28 Hoosier Banker December 2015 OPERATIONS / TECHNOLOGY Digital channels have become an integral part of the banking industry. In today’s environment, it would be hard to imagine a relationship with a primary financial institution (PFI) without these channels. Based on data shared through The Financial Brand earlier this year, and at The Financial Brand Forum in May, 60 percent of global customers primarily use online channels. This finding is in line with Haberfeld Associates’ research of several million U.S. checking households. Unlike most available benchmarks, this data is driven strictly by community banks and credit unions. (See Chart 1.) Financial industry marketers and executives often say they want to attract younger customer segments and consumers who will be more driven by nontraditional channels ‒ millennials, young professionals, etc. ‒ and may seek the answer through online channels. If customer acquisition is the goal, however, transitioning from transactional to digital channels may be the wrong path. New PFI Relationships ‒ Online vs.Traditional For more than two years, Haberfeld Associates tracked traditional and online checking account openings at more than 15 financial institutions, ranging from $200 million in assets to over $5 billion. All FIs in the study considered customer acquisition a strategic priority. They invested marketing dollars into traditional marketing, in branches and through direct mail, as well as via digital channels. Most also have been active in social media. During the study, participating FIs opened 340,384 core consumer relationships in the form of checking accounts, which equals approximately 350 per branch per year. Of these accounts, 8,867 were opened online. • Number of new PFI relationships (checking accounts) in the first six months of 2015: The FIs in this case study opened About the Author Achim Griesel is chief operating officer of Haberfeld Associates. He manages client and vendor relations and other areas of the company, which provides consulting, marketing and training services for community financial institutions. Griesel earned degrees in accounting and management in Germany and has completed the Advanced School of Banking, sponsored by the Nebraska and Kansas bankers associations. The author can be reached at 402-323-3793, email: achim@haberfeld. com. Haberfeld Associates is an associate member of the Indiana Bankers Association. Online Accounts – Perception vs. Reality 78.56% 65.51% 60.28% 59.05% 38.06% 30.42% 19.65% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% Core Rela5onship -‐ Product Usage
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