Online banks fight for the customers

In order to seek more creative and cost efficient marketing strategies U. S. online banks have to be more inventive. comScore, Inc. known as a leader in measuring the digital world, released a study of the U.S. online banking industry. It was found that the weak economy's impact on consumer finances as well as banking crisis have affected the online banking industry. So it became challenging for banks to attract new customers and cross-sell to existing clients. 

According to Marc Trudeau, senior director, Financial Services, comScore, Inc. 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. It was observed that Americans have less cash, spend less and have experienced a significant decline in the value of their assets. It resulted that consumers manage their finances online, such as less frequent and shorter visits to their banking Web site, which has significant implications for marketers trying to reach new and existing customers. 
In fact 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.

This competitive environment force online banks be more creative. Moreover, it 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 $75, $100 and even $200, to customers willing to open an account with the bank. 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.