29 Hoosier Banker December 2015 50,188 new checking accounts, of which 1,989, or 4.13 percent, were opened online. On average they opened 105 online accounts, which would result in a run-rate of 210 per year. On average 37.7 percent of online account openings were attracted though the traditional channel of direct mail. • Quality/type of customer: The average age of the new customer attracted from both channels was almost identical. (See Chart 2.) The online-acquired customers swiped their cards 35 percent more often, but both segments spent $40 per average debit card swipe. The online-acquired customer had a significantly higher number of overdrafts per year ‒ almost double. While there were some positive trends on fee revenue opportunities, the outlook was not as good regarding balances, share-of-wallet and customer retention. (See Chart 3.) Customers who opened their accounts online had significantly lower balances ‒ 41 percent lower checking deposits and 57 percent lower household deposits. On the flipside, they had higher loan balances, but still relatively small amounts. Finally, their retention was 16 percentage points lower than traditionally opened accounts. If your bank is considering online account opening, be aware that opening checking accounts online is not a simple solution to the industry’s desire to attract younger, tech-savvy customers. Instead, it appears likelier to result in more transitional and fee-based customers, and unlikely to materially drive new customer growth for your institution. For the foreseeable future, the branch, your people, your core products and your policies will have more meaningful impact on your success in customer acquisition. t Call SHAZAM today. SHAZAM is a financial services company offering you choice and flexibility to use the products and services that meet your needs, help you stay in control of your future and allow you to compete in the market. From debit cards to core processing to marketing services and more, we deliver. Delivering Unlimited Possibilities 855-314-1212 | shazam.net | @SHAZAMNetwork
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