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New Accounts Using New Methods
The Internet continues to plow new pathways for banks as well as to redirect old roads to the new superhighway.
One obstacle for many banks hoping to encourage consumers to open Internet-based checking accounts has been getting people to actually send in the checks that will open the account. Deluxe Corp. says that financial institutions are reporting that 70 to 85 percent of accounts applied for online are never used because consumers don't get around to sending in the checks, and they find the forms they have to fill out cumbersome. By comparison, an Internet survey conducted for Deluxe found that 80 percent of respondents said they would likely use a service that would allow them to transfer funds electronically from accounts at financial institutions.
The service Deluxe is testing with Bank One allows consumers to fund new accounts from another financial institution's account over the Internet. At the same time, the software/Internet system can verify the applicant's identity, score for risk, target cross-selling efforts and allow checks to be ordered. Identity is confirmed via a service that uses Deluxe's Debit Bureau™ a comprehensive database of information such as check ordering histories, check-writing histories, account opening and closing data, and information on lost or stolen checks. At the same time, the Deluxe checking account opening service also confirms identity via information from credit bureaus. The mix of debit and credit information is then used to predict likelihood of an account being closed.
Meanwhile, lest you think the days of direct marketing may be falling to the wayside as Internet banking, advertising, and marketing partnerships take over, never forget that most of what can be done via paper can be put on the Web.
Wells Fargo recently selected Annuncio LiveJ to pilot a series of direct marketing campaigns via the Internet to its business customers. To kick-off the campaign, the bank initiated a customer satisfaction survey. Annuncio will use the data it gathers to develop a profile database to conduct personalized follow-ups with customers. The data is also being sent to Wells Fargo Customer Relationship Managers so that they will have more relevant interaction with customers.
Of course there is still the challenge of getting customers to answer the survey. But Wells Fargo is hoping the information gathered will serve as a base for developing strong customer relationships. In the works for future direct marketing efforts is an e-newsletter targeted to individual customer interests.
Copyright © 2000 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 10, No. 2, 2/00
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