A Look At The Value of Online Bill Payment To Banks

"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."

Today, Digital Insight reported the following client study results, which were measured across financial institutions that, in aggregate, serve more than a half million account-holders:

• Online bill payment users maintained aggregate balances 257% greater, on average, than offline customers.

• Online bill payment users maintained deposit balances 205% greater, on average, than offline customers.

• Online bill payment users maintained loan balances 284% greater, on average, than offline customers.

• Financial institutions participating in the study retained online bill payment users at a rate up to 78% higher than offline customers.

• In summary, financial institutions derive significantly greater per-customer benefit from online bill payment users than from offline customers. 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.

"We've been saying this for some time: financial institutions that want to compete and win in today's challenging marketplace must harness the powerful growth potential of the online channel, and specifically online bill payment users," said Digital Insight Chairman, President and CEO Jeff Stiefler.