Online Banking Leads to Higher Customer Satisfaction

The more consumers use online banking to handle their banking tasks, the more satisfied they are with their bank, according to a study by Gomez, Inc.

The study, “Customer Satisfaction in Online Banking: An Exercise in Relationship Management,” found that online bankers have an average satisfaction level of 5.1 on a scale of 1 to 7, with mature online banking consumers (over age 55) and those who use the Internet as their primary means of banking reporting higher levels of satisfaction.

“Online bankers who perform the majority of their banking tasks via the Internet are realizing the time-savings and at-your-service availability of information that the Internet delivers,” said Moriah Campbell-Holt, lead research analyst for Gomez who co-authored the study.

Among the findings of the Gomez survey:

• Almost 31 percent of online bankers with low satisfaction have considered switching banks based on their Web experience.
• There is a significant lack of awareness among online bankers about the specifics of their online banking service. For example, 50.2 percent of online bankers are unsure whether or not their primary bank offers online stop payment capabilities.
• Online bankers who stop using online banking cite lack of benefit, convenience or interest; concern about Internet security; and unreliable site performance as top reasons why they stopped accessing their accounts online.

“Given the high level of concern with Internet security, banks need to emphasize the measures they have taken to protect their customer’s online experience and reinforce these messages in a clear and consistent language,” said Campbell-Holt.

One of the biggest problems among consumers is lack of awareness of online banking services. According to Campbell-Holt many online banking customers are unaware of the full scope of their bank’s offering and cannot derive benefit and value until banks give them a good reason to bank online.

The Gomez findings show signs of hope for banks and other financial institutions who were hoping to save money on customer service by moving services online. Research by firms such as Cyber Dialogue and TowerGroup has found that, in reality, consumers have continued to use branch banking and other offline channels in addition to online banking, rather than using the Internet as a replacement.

The majority of U.S. households use either two (26 percent), three (24 percent) or four (20 percent) different delivery channels to conduct their financial services business, the TowerGroup study found.