The new Internet generation of online-only customers and readers, along with businesses eager to explore their information technology options, is growing.
Up to 70% of adults who use the Internet also use online banking, and only 7% of those who have signed up do not use it. Findings from Mintel Comperemedia also show that 30% of online bankers log on to pay their mortgages or credit cards.
According to Mintel vice president of financial services, Susan Wolfe, "Despite the high penetration, banks still are eager to increase the usage of online banking." Banks are keen to pull in more users, she says, because online banking creates deeper relationships between banks and customers.
And demand for automation is universal among individuals and businesses.
Mortgage veteran Brian King of Wisemar Inc. wrote that in recent months he has seen industry vendors and financial services executives share "a renewed focus on technology evaluation and selection."
The obvious reason is that firms must continue to improve profitability and carefully manage expenses, so "business executives seek technology solutions that will automate manual processes and enable their employees to be more productive."
It also is good times for financial services vendors eager to develop and deploy new solutions while seeking new clients, he wrote.
King also quoted similar findings.
Forrester Research indicates information technology software and infrastructure spending will increase by over 9% in 2010, while Gartner also predicts more IT spending this year by financial services firms.
Mintel found almost half, or 45%, of adults with access to the Internet "have bypassed their banks' online bill payment service" to go directly to the biller's website, while 22% of online banking customers "never paid a bill online."
Such findings imply further increases in demand for electronic documents and billing options. As of now, at least 93% of the Mintel study participants use online banking to check balances, 38% use it to receive alerts and 65% to transfer money.
Mintel maintains that customers need to receive more than the 3.5 electronic documents a month they receive now, so the average of such monthly bills could increase in payment services.
Electronic bills are a way banks can ensure "customers continually return" to their sites and rely on banks for services rather than turning to third party service providers, Wolfe says.
"Customers opt to pay bills on the biller's website because their statement is readily available." So if banks provided the same thing, she argues, there is a chance customer usage of online bill pay services will increase.
Similarly businesses looking for more information technology options have a give-and-take relationship with vendors.
King notes that often banks meet with one vendor and sign the agreement over coffee, but "most technology decisions" require quite a bit more effort. "It is advised that bankers stop, look and listen."
