| By Jim Bruene on February 3, 1999 12:41 PM | Comments (0) |
|
Business Model |
E-Billing Product Strategies |
Pricing |
Metrics |
Potential |
| loan generation | · all payment and billing services that increase the number of credit-qualified visitors to your Web site |
free |
incremental loan dollars per $ of bills paid | high – little downside to investments in increasing loan cross sales |
| customer retention (competitive parity) | · Web-based, pay-anyone bill pay with integrated
email communications · electronic bill presentment |
less than $5 per month or less than $0.33 per payment | incremental customer HHs per bill pay account; improvements in customer satisfaction scores | medium – maintains the status quo |
| increase market share | · e-billing info clearinghouse where any Web
user can search by merchant to see what billing options they
support* · facilitate bill presentment with “name” merchant(s) |
free |
percent of site visitors becoming active bill pay users | varies – a calculated risk like any growth strategy |
| develop a cutting edge image | · bill presentment · billing calendar and reminder services · branded “pay” buttons on biller Web sites |
free |
increase in unaided awareness of online banking program | medium – almost impossible to quantify |
| increase net fee income** in the small business market | · small business accounts payable services
· small business e-billing services (including card processing) · ecommerce services, such as Web site hosting |
$50 to $1,000+ per month depending on depth of service offering | fees paid per bill pay account | medium to high – could be an excellent entrée to gain share in the small biz market |
| increase net fee income** in the consumer market | · guaranteed monetary transactions such as
Web-based money orders, traveler’s checks (see
PortraitCheque.com, and interbank ACH transfers · escrow and settlement services for online transactions between private parties and/or tiny merchants (e.g., eBay transactions) |
transaction fee of $1 to $10 per item | fees paid per bill pay account | low for most, high for a few – only a few players will achieve the scale to compete for consumer transaction services |
Source: Online Banking Report, 2/99
*If you developed a nationwide biller database, it could potentially be leveraged into a cobranding relationship with an Internet portal.
**Direct fee revenue is higher than direct expense.
Most Recent Posts:
- Citibank Helps Users Better Understand Prior Payment Activity When Paying Credit Card Bill Online - May 16, 2012
Leave a comment