Last month we explored the financial services competition you may soon face from unregulated Web-based start-ups. That was interesting, but not so pertinent for the pressing issues facing you next year. So, for those in the real world of budget cuts, personnel shortages, unrealistic revenue goals, and brutal office politics, we offer relatively more down-to-earth advice in this, our fourth annual look at the year ahead.

Looking back to our recommendations of a year ago, we still believe most will work in 1999. But you’ll need to be even more creative if
you hope to maintain or grow market share with online consumers, now numbering over 79 million in North America according to the latest Nielsen/ CommerceNet study (fielded 6/98). For 1999, we developed a Strategy
Matrix with a laundry list of online product and marketing tactics to support your bank’s strategies. We also included a list of “Quick Hits” that could be implemented by year-end to boost Web traffic.

To run the numbers for 1999, you’ll need the latest market projections. So, we’ve updated our forecasts first presented in January (OBR 1/98). Delays in bringing bill presentment to market have hurt consumer adoption, but that is being offset by the surge in activity in the real estate and mortgage fronts.

Finally, we don’t envy those of you trying to make a business case for aggressive online initiatives amongst the Y2K hysteria and e-commerce mania. Our advice: show how your Web and online banking programs support overall bank strategies, such as increasing loans or decreasing customer attrition.