Digital Banking Is a Win-Win
Intuit Data Shows Consumers Who Bank Online Are Happy, More Loyal and More
MOUNTAIN VIEW, Calif. -- December 17, 2012
Think online or mobile banking is just for Gen X or Gen Y? Think again.
Once baby boomers and seniors become active online, they use online banking
services, such as digital payments and personal financial management
offerings, just as often as the younger Gen X and Gen Y consumers. That’s
important news for financial institutions that want to retain customers and
grow their business. Intuit Inc. (Nasdaq: INTU) data shows that people who
bank online and via their mobile and tablet devices log in about 30 times a
month and are more profitable to a financial institution than those who don’t
These are among the findings of a comprehensive, ongoing Intuit Financial
Services study of financial institution customer engagement and value. Updated
quarterly, Intuit’s analysis provides a deep view of banking customer
behaviors across several categories: online and mobile interaction, personal
financial management, debit card transactions, digital payments and rewards,
“Consumers and small businesses want helpful insights from their financial
institution anytime, anywhere and on any device,” said Russell Lester,
director of analytics at Intuit Financial Services. “Extending the branch
experience digitally lets consumers and small businesses do their banking
easily on any number of devices in ways that they never could in the past.
Financial institutions should rethink how they allocate funds and recognize
the value these solutions deliver. The data is clear – greater engagement via
digital channels leads to better financial outcomes for the user and the
Additional data points from Intuit’s study include:
*More mobility, more logins: People who banked online – those signing in
from a desktop computer – logged in roughly 10 times a month. Mobile
banking users increased the number to approximately 19 times a month. That
jumps to 31 times per month, when logins from tablets are added to the
*When looking at Boomers and Seniors in a supplemental study, Intuit
found they login 11 and 12 times a month respectively. And, these
consumers access their financial information every third day.
*Higher engagement, better financial outcomes: Highly engaged consumers of
Intuit clients that used multiple digital banking devices to access their
services were 61 percent more profitable than offline customers.
*Better retention: Financial institutions were 2 percent more likely to
retain Intuit online bill pay customers over the course of a year,
resulting in up to $150,000 plus in cost savings to a mid-sized financial
institution annually. Research reports indicate firms spend $150-$200 to
acquire a new checking customer.
*Plastic pays: The average Intuit Purchase Rewards consumer generated 47
percent more monthly debit card purchases than those online customers who
didn’t use Purchase Rewards. This produced an estimated additional $50 of
interchange fee income each year per consumer for financial institutions.
Profitability Analysis Methodology
To conduct its profitability analysis, Intuit Financial Services measures data
from financial institutions’ personal customer base. Offered exclusively to
bank and credit union customers of Intuit, the annual analysis provides
insights into their customer or members’ current banking behavior, helping
financial institutions better tailor their products and services. The data
includes information from approximately 50 financial institutions collected
from July 2009 through September 2012, representing more than 2.5 million
consumers with a checking account.
“Most financial institutions measure from too narrow a perspective, including
only items such as Web site traffic and online and mobile enrollments,” said
Jason Weinick, senior analyst for Intuit Financial Services. “By adding the
metrics that matter, such as relationship depth, debit card usage and
demographics, financial institutions get the data they need to get a complete
financial analysis and ultimately increase their bottom line.”
Learn more banking insights at Banking.com.
Follow Intuit Financial Services at FinanceWorks on Twitter.
Read more on the impact of Baby Boomers and Seniors on online banking
About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management
solutions for small and mid-sized businesses; financial institutions,
including banks and credit unions; consumers and accounting professionals. Its
flagship products and services, including QuickBooks®, Quicken® and TurboTax®,
simplify small business management and payroll processing, personal finance,
and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading
tax preparation offerings for professional accountants. Intuit Financial
Services helps banks and credit unions grow by offering innovative online and
mobile banking solutions that make it easier for consumers and businesses to
manage their money.
Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year
2012. The company has approximately 8,000 employees with major offices in the
United States, Canada, the United Kingdom, India and other locations. More
information can be found at www.intuit.com.
About Intuit Financial Services
Intuit Financial Services helps banks and credit unions grow by offering
innovative online and mobile banking solutions that make it easier for
consumers and businesses to manage their money. Applying more than three
decades of customer insights and innovation to design its products, Intuit
provides solutions that help financial institutions achieve higher customer
engagement and profitability. Learn more at www.ifs.intuit.com.
Intuit and the Intuit logo, are registered trademarks and/or registered
service marks of Intuit Inc. in the United States and other countries. Other
parties' trademarks or service marks are the property of their respective
owners and should be treated as such.
Intuit Financial Services
Heather Almand, 770-656-7769
Naomi Hurley, 415-844-6273
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