Online bill payers more economically valuable than offline customers - Digital Insight

Source: Digital Insight

Digital Insight Corp. (Nasdaq: DGIN), the leading online banking provider, announced today the results of an in-depth research study that demonstrates online bill payment users provide significantly greater return than offline customers and represent the most attractive customer demographic for financial institutions.

"Online bill payers have deeper, more valuable relationships with their financial institution than offline customers - an important strategic insight that can positively impact the business results of financial institutions," said Digital Insight Director of Engineering Paul Witman, who led data collection and analysis for the study. "Digital Insight clients derive significant economic benefit from concentrated efforts to serve, retain and cross-sell products to online bill payment users. These users are far more valuable customers than their offline counterparts."

Today, Digital Insight reported the following client study results, which were measured across financial institutions that, in aggregate, serve more than a half million account-holders:

  • Online bill payment users maintained aggregate balances 257% greater, on average, than offline customers.
  • Online bill payment users maintained deposit balances 205% greater, on average, than offline customers.
  • Online bill payment users maintained loan balances 284% greater, on average, than offline customers.
  • Financial institutions participating in the study retained online bill payment users at a rate up to 78% higher than offline customers.
  • In summary, financial institutions derive significantly greater per-customer benefit from online bill payment users than from offline customers. These benefits are realized through higher retention rates, average deposit and loan balances and an increased ability to sell products and services online to a receptive customer.

"We've been saying this for some time: financial institutions that want to compete and win in today's challenging marketplace must harness the powerful growth potential of the online channel, and specifically online bill payment users," said Digital Insight Chairman, President and CEO Jeff Stiefler. "Given our unique position in the marketplace - at the intersection between financial institutions and leading technology providers - and our successful relationships with the leading core processors, Digital Insight continues to arm our clients with the knowledge and on-demand capabilities needed to deliver the products and services these most valuable customers want from their bank or credit union."

"The data measured by Digital Insight underscores the benefits available to financial institutions with the technological tools, knowledge and discipline to prosper online," said ESL Federal Credit Union Senior Vice President and CIO Mike Armbruster, whose institution participated in the study. "By partnering with Digital Insight, we not only ensure our members receive a superior online banking experience, we gain the insight necessary to plan and execute our strategic growth as an institution."

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