Banking crisis inspires for online banking innovation

39 percent segment of the Internet banking market is leaded by three banks: Bank of America, Wells Fargo and JPMorgan Chase. It is the result of recent survey that was purposed to develop the online banking department in the US. Banking crisis and difficult financial time itself make banks and other financial institutions unite and merger. As a result Bank of America purchased Merrill Lynch and Wells Fargo acquired Wachovia in October 2008, while JPMorgan Chase announced the acquisition of Washington Mutual Savings Bank at the end of September 2008. 

In order to fulfill customers’ expectations the three major online banking services providers will face the necessity to develop new acquisitions rather than working on online banking innovations. The new acquisitions and mergers of those three banks are needed to be assimilated and developed. And that means that small-to mid-size banks and credit unions will get more opportunities in development of online banking innovations. Moreover, even though smaller banks are less powerful than financial giants they rank higher than their larger competitors with regard to consumer trust.

According to the research of strategy consulting company Javelin, 90 percent surveyed consumers consider online security measures provided by credit unions as good, while the security features were marked as good by 78 percent of respondents. 

However, today smaller financial institutions have more opportunities to work on developing innovative online banking services and satisfy the demands and needs of their users. Online banking competition causes more secure internet banking environment for customers and technologically improved online business bases for banks and credit unions.