Last year we led the annual planning issues with the title, “”The Honeymoon is Over”” (OBR 52). What we meant was that competition had yet to become intense in the online banking sector. In looking back over the past 12 months, we can see that competition has indeed intensified. But overall, there has still been little market share gained by Net pioneers. In mid-1999, we estimated that fewer than 400,000 households, less than 5% of those banking online had switched accounts to Net-oriented brands. A year later that number has grown to about 700,000, or 7% of those banking on the Web. If you include the P2P payment-only accounts at X.com/PayPal and others, the total rises to 2.5 million or 21% of those banking on the Internet. (see the table in OBR 60, p. 1 for a three-year forecast, subscription required).
2001 Strategy Matrix
So you’ve made it through another year; your Web site is growing, no one is talking about how Wingspan is going to take over the Web. In fact, with the crash in B2C Internet stocks, the pressure may seem to have eased. Don’t bet on it. You will need to work harder than ever next year just to maintain share in the face of the growing popularity of truly virtual banking services such as statement aggregation and email payments. We’ve updated the 2001 Strategy Matrix (OBR 60, subscription requried) to help you make sure you’ve covered all the opportunities.
Contents
• Online Banking at Mid-Year
• Effective Planning
• Conference calendar
• Research companies • Online Banking User Needs Matrix
• Online Strategy Matrix
• Increase new product sales
• Upsell existing products
• Increase customer retention
• Improve brand awareness online
• Improve financial performance
• Fee-Based Product Matrix
• Eleven Quick Hits for 2000
• Scorecard: P2P Payments on eBay
• Net-Only Bank Watch
• Winning Web from Legacy Bank