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"Increased joblessness, the credit crisis and the overall poor health of
the U.S. economy have taken their toll on consumers and their bank accounts,"
said
In general, engagement at many of the top banking sites declined in Q3 2008 versus a year ago. Four out of the top 5 online banking sites experienced declines in the average number of minutes spent per visitor in the third quarter of 2008 versus year ago, with Wachovia down 12 percent and JP Morgan Chase down 8 percent.
Engagement Among Liquid Deposit Account (LDA)* Customers on Top 5 Online U.S. Banking Sites** Q3 2008 vs. Q3 2007 Total U.S. - Home/Work/University Locations Source: comScore Quarterly Bank Benchmarker Minutes Per Visitor Percent Banking Sites** Q3 2007 Q3 2008 Change Bank of America 117.9 110.3 -6% Wells Fargo 89.8 83.7 -7% JPMorgan Chase 92.6 85.4 -8% Wachovia 81.2 71.1 -12% WaMu 73.5 74.9 2% * Liquid deposit account (LDA) customers are customers that accessed a checking, savings, or money market account at the financial institution during the time period. ** Top 5 online U.S. banking sites ranked by the number of LDA customers at the financial institution in Q3 2008; data reports entities independent of recent bank mergers.
For marketers in this industry who have relied on engaged visits from customers to build loyalty and to cross-sell additional products and services, this decrease in time spent per site visit creates a significant marketing challenge in attracting consumers' time and attention. This is compounded by the ongoing banking crisis, which is causing a significant tightening in banks' marketing budgets at a time when consumers' confidence in their banks is being tested. While presenting a challenge for some, it is also an opportunity for competitors to target and acquire customers seeking a safe haven for their diminished assets.
Competition Intensifies as the Industry Consolidates
With many of the recent bank mergers -- including big industry players like JP Morgan Chase and WaMu and Wells Fargo and Wachovia -- the U.S. banking landscape is being altered dramatically. In the third quarter of 2007, the top three online banks accounted for nearly 60 percent of all of the customers of the top 10 online banks. After accounting for the impact of these bank mergers, however, the top three banks increased their share to 80 percent.
Share of Liquid Deposit Account (LDA)* Customers Among Top 10 Online** U.S. Banking Sites Q3 2008 vs. Q3 2007 Total U.S. - Home/Work/University Locations Source: comScore Quarterly Bank Benchmarker Top Online Banks Q3 2007 Top Online Banks Q3 2008*** Bank of America 31.9% Bank of America 31.8% Wells Fargo 17.4% Wells Fargo (includes Wachovia)* 27.7% JP Morgan Chase 10.5% JP Morgan Chase (includes WaMu) 21.0% All Others 40.2% All Others 19.5% Total 100.0% Total 100% * Liquid deposit account (LDA) customers are customers that accessed a checking, savings, or money market account at the financial institution during the time period. ** Top 10 online U.S. banking sites ranked by the number of LDA customers at the financial institution during the given time period. ***Data represents shifts that will occur as a result of the implementation of the merged firms, including the Wells Fargo and Wachovia merger, which occurred in October 2008; note: Q4 2008 data is not yet publicly available.
This new competitive landscape, along with banks' thirst for capital in
today's economic environment, has prompted many to adjust their marketing
budgets and their strategies. Larger banks are launching aggressive
customer-acquisition campaigns, offering significant monetary incentives,
often in the amount of
"In this time of uncertainty and change in the industry, many of these firms, regardless of their marketing strategies or business objectives, are turning to the Internet," said Trudeau. "They realize this medium provides a more cost effective, efficient and flexible channel than the traditional bank branch, and represents a way in which they can more efficiently and effectively reach their target audience and communicate their distinct value proposition."
comScore will highlight additional study results and share case examples
of the ways banks are using the online channel during a live webinar entitled
"comScore's State of Online Banking" on
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SOURCE comScore, Inc.