• by Jack Loechner , Staff Writer @mp_research, May 4, 2003

Online Bill Payment Users Stay With Their Bank

Agencies serving the banking industry will be interested in the fact that new comScore research found that online bill payment users were more than twice as likely to remain active online banking customers compared to non-bill payment users. The comScore research transcends simple "unique visitor" metrics by quantifying actual, active usage of bill payment services. Online banking customers who did not use their bank's bill payment services showed an online attrition rate** of 34 percent, compared to only 16 percent for those who were active bill payment users.

The comScore analysis also revealed that online users of online bill payment services hold an average account balance of approximately $4,800, which is double the $2,400 balance carried by the average online banking customer. Further, comScore found that younger and higher income consumers are more prone to use online bill payment services.

The research revealed that approximately 20 percent of U.S. Internet users in Q4 2002 were active online banking customers.* Approximately 12 percent of these customers paid at least one bill through their bank's online bill payment service during this period, which represents an increase in the number of customers of 42 percent since the first quarter of 2002.

"The rate at which consumers are adopting online banking and bill payment services ranks these two activities among the fastest growing on the Internet," noted Mike Sinco, director of analytics for comScore Financial Services Solutions.

Among the major banks studied, Bank of America is the clear leader in the rate of adoption of online bill payment, with more than 25 percent of the bank's online customers making an online bill payment in the fourth quarter. Bank of America also leads the industry based on overall number of active online customers, followed by Wells Fargo and Citibank. Fleet has also demonstrated success in converting a relatively high percentage of online customers to using their online bill pay service.

You can find out more here.

*Active online banking customer defined as having conducted an actual online account query at least once during the quarter.

**Attrition is defined as a consumer who was an active online banking customer in Q2 2002 and was not an active online customer at the same site in Q4 2002.