Who is the Internet Home Banking Member?

As credit unions continue to embrace the emerging technology of online banking, the question that now comes to the forefront of this hot topic is Who is the Internet home banking member? Demographic studies that profile online banking users have found that although there is a direct correlation between members who use Internet banking and those who have a greater net worth, higher balance, and more credit union products, this is not the determining factor in finding a target market who will utilize this technology solution.

 
 

As credit unions continue to embrace the emerging technology of online banking, the question that now comes to the forefront of this hot topic is ''Who is the Internet home banking member?'' Demographic studies that profile online banking users have found that although there is a direct correlation between members who use Internet banking and those who have a greater net worth, higher balance, and more credit union products, this is not the determining factor in finding a target market who will utilize this technology solution.

According to Paul Murphy, an Internet banking and Bill pay consultant, the key to finding members that will embrace Internet home banking is asking one simple question, ''How comfortable are your members with computers, the Internet, and completing transactions online?'' Using computer usage as a guide, Mr. Murphy extrapolates that Internet banking members can be divided into four groups: Proficient, Receptive, Tolerant, and Adverse.

With each group, there is a different way to broach the subject of online banking. For example, if a member indicates in their response that they are not regular Internet users and only use it to surf the web or do email, he or she is classified as ''tolerant''. A good way to proceed at this point would be to indicate that your credit union offers Internet banking and when they are ready to try it, you will be ready to help them get started.

Mr. Murphy identifies questions and responses for each type of online banking member and his article in the 2003 Credit Union Technology Survey contains a guide that will help credit union executives communicate with their members about this new service. Mr. Murphy's article ''Will the Real Internet Banking Member Please Stand Up'' is a must read for credit unions looking to expand into the realm of Internet home banking.

 

 

 

 

May 26, 2003


Comments

 
 
 
  • Since the vast majority of members have proven to not be receptive to online banking services, I think that it is more productive to focus on what can be done to create a comfortable and compelling migration path into the credit union’s online channel. Continuing to ask non-receptive members to take the leap of faith and jump directly into “the deep end of the pool” with online banking – regardless of how the messaging is spun -- seems to be a futile effort which will have little impact in accelerating online banking adoption.
    Anonymous
     
     
     
  • Did I miss the second page of this article
    Anonymous