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Online banking set for increased IT spending in 2010

22 December 2009  |  16379 views  |  3 office workers

Online banking executives in the US are anticipating budgetary windfalls for 2010 as banks look to the Internet as a powerful channel for re-engaging with existing and prospective customers.

A new report from Aite Group, which is based on interviews with senior online channel executives from 20 of the 100 largest US banks, reveals that the majority are optimistic about their budgets for 2010.

Among the banks surveyed, half anticipate budget increases more than 15% higher than 2009 budgets, while a further 35% expect to see spending rise by between five and 15%. Only 15% forecast no change in spending and none of the sample expect their budgets to be cut.

Driving this renewed focus is a stronger commitment from senior management, according to interviewees, and a desire to improve their bank's ability to integrate sales, service and the customer experience across channels.

However, banks will pursue different online strategies, says Aite. Some will pinpoint online sales and marketing, while others will focus on online service or improving the customer experience.

"Despite the attention that the online channel has received and its promise to revolutionize traditional banking, many banks have never truly embraced it as a primary channel for customer interactions and transactions," says Ron Shevlin, senior analyst with Aite Group and author of this report. "The tide is finally turning. The combination of two forces - banks waking up to the reality of consumer behavior, and the ascent of a younger group of managers with a more accepting view of technology - is finally helping to bring about this change."

Comments: (3)

Bo Harald
Bo Harald - ZEF, Transmeri, Demos, Real Time Economy Program - Helsinki Region | 22 December, 2009, 11:14

In the old days - especially in the 80s before Internet - e-banking was seen as a supplementary channel - in addition to branches and contact centres. Today it is the main channel for almost all services - both for the customer in his private role and in employee roles of so called corporate customers. All banks have not yet adjusted their strategies accordingly...

more in my blogpost some time ago

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A Finextra member
A Finextra member | 22 December, 2009, 12:48

Interesting insight. I am just wondering what's the percentage (if any) will be channelled to creating the mobile as an integrated service channel?

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Bo Harald
Bo Harald - ZEF, Transmeri, Demos, Real Time Economy Program - Helsinki Region | 23 December, 2009, 05:49

internet banking will increasingly happen in mobile devices as devices become more of computers - even if the e-banking-on-PC-habit prison in the developed world is difficult to escape from.

One day the mobile devices will replace plastic cards of all sorts and that is naturally an important part of banks' customer service. Even before that my prediction is that notifications to the omnipresent mobile (for e-invoices, balances, transactions etc) will be major development.

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