Online consumers ready to consolidate accounts says Jupiter

Online consumers ready to consolidate accounts says Jupiter

Almost half of all online financial consumers in the US have no qualms about consolidating their accounts at a single institution, reports Jupiter Media Matrix.

According to Jupiter analysts, consumers will consolidate their accounts with one institution as diverse financial offerings - such as banking, lending, brokerage and insurance - continue to integrate and mature.

"The financial concierge model, where institutions offer a wide range of products and services through relationship management and targeted marketing, will drive increased consolidation among online financial providers," says Raj Dhinsa, Jupiter analyst. "With the US having one of the highest bank-to-citizen ratios, institutions must create highly tailored online offerings to secure long-term customer relationships and ultimately survive an increasingly competitive market."

According to the survey, the few online financial consumers who do have concerns about account consolidation primarily cite institutional instability (18 percent), excessive sales solicitation (11 percent) and the effort required to shift accounts (11 percent).

However, Jupiter analysts believe these concerns will eventually decrease, paving the way for greater industry consolidation and convergence.

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