Online Bank Bill Payment in USA

comScore Networks in the USA has announced the results of the first industry-wide study of the impact of consumer online banking and bill payment activity upon bank business performance. The comScore research aims to quantify actual, active usage of 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. 'However, individual banks are achieving varying degrees of success in bringing customers online.'

Among the 11 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.

comScore found that online bill payment users were more than twice as likely to remain active online banking customers compared to non-bill payment users. 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.

'Bringing customers online and engaging them with online bill-pay creates true economic value for banks, many of which are aggressively promoting such services,' explained Chris Britt, vice president of comScore Financial Services Solutions. 'Equipped with a fact-based understanding of consumer activity across the online financial marketplace, comScore's clients are better able to guide their product and promotional investments.'

The comScore analysis is based on the comScore Global Network, which captures the complete Internet activity of a representative cross-section of more than 1.5 million global Internet users. This technology combines an industry-endorsed random digit dial (RDD) sampling methodology with massive population samples across key home, work, university and non-U.S. locations.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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