CashEdge Annual Consumer Survey Reveals Increasing Adoption and Growing Interest Among Consumers for Online Funds Transfers
Consumer Interest Includes Person-to-Person Payments and Mobile Banking
New York - October 14, 2008 — CashEdge Inc. (www.cashedge.com), the leading provider of Intelligent Money MovementT services, announced today that results from its third annual Consumer Online Banking Survey demonstrate an increasing demand for online funds transfer services among consumers, compared to survey results from the previous two years. Additionally, the survey revealed growing interest in person-to-person online payments and mobile banking. Initially released at the CashEdge Client Conference, Innovation 2008, the study examined the behavior and preferences of more than 425 consumers who use online banking functions.
“For the third consecutive year, consumers are expressing to us the high value that online funds transfer services provide,” said Sanjeev Dheer, CEO of CashEdge. “Their responses reveal an increasing demand for, and adoption of, capabilities that offer them ease-of-use and convenience, particularly online account opening and multiple online funds transfer capabilities. With growing consumer demand for moving money online, banks that offer services through the online channel are gaining a competitive advantage in the industry. And this year’s survey shows strong support for our belief that the financial institutions that lead the market in this area, particularly in online funds transfer services, have the opportunity to garner a disproportionate share of profitable and loyal customers.”
The results of the third annual survey revealed a strong desire among consumers to open and fund accounts online and a desire for more online funds transfer capabilities. Among the study’s most significant findings are:
Expecting Online Account Opening
Fifty-eight percent of respondents have opened an account online and would like to do so again. Another 25 percent did not open their accounts online, but would do so if that option were available. The vast majority (82 percent) of respondents said that they expect their bank to offer the ability to open accounts online.
Demanding Real-Time Results and Cross-Channel Capabilities
Most respondents (73 percent) expect to have same-day access to, and availability of, a newly opened account (31 percent of which expect the account to be available immediately). In addition, when asked what they would do if they got stuck opening an account online, 46 percent would call the bank for help, showing the need for cross-channel integration.
Moving Money Online
Respondents are moving their money for a variety of reasons, including: to transfer money to a checking account (e.g., to pay bills) (66 percent), to transfer money to a general purpose savings account (52 percent) and to take advantage of a higher interest rate (49 percent). They are also demanding additional funds transfer services, including the ability to transfer funds to their friends and family: 88 percent expressed interest in funds transfers to other people, such as friends and family, in lieu of cash or check, using account information provided by the recipient
Building Momentum for Online Funds Transfer
Forty-five percent of respondents report using online funds transfers (compared to 37 percent in 2007). Ninety-five percent of respondents have accounts housed at more than one financial institution - the results showing a steady shift toward consumers interacting with more financial institutions (68 percent have accounts at three or more institutions).
Going Mobile
When respondents were asked how they perceive mobile banking, nearly 60 percent said that they feel mobile banking is equally secure or more secure than online banking. When asked how likely they would be to use mobile banking technology, if offered by their bank, the respondents revealed similar results - 60 percent would be likely to use (21 percent would be extremely likely to use, and 39 percent would be likely to use).
About CashEdge’s Third Annual Consumer Online Banking Survey
Commissioned by CashEdge, the study polled more than 425 consumer "heads-of-household" nationwide who use online banking capabilities. These respondents described themselves as bank customers (77 percent), credit union members (19 percent) and customers of "direct/virtual banks" (4 percent).
For the full results summary of the findings highlighted in this release and of others not included, please contact Jennifer Moritz at Jmoritz@0to5.com.
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.
The company currently serves hundreds of leading financial institutions including 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, visit www.cashedge.com.
Contact:
Jennifer Moritz
Zer0 to 5ive
917-748-4006
jmoritz@0to5.com