Members who pay bills online are a lot more than just fast-adopters and bring real value to the credit union, according to a new study.
"Online bill payers have deeper, more valuable relationships with their financial institution than offline customers-an important strategic insight that can positively impact the business results of financial institutions," said Digital Insight Director of Engineering Paul Witman, who led data collection and analysis for the study. "Digital Insight clients derive significant economic benefit from concentrated efforts to serve, retain and cross-sell products to online bill payment users. These users are far more valuable customers than their offline counterparts."
Among the other findings released by Digital Insight:
* Online bill payment users maintained aggregate balances 257% greater, on average, than offline members.
* Online bill payment users maintained deposit balances 205% greater, on average, than offline members.
* Online bill payment users maintained loan balances 284% greater, on average, than offline members.
* Financial institutions participating in the study retained online bill payment users at a rate up to 78% higher than offline members.
" In summary, financial institutions derive significantly greater per-customer benefit from online bill payment users than from offline members," said Digital Insight. "These benefits are realized through higher retention rates, average deposit and loan balances and an increased ability to sell products and services online to a receptive customer."
