As more customers utilize digital banking, including online and mobile banking and payments, financial institutions need to be able to quantify the value and incremental benefit. Fiserv recently collaborated with Bank of the West to conduct a Digital Engagement Intensity Study to evaluate the value of digital banking and engaged users over a two-year period.
"Financial institutions are operating in a world that moves faster than ever before, where consumers compare their digital banking service to all other digital experiences," said Matt Wilcox, senior vice president, marketing strategy and innovation, Fiserv. "Understanding digital banking activity and the value of these customers can help financial institutions determine where to invest in capabilities that engage and satisfy consumers."
The study evaluated the impact of enrollment in online banking, mobile banking, online bill pay, person-to-person payments and account-to-account transfers on revenue, product engagement, attrition and transactions.
The study revealed that use of digital banking drives:
Among highly engaged customers in the study, average monthly revenue jumped 13.1 percent after digital enrollment. The study defines highly engaged customers as those who have the longest tenure, make the most transactions and generate the highest revenue.
After digital banking enrollment, increasing the degree of engagement is the next most crucial factor in driving higher value, including increased revenue and lowered attrition.