Last month we began a two-part look at the role non-financial content can play in your online strategies. Our thinking on this subject has evolved during our three years of analyzing financial institution Web sites. When we made our first recommendations for the optimal feature-set for a financial institution Web in June 1995 (table below), we didn’t see the need for non-financial content beyond simple things such as community links and personal finance information.

Three years later, we still believe these twelve modules are the core of a good banking Web. But with more than 2,700 Webs in the U.S. alone if your strategic plans include increasing market share among online consumers, you must look beyond the basics. That’s why non-financial features deserve a second look. If nothing else, think of them as easier-to-implement placeholders while you wait for your I/S dept. or technology vendors to deliver more advanced financial analysis and personalization features to your Web.

1. Enhance/Differentiate your Online Banking Program: There are two problems facing online banking programs as they attempt to expand beyond the early adopter segment:

• Lack of REAL-WORLD benefits: The first 5% of your customer base, the so-called early adopters, don’t need to be sold on the advantages of banking online; they are adept at visualizing the benefits themselves. The other 95% are more of a challenge. They are pragmatic and not about to buy something new until they see real benefits in cost savings, time savings, or quality improvements. Simple to understand non-financial content, such as free email , can help you appeal to the pragmatists.
• Lack of differentiation: The problem with attracting new customers to your bank is that most online banking programs are very similar on the surface. Non-financial content can be used to develop a lengthy list of unique features to aid your online account acquisition efforts.

2. Improve your Position in Search Engine Results: The more diversity there is to your online content, the better your chances of being displayed prominently in search engine results. For example, business owners searching on “small business advice” could be drawn to your Web site’s Small Business Advisor online newsletter.

3. Improve Brand Positioning with Online Users: Everyone wants to do business with winners. The more robust your online offerings appear, the more likely you are to attract new customers. Note of caution here: You must be careful not to bury core functions behind less useful content. First Technology Credit Union (screenshot below) puts the four most important features right on their first page:

•  account access
•  customer service
•  rates
•  loan application

First Tech CU puts the four most important Web features right on its first page at www.1sttech.com .

4. Improve Customer Retention: There are three ways your Web can help keep customers locked-in to your financial institution.

•  Help users build a highly personalized online portal to their financial situation. Allow users to enter a wide variety of preferences on how they want to view their account data and how it’s delivered (e.g. email, Web, fax, snail mail, etc.).
•  Offer non-financial functions that require user involvement such as reminder services, free email or virtual safe. Once the user has gone to the trouble of setting up these services, they will be less likely to move their accounts.
•  Allow users to build a large file of account history on your server and/or in a proprietary data format, which would be time-consuming to transfer to another financial institution.

5. Increase Loan Originations: Double-digit growth in Web site traffic makes for great bar charts in PowerPoint presentations; but what attracts funding to you and your Web projects is revenue generation. Every time you add a new feature to your Web, consider the impact on the primary online revenue generator for the next few years, lending.

That’s why we like mundane, yet addictive Web features such as weather forecasts, online datebook/reminders and email services. These are Trojan horses that provide an opportunity to pitch preapproved credit to users each and every week. Advice: Avoid ad banners, especially for repeat visitors. They are obtrusive and increase download times; instead develop a series of eye-catching buttons with loan teasers such as “press here for $5,000” or “press here for an instant tax refund.”