven percent of consumers are interested in real time/immediate funds transfer even if it involves an additional fee.
Online More Popular Than Branches
The majority of respondents consider visiting their bank a “chore” (66 percent), 88 percent try to minimize bank visits, 65 percent reported a “high” to “very high” desire to ultimately move all of their banking and financial transactions online, and three-quarters (75 percent) say that if possible they would never go to the bank to conduct a financial transaction.
Risk Perception
Forty-six percent cited security as a concern with online banking transactions of which fourteen percent report that their concerns keep them from banking online. CashEdge Risk Monitoring offers the industry’s most comprehensive process for mitigating online banking risk by detecting fraudulent online transactions before they are executed, and identifying all related fraudulent activity through a sophisticated linked analysis. By leveraging CashEdge’s expertise and ability to absorb risk, banks can eliminate the problem, as well as the perception.
About CashEdge’s Second Annual Consumer Online Banking Survey
Commissioned by CashEdge, the study polled more than 400 consumer "heads-of-household" nationwide who use online banking capabilities. These respondents described themselves as bank customers (79%), credit union members (18%) and customers of "direct/virtual banks" (3%).
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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