For 2003, we know the purse strings will be tight. Even so, aggressive bets could have a big payoff. Look at 2003 as a setup for 2004. Demonstrate that Web innovations have a quantifiable, positive contribution. Next year at this time you’ll be in a much better position to push through significant investments for 2004.

For example, if you believe as we do that email will be the key method for communicating account information, make sure to at least test email alerts in 2003. For example, take 1,000 credit-qualified customers and monitor their deposit balances. When balances are unusually low, hit them with an email for a preapproved loan. You could run this test manually just to get a feel for response rates. You could use the results to help justify the business case for a bank-wide program of balance-triggered, preapproved credit.

If you are looking to make the biggest bang for your buck (who isn’t?), look to online lending and small- and micro-business initiatives. According to Celent’s groundbreaking study across 1.5 million Digital Insight users, online lending generates four times the combined value of banking/bill pay. Business services were even more valuable resulting in returns of nearly six times that of banking/bill pay (see below).

Source: Celent, 10/01

*NPV over 5 years at a 50,000-customer bank; includes direct revenues, cost savings, and retention. For a better understanding, read Celent’s Customer Retention and Cost Savings Drive Online Banking ROI, published Oct. 17, 2001.