Goal

State of the Art*

Best Bets to Differentiate your Bank**

Other Possible Tactics**

· allow payment from multiple accounts within your bank

· FAQs

· searchable biller database with links to online billers and email updates (1/99, p 12)

· check clearing confirmations (1/99)

· service/performance guarantees (see Checkfree)

· financial datebook (1/99)

· reminder service (1/99)

· bill payment usage incentives/scorekeeping (1/99)

· online money orders with integrated email, i.e., bill pay combined with goods fund guarantee (1/99)

· allow payments from accounts at other banks (see Wingspan, 6/99)

· virtual transaction accounts (6/99 )

· regional bill payment clearinghouses (1/99 )

· ebill and message service (1/99 )

· bill pay calculators and budgeting service (1/99 )

· bill overload protection (1/99 )

· biller customer service inquiry form (1/99 )

· links to biller data entry (1/99 )

· smart payment services (1/99 )

· bill payment budgeting services (1/99 )

· transaction feedback loops (1/99 )

· security control panel (1/99 )

· account access

· online account opening form

· virtual transaction accounts (6/99)

· online “balance transfer” and/or “account closure” form that facilitates the process of closing accounts at other financial institutions and transferring balances

· form to transfer deposits from other financial institutions

· bounty for accounts closed with the online form

· statement aggregation via VerticalOne or others

· initial deposit via ACH (electronic funds transfer)

· Web-based ACH inbound and outbound

· “build your own account” function where users choose product bundles with discounts and/or rate premiums

· savings calculators

· print-and-mail deposit form

· form to transfer deposits from other financial institutions

· Web-based form for ACH inbound and outbound (no charge)

· email alerts when rates hit a certain level

· rate comparisons to national, local and competitor’s

· online form for setting up and changing automatic savings plans

· ACH outbound Web-based form

· deposit auctions, on your site and/or auction sites, where competitive bidding determines the rate paid on a set amount of dollars (3/99 )

· email encouragement to fund systematic savings plans

· CDs indexed to broad equity market averages and/or niche markets

· pay-anyone bill payment

· per account fees for businesses

· interbank funds transfer

· online cash advance

· fee-based online money orders/ACH engine

· “good funds” payment guarantee/escrow

· credit reports and credit bureau monitoring services (see QSpace, 11/98 )

· scan-and-pay bill presentment (6/99 )

· virtual safe deposit

· co-branded tax prep areas (2/99 )

· user-entered bill due date notification service (i.e. calendar service)

· bank-run loan marketplace with competitive lenders (1/99 )

· searching/running reports from an extensive archive of user transaction data

· premium notification services, e.g., $0.35 each time the user is called (via automation) when their balance falls below the preset threshold

· online foreign currency exchange

· budget analyzer with email notifications

· smart payment services

· slotting fees charged to a small number of complementary financial providers showcased on your Web; for example, tax advisors, brokerages, mutual funds, sub-prime credit providers, commercial lease agents, factors, and so on

· credit card registration

· prepaid long-distance services

· membership programs

· escrow and settlement services

· auction hosting

· online travelers cheques (2/99 )

· international funds transfer (cross border)

· automatic back-up and secure digital storage (4/99 )

· document scanning and storage (4/99 )

· money orders initiated on Web site and picked up at the branch

· link to preferred insurance provider(s)

· provide online insurance quotes

· bill life insurance (3/99 )

· Web-based home-inventory listing with automatic insurance coverage for any listed item (stored on bank server)

State of the Art

Best Bets to Differentiate your Bank

Other Possible Tactics

· basic investment advice such as general asset allocation recommendations

· stock quotes

· portfolio tracking

· mutual funds indexed to broad market averages (or links to appropriate providers)

· news feeds for stocks tracked in user portfolios

· email alerts when stocks reach trigger points

· margin lending integrated with other loan products offered to investors

· back-to-basics investment advice and products

· risk averse investment advice and products

· systematic (e.g. automatic) investment services with email reminders and confirmations

· indexed mutual funds for niche sectors

· CDs indexed to broad equity market averages and/or niche markets

· real-time licensed ebroker “help” via Web chat and/or email

· trade tracking with emailed feedback

· real-time approval for first trade

· localized or niche investment opportunities

· free trades (loss leader)

· build your own mutual fund

· pay deposit interest in shares of stock

· pay credit card rebates in shares of stocks

· stock premiums for purchasing new products

· online banking usage sweepstakes with stock as prizes

· no-fee mutual funds (loss leader)

· give away shares of your company

· print-and-mail/fax options

· loan payment and refi calculators (5/98 , 2/97 )

· instant loan approval

· links to credit report providers

· multi-product applications (get home equity line with mortgage app)

· balance transfer form (5/98 , 10/97 )

· email loan status reports (4/98 )

· email rate updates/alerts (10/97 , 8/97 , 3/97 , 2/97 )

· participate in loan marketplaces (11/98 , 11/98 , 6/98, 6/98, 5/98 , 5/98 12/98 )

· auction marketplace (11/98, 6/98)

· automotive info

· banner advertising (11/98)

· bill payment from loans/cards (5/98, 4/98, 10/97, 3/97,

· blank check lending (6/98; 8/98)

· branding, cyber- ( 9/96)

· build your own loan (4/97,)

· build a loan marketplace

· bundled home equity line ( 3/97)

· business loan finder (6/98)

· chat online with loan officer (10/97)

· credit card checks (9/96)

· credit card registration (9/96)

· credit reports (11/98, 6/98, 4/98, 3/98, 2/98, 8/97)

· custom Web views (2/97, 3/97, 4/9)

· discounts on: application fee (5/98); home appraisal; loan points (2/97)

· document access/storage (3/97)

· e-loan officers

· email homeowner reminders (3/98, 2/98)

· email lead follow-ups (2/97)

· email to a friend (8/97)

· email payment reminders (10/97)

· guided Web links (2/98)

· home-for-sale listings (7/96)

· home value reports (5/98, 9/97)

· homeowners info

· improving user confidence (4/98, 10/97)

· indirect lending, Web-based

· kiosks in real estate offices (3/97)

· leasing, online applications (9/98)

· lead generation (5/98, 10/97, 10/97)

· loan analysis (10/97)

· loan finder services (6/98)

· loan monitoring services (10/97)

· loan officer bios (9/97, 6/97)

· loan principal pay-down form (10/97)

· loan servicing, virtual (6/98)

· lowest-rate guarantee (4/96)

· micro-sites (11/98, 5/98)

· one-click lending (11/98)

· personal finance hub/portal (6/98)

· preauthorized debit form (4/98)

· prequalification services (10/97, 1/97)

· rate-lock button (5/98, 10/97)

· Realtor services (5/98, 2/97)

· refinance services (2/97, 4/98, 3/97)

· reference info/library (3/97)

· relocation/movers services (10/97, 5/98)

· search engine exposure (1/98, 10/97)

· service guarantees (10/97 )

· skip-pay application (10/97, 2/97)

· sweepstakes (4/98)

· “switch to yourcard” buttons on ecommerce sites

· Web-branded loan sites (11/98, 10/97)

· Web site sponsorships (10/97)

· worksheets/profiling (10/97,, 2/97,)

· VIP virtual lounge (10/97,)

· virtual personal banker/loan officer/concierge (5/98, 4/97)

State of the Art

Best Bets to Differentiate your Bank

Other Possible Tactics

· participate in loan marketplaces

· team with copy centers, private mail centers, and similar retailers to place ATM and Net banking kiosks in their stores to act as your “physical” presence

· team with FedEx to make every FedEx box a night depository for your business clients and high-value consumer customers

· deposit-taking agreements with brick-and-mortar banks

· meta-tags that identify your financial institution when searching on “banking” and “yourcity” on Web search engines

· relocation/new mover services, resources, and special offers

· participate in loan marketplaces

· community calendar

· real estate listings, links, and resources

· meta-tags containing keywords describing areas of expertise

· specialized white/yellow pages

· single purpose microsites aimed at target segment only (e.g., lawyersbank.com)

· cobranding arrangements

· referral form with the option to personalize the message sent to the referred party

· referral bonuses split 50/50 with those making the referral and the new customer

· sweepstakes entries for each referral made (consider instant win type, see FUSA, 6/99)

· free/discounted stock in your company for account holders (can be tied to activity levels)

· align yourself with a platform vendor ranking high on Gomez’s rankings www.gomezadvisors.com

· align yourself with various professional services organization such as CPAs, Realtors, etc.

· separate Web site or distinct business area (e.g., biz.yourbank.com or yourbankbiz.com)

· include “small business” in your meta-tags and page descriptions

· online line increase application

· loan officer home pages and email addresses

· identify business specialists in a yellow pages type area (e.g. restaurant loans, contact commercial loan officer Kim Jones, former manager of Atlas Foods)

· Web-based ACH origination

· Web-based payroll services

· Web-based credit card merchant services (e.g., virtual terminal)

· fax-based services such as daily summary of bank transactions

· integrated bill payment/email that automatically emails the recipient when payment is authorized

· ebilling services (including card processing) (9/98)

· service and performance guarantees (9/98)

· variable financial and access control options (9/98)

· dedicated personal ebankers

· enhanced bill payment (pay anyone) with integrated email messaging to recipient (9/98)

· payroll and payroll tax module (9/98)

· accounts receivable services: billing, card processing, payment handling, late payment notice generation, credit evaluations of new clients, and so on (9/98)

· suite of virtual services including virtual checkbook, virtual office, virtual bookkeeper, and virtual CFO (9/98)

· HotOffice integration (9/98)

· QuickBooks compatibility (9/98)

· Web-based leasing (see Atel, 9/98)

· turnkey commerce site hosting/processing (see MultiActive, 10/98)

· Web-based shipping quotes/processing (see iShip.com, 10/98)

· small business microsites/areas (see CompuBank’s eCommCenter, 10/98; Mellon Bank, 10/98)

· free Web sites for small business clients

· deposit pick-up services

· reminder services

· virtual research services

· virtual shipping center

· business management Web content

· fax center (e.g., jfax.com)

· small business forums

· email notification when employees access corporate bank accounts

· expense account reporting/approval

· expense account cash advance/reimbursement

· deposit-taking agreements with brick and mortar branch networks (see OneCore, 6/99)

· safe shopping guarantee (reiterate existing Reg. Z protection)

· usage-based contests such as FirstUSA’s Java “scratch” tickets (#50/51)

· enhanced safe shopping guarantees

· ewallet

· frequent users programs (e.g., ClickRewards)

State of the Art

Best Bets to Differentiate your Bank

Other Possible Tactics

· application form for a credit line increase with real-time approval

· balance transfer form to automatically move balances from competitors

· “upgrade to home equity secured” form

· downloadable in ASCII or QIF formats

· display data columns sortable by check number, amount, date posted, etc.

· gallery of standard reports available online

· email notifications sent confirming transactions

· triggered email sent when balance level or activity limits are hit

· brochureware

· lobby displays

· direct mail

· online sign-up form

· high quality online demo

· checking account discounts, loan rate breaks for using online banking

· usage incentives such as transaction oriented sweepstakes

· messaging integrated with bill pay

· home inventory

· non-financial statement aggregation

· sweepstakes/usage incentives

· membership programs

· email templates

· scan-and-pay bill presentment

· preapproved bundled credit card or credit line

· tax prep via Web TurboTax

· volunteer clearinghouse

· surplus equipment clearinghouse

· education/homework center

· links to non-bank financing sources

· well written FAQ (proofed by a professional copy editor) with imbedded email forms for additional questions (see Yahoo!)

· everyday essentials such as weather forecasts (3/99)

· sweeps with automatic entries each day a user logs on (or each online banking transaction) (see FIRST USA, 3/99)

· provide a Net banking playground where new users can play with their accounts without "test" transactions (3/99)

· send email thank-yous and encouragement as users hit various milestones (1st bill pay, 10th funds transfer, etc.)

· employees incentives for online user activation/usage (3/99)

· exit polls of new users (3/99)

· incentives for first-visit transactions (3/99)

· free samples of money distributed by users via email, i.e., viral marketing (3/99)

· statement envelope teasers (3/99)

· allow customers moving out of your market area to maintain their accounts by hooking them to a local checking account using ACH transfers initiated online

· personalized Web views and information delivery preferences

· periodic SHORT emails with specials, advice, etc. (don’t forget opt out options)

· encourage trial "live" payment to yourself and friends

· divide bill payment into two distinct categories: fully electronic and electronic-to-paper; or 1-day and 5-day

· integrated email from user to payee

· good funds guarantee from bank to payee

· courtesy phone calls and/or emails to new users to see if they have questions

· send-a-buck viral marketing program

· mall business oriented service with richer email integration and downloadable into accounting packages (2/99)

· branded pay buttons on biller sites (1/99)

· billing calendar and reminders services (6/98)

· guaranteed on-time payments

· guaranteed “no bounce” payments backed by a “bill payment” (overdraft) line of credit, possibly with American Express-like “no preset spending limits”

· recurring payment wizard that walks users through payment setup with a series of questions

· datebook/calendar integrated with bill payment reminders

· at least one bill presentment merchant with same day “real time” processing

· usage incentives/sweeps

· link to FDIC database to verify your identity

· email address for users to ask security questions

· password rules/guidelines

· email to multiple user email addresses notifying them when messages are posted in their secure mailboxes on the banking site

· email confirmations of all transactions

· join the BBB online and post its logo on your Web

· join other third party security and privacy programs such as TrustE, Int’l Computer Security Assoc. www.icsa.net

· secure mailboxes on your Web site where users can ask questions and receive confidential replies

· optional digital certificate-based access controls

· multi-level passwords

· discounts for users accepting more stringent fraud prevention controls (4/99)

· $25 million deposit protection/insurance

· SafeWeb fraud protection from Travelers

· 100% safe ecomm guarantee

State of the Art

Best Bets to Differentiate your Bank

Other Possible Tactics

· email address for customer inquiries

· respond to email within 24 hours

· service levels posted for email response time

· autoresponder for all email questions confirming receipt

· eBankers assigned to high-value online clients

· chat function for users to ask questions of ebankers online

· ebanker home pages

· proactive outbound service via email

· email service level guarantees that treats email questions the same as a call center questions, e.g. turn around measure in minutes, not hours or days

· autoresponder programmed with variable message that tells users approximately how long it will be at that moment before their email is answered (e.g. current wait time is seven minutes, etc.)

· online suggestion box with feedback

· special VIP email address for high-value households that connects directly to a bank VP for guaranteed same day resolution (or similar guarantee)

· suite of financial planning calculators

· integrate budgeting/financial planning with data

· provide numerous customer feedback areas (Web, email, fax, voice mail)

· periodic user meeting/focus groups to get qualitative feedback

· advisory board of users (see WingspanBank, OBR 6/99)

· Y2k education/reassurances

· personal finance calculators

· everyday essentials such as local weather forecast

· community white/yellow pages

· community calendars/databases

· reminder services

· tax prep services

· guided links

· economic baseline statistics

· education/homework center

· idea/tip of the day

· online sweepstakes

· shopping guides

· sweepstakes

· quick survey with real-time results

· currency converter with ability to order the most common currency(ies) for branch pick-up

· single purpose microsites (e.g., Strong’s www.EducationIRA.com

· co-branded Web sites

· multi-domain names (e.g., yourcitybank.com)

· associate program paying for leads sent to your bank

· school schedules and closing reports

· personal calendar/reminder functions

· movie schedules/reviews

· free email forwarding

· flight tracker

· travel club

· frequent flyer mileage statements

· community services

· expert moderated forums

· auction hosting

· post press releases and news articles (or links) on your Web site

· include business unit contacts with email addresses (not just PR folks)

· showcase areas where you are first, even if it means splitting hairs, e.g., the first bank to offer Web-based payroll services in the state of Washington

· develop case studies where consumers and/or businesses are using your online services to save time and/or money

· focus attention on innovative public-service online programs, such as community calendar, charity auctions, credit report/privacy services, etc.

· instant loan approval, especially home equity

· display your stock quote with links to pertinent SEC areas for further info

· create a division called <yourbank.com>, trademark the name, and publicly consider an IPO and clearly demonstrate how the above unit will (or is) making money

· email list with your closing stock price sent on a daily/weekly/monthly basis along with any press releases issued during the period

· email-this-company-to-a-friend function so prospective users can alert friends or a broker about investing in your company

· online chat room to “speak” with someone in investor relations

· a large database of preformatted responses that can be quickly customized to respond to email queries

· rationalize branch size/locations in areas of high computer usage

· operate “computer branches” staffed with a bare-bones staff and lots of computers; consider operating with partners to share costs and boost traffic (e.g., think Starbucks)