NEW YORK--(BUSINESS WIRE)--Online banking is now the go-to channel for checking account balances, transferring funds, and researching bank products for well over half of the US population according to US Consumer Preferences in Retail Banking Distribution, Part 2: Digital Channels (www.novarica.com/specialreportbanking_digitalchannels/), a new special report published today by Novarica, a research and advisory division of Novantas, LLC.
"With certain online banking interactions up over 25% over the last five years and mobile interactions gaining ground quickly (albeit from a smaller base), banks must look to streamline the consumer experience across all bank channels," said Madhavi (Madi) Mantha, head of banking research at Novarica and co-author of the report with Novantas partner Kevin Travis and principal Ethan Teas. "Banks can no longer afford to view digital channels as alternate channels – they must be treated as a primary destination."
"Banks face a critical balancing act with regards to mobile delivery specifically. On the one hand, if they fail to invest adequately, they risk being left behind as the mobile device joins the Internet as a central conduit for the consumer banking relationship. Yet on the other hand, scarce resources could be wasted on features and functionality that ultimately do not improve customer acquisition, retention or relationship profitability," said Mr. Travis. He adds, “It is not too early to begin preparing for the day (inevitable, in our view) when the volume of high-value remote banking transactions goes from a trickle to a flood. For the many banks just now getting into the game, this calls for building a customer-informed mobile foundation that looks beyond features and functions du jour.”
"The IT investments required by banks to upgrade their online banking platform to the next level and to deploy or enhance a solid mobile banking solution in order to meet evolving customer expectations are not insignificant. The good news is that banks should be able to leverage certain investments – customer segmentation and analytics, sales automation, and workflow, for example – across both physical and digital channels," added Ms. Mantha.
Ms. Mantha will present the findings of the report at the Novarica Retail Distribution Technology Forum in New York City on July 20, 2011. This event will also feature a discussion of channel technology strategy with bank CIOs including those from Sun National, Graystone Tower, Team Capital, and former senior executives from PNC, Bank America, and Zionsbancorp. For more information and to register, see: http://www.novarica.com/bankingforumjuly2011/
About the Report
This series of reports are based on the 2010 Novantas/Novarica Survey of Consumer Preferences in Retail Banking Distribution, a proprietary survey, which included feedback from 2,850 US domestic consumer households, with respondents comprising a statistically valid sample across age, income, and geographic dimensions. The previous report (available at http://www.novarica.com/specialreportbanking_physicalchannels/) examined banks’ physical channels and the third report in the series will more closely examine each of the eight preference segments that Novantas analysis has identified.
About Novarica and Novantas LLC
Novarica provides information, insights, and perspective on markets, operations, and technology to bank and insurance executives and project teams. The company delivers its service through published research, retained advisory services, and project-based consulting. Novarica’s research includes market and trend analyses, best practices research, case studies, and independent analyses of software vendors serving insurance and banking. Novarica’s Banking Advisory Board includes former executives from Bank of America, PNC Bank, Zions Bancorporation, Capital One, Republic Bank, and USAlliance Federal Credit Union.
Novarica may be reached at 212-419-2520 or www.novarica.com.
Novarica is a division of Novantas LLC, the acknowledged leader in customer science and revenue strategy in the financial services industry. The firm specializes in investigating and interpreting customer needs, attitudes and behaviors in ways that help companies to refine marketing decisions, customer strategies, and sales and service activities.
Novantas may be reached at 212-953-4444 or www.novantas.com.