• Electronic Payment Systems: An Overview
• Electronic Payments Systems
  • ATM and Debit Systems
  
  
• Direct Deposit and Automatic Bill Payment
  • Direct Deposit
  • Automatic Bill Payment
  
  
• Stored-Value Cards
• Internet Banking and Electronic Bill Payment
  • The Biller Site
  • The Bank Site
  
  
• Internet Banking and Electronic Bill Payment: Industry
  • Background
  
  
• Online Banking Establishes Itself within the Mainstream
  
  • Table 1-1: Percent of Internet Users 15 and Older Who Bank Online
  
  
• Bringing It All Together
  
  • Integrated Features
  • Multi-Channel Strategy
  • Competitive Advantage to Multi-Channeling
  • Electronic Bill Payment and Presentation
  
  
• The Electronic Bill Payment and Presentation Participants
  
  • Billers
  • Consumer Service Providers (CSPs)
  • Brick-to-Click and Internet Banks
    • Brick-to-Click Banks
    • Virtual Banks
    
    
  • Billing Service Providers (BSPs)
  • The Consumer
  
  
• Electronic Bill Payment and Presentation: Payment and Presentation Methods
  
  • Personal Finance Software Model
  • The Consolidator Model
  • Biller-Direct
  • Electronic Bill Presentation: e-Bills
  
  
• Online Banking Advantages and Disadvantages
  
  • Advantages of Online Banking To The Consumer
  • Disadvantages of Online Banking To The Consumer
  • Benefits to Banks
    • Customer Loyalty and Retention; Cost Savings
    • Profit and Retention Considerations

• The Outsourcing Question
  
  • In-House vs. Outsource
  • Wachovia’s Recent Switch to Outsourcing
  
  
• Melding Online Banking and Branch Banking as Part of Overall Relationship Building Strategy
  
  • Why Expand Branches? Consumers Still Use Branch Banking!
  • Case Study: Bank of America
  • Case Study: National City
  • Case Study: Key Bank
  • Key Terms
    
  • Account Aggregation
  • Automated Clearing House (ACH)
  • Automatic Bill Payment
  • Online Bill Payment
  • Direct Deposit
  • e-Bills
  • Electronic Benefits Transfer (EBT)
  • Electronic Funds Transfer (EFT)
  • Encryption
  • 128-bit Encryption
  • FedWire
  • Global Certificate
  • Inter-Institution (Inter-Bank) Transfer
  • Online Banking
  • Payee
  • Personal Identification Number (PIN)
  • Point-of-Sale (POS) Network
  • Secure Socket Layer (SSL)
  • Smart Card

Chapter 2: Market Drivers

• Electronic Payments Growth
  
  • Electronic Payments Exceed Check Payments for the First Time in 2003
  • 2004 Federal Reserve Payments Study: Key Findings
    • Check Payments
    • Electronic Payments9
    • Why the Shift Away from Checks?
    • Q1 2004 Check Volume Continues to Slide
    • Check 21
    
    
  • Direct Deposit
  • Table 2-1: 2002 Number of People Using Direct Deposit
  • Consumer Cost Savings of Direct Deposit
  • Consumer Cost Savings per Direct Deposit Sample Calculation:
  • Electronic Banking Households Rise
  • Table 2-2: Percentage of U.S. Households That Use Various
    • Electronic Banking Technologies
    
    
  • Online Banking and Internet Usage Correlation
    
  • Limited Internet Access Translates into Limited Online Banking
  • Broadband on a Tear
    
  • 19.9% of 2003 U.S. Households Have Broadband
  • Table 2-3: U.S. Broadband vs. Narrowband Connections (At-Home)
  • 2004 FCC Data
  • Online Bankers More Likely to Use Broadband Than Dial-up Users
  • Table 2-4: Percent of Internet Users 15 and Over that Use the Internet for Online Banking 2003
  • Table 2-5: Percent of Internet Users 15 and Older Who Bank Online
  • Broadband - Youth; Narrowband - Seniors
  • Table 2-6: Broadband vs. Narrowband Connections by Age Group
  • Population Density and Median Income Are Growth Factors
  • Broadband Features: Cobrowsing
  • Customer Sign-Up and Retention
    
    • Driving the Convenience Factor
    • Encouraging Sign-Up
    • Inter-Transfer Capabilities Help Open Accounts
    • Providing Extra Functionality
    • Usage Incentives
    • If It Is Free, They Will Come
      • Cash Back
      • Rewards
      • Rewards and Free Bill Pay: A One-Two Punch
      • Banks: What’s to Lose?
      
      
    • Customer Retention Tied to Online Banking
    • Customer Retention Tied to Bill Pay
    • Online Bill Pay Adoption
    • Fee Waiver and Channel Integration Differentiate Banks
    • Banks Must Be Doing Something Right: Online Bill Pay Increases Online Satisfaction
    • Cross Selling Opportunities
      
      • Table 2-7: Cross Selling Opportunities for Multi-Category Financial Service Sellers
      • Live Chat as Cross Selling Tool
      • Table 2-8: Wells Fargo Internet Channel Sales Increase
      • Table 2-9: Wells Fargo Internet Channel Sales Increase: Q2 2003 to Q2 2004
      • Online Banking Drives Profits; Free Bill Pay a Key Driver
        
      • e-Bills a Cost Saver and Growth Driver

Chapter 3: Banking Profiles


• Bank of America Corporation
  
  • Fleet Acquisition
  • Business Segments
    • Consumer Banking
    
    
  • The Online Banking and Bill Pay Leader
  • Q3 2004 Online Banking Figures
  • Selected Comparative Statistics
  • Table 3-1: Active On-line Banking Subscribers*
  • Table 3-2: Bill Payment Volume* (dollars in millions)
  • Table 3-3: Online Banking DDA Household Penetration*
  • 2003 Online Banking Figures
  • Reasons for Growth
  
  
• Bank of New York Company, Inc.
  
• JP Morgan Chase
  
• Merger with Bank One
• Business Segments
• Retail Financial Services (RFS) Segment
• Consumer Banking Outlook
• Online Banking
• Consumer & Small Business Banking
• Table 3-4: Consumer & Small Business Banking


• BB&T Corporation
  
• Online Banking
• Citibank
  
• Online Banking
• Comerica Inc
  
• Golden West Financial Corporation
  
• KeyCorp
  
  • Consumer Banking Business Segment
  • Online Banking
  • Table 3-5: KeyCorp 2002-2003 Online Banking Figures
  • Table 3-6: KeyCorp Q3 2004-Q3 2003 Online Banking Figures
  
  
• National City
  
  • Business Segments
  • Consumer and Small Business Financial Services (CSB)
  • Online Banking
  • Recent Online Banking Growth
  
  
• PNC Financial Services Group, Inc.
  
• Regional Community Banking Segment
• United National Bancorp Acquisition
• Table 3-7: Regional Community Banking Facts and Figures: 2003 and 2002
• 2003 Regional Community Banking Highlights
• SunTrust Banks Inc
  
• Online Banking
• U.S. Bancorp
  
• Consumer Banking Segment
• Online Banking
• Wachovia Corporation
  
• SouthTrust Merger
• General Bank
• Online Banking
• Facts and Figures
• 2003 General Bank Facts and Figures
• Washington Mutual Inc
  
• Business Segments
• The Consumer Group
• Retail Banking and Financial Services
• Mortgage Banking
• Online Banking
• Retail and Online Banking Statistics
• Table 3-8: Washington Mutual Total Retail Checking Accounts
• Table 3-9: Washington Mutual Home Equity Loan and Line of Credit Balance Growth
• Table 3-10: Washington Mutual Free Checking Cross-Sell Char
• Table 3-11: Washington Mutual Retail Banking Store Growth
• Wells Fargo & Co
  
• Business Segments
  
  • Online Banking
  • Table 3-12: Wells Fargo Online Banking Customers
  • Table 3-13: Wells Fargo Internet Channel Sales Increase
  • Table 3-14: Wells Fargo Internet Channel Sales Increase: Q2 2003 to Q2 2004

Chapter 4: Market and Product Trends

• Biller-Direct Still Prevails; Bank Aggregation Gathers Steam
• Instant Credit and Billing Detail Gap Closing
  • Instant Crediting To The Account Not There Yet
  • But The Gap Is Closing
  • Bank Aggregation Solutions Provides Only A Summary E-Bill View
  
  
• Real-Time Payments And Enhanced Billing Detail Around The Corner
• Insufficient Funds Fees
• Banks Win on Security Issue
• Channel Integration
  
• Multi-Channel Strategy
• Competitive Advantage to Multi-Channeling
• Challenges to Integrate Internet into Other Customer Channels
• Integrated Channel Offerings: An Example
• Streamlining Enrollment Process: PIN and Social Security Number Only
• Top 15 U.S. Bank Holding Companies by Total Assets
  
• Table 4-1: Top 15 U.S. Bank Holding Companies by Total Assets
• Product Features Trends at a Glance
• Product Features
  
• Free Bill Pay
• Not Always “Free”
• Use with Microsoft and Quicken Normally More Expensive
• Quicken and Microsoft Money Limit Banking Features
• Table 4-2: Wachovia Online Banking Access Comparison
• e-Bills
• Wireless Banking
  • Alerts
  
  
• Alerts Sweeping the Industry
• Bank One’s Account Alert Offerings: A Synopsis
  • Checking Account Alerts
  • Savings Account Alerts
  • Credit Card Account Alerts
  • Line of Credit Account Alerts
  • Loan Account Alerts
  
  
• Bank of America’s Alerts
  • Cell Phone Alerts
  • Text Chat
  
  
• Online Banking Kiosks
• Zero Liability Policies
• Bill Pay Guarantees
• Inter-Institutional Transfers
• Demo Videos0
• Increase in Self-Service Options0
• Listening to Customer and Customer Service to Craft the Product
• Other Enhancements
  • Last Payment Date and Amount Information
  • Payment by Due Date
  • Disclosure of Paper vs. Electronic Settlement of Payments

Chapter 5: Bank Website Profiles

• Table 5-1: Top Banks: Product Features Summary
• Bank of America
  
• Table 5-2: Bank of America Product Features Summary
• Transfer Information
  • Inter-bank Transfers
  • Canceling Transfers and Payments
  • Transfer Availability
  
  
• Quicken and Microsoft Money
• Table 5-3: Quicken Account Transaction History
• Bank of New York
  
• Table 5-4: Bank of New York Product Features Summary
  
• Online Banking Fees
• Check Imaging
• Canceling Bill Payments
• Bank One
  
• Table 5-5: Bank One Product Features Summary
• Unique Features and Important Omissions
• Online Banking Fees
• Alerts
  • Checking Account Alerts
  • Savings Account Alerts
  • Credit Card Account Alerts
  • Line of Credit Account Alerts
  • Loan Account Alerts
  
  
• BB&T
  
• Table 5-6: BB&T Product Features Summary
• Important Omissions
• Online Banking Fees
• Table 5-7: BB&T Online Banking Fees
• Transfer Information
• Table 5-8: BB&T Transfer Information
  • Transferred Funds Availability
  
  
• Table 5-9: BB&T Transferred Funds
• Citibank
  
• Table 5-10: Citibank Product Features Summary
• Unique Features
  • Variable Linking
  • SafeWeb Online Fraud Guarantee
  
  
• Online Banking Fees
• Table 5-11: Interbank Transfers
• Alerts
• Fifth Third Bank
  
• Table 5-12: Fifth Third Product Features Summary
• Important Omissions
• Online Banking Fees
• Golden West Financial
  
• Table 5-13: Golden West Financial Product Features Summary
• Key Bank
  
• Table 5-14: Key Bank Product Features Summary
• Online Banking Fees
• Account Aggregation0
• Table 5-15: Quicken and Microsoft Money
• National City
  
• Table 5-16: National City Product Features Summary
• Online Banking Fees
• Quicken & Money
• Alerts
• PNC
  
• Table 5-17: PNC Product Features Summary
• Unique Features
  • Liability and guarantee policy
  • Funds Security
  • On-time Payments
  • Privacy4
  
  
• Online Banking Fees
• Alerts
• SunTrust Bank
  
• Table 5-18: SunTrust Product Features Summary
• Online Banking Fees
• Account Aggregation
• Alerts
• Quicken and Microsoft Money
• U.S. Bancorp
  
• Table 5-19: U.S. Bank Product Features Summary
• Online Banking Fees
• Quicken and Microsoft Money
• Liability Policy
• Alerts
• Wachovia
  
• Table 5-20: Wachovia Product Features Summary
• Online Banking Fees
• Our Commitment to You
• Table 5-21: Online Banking Access Comparison
• Account Aggregation
• Alerts
• Washington Mutual
  
• Table 5-22: Washington Mutual Product Features Summary
• Online Banking Fees
• Unique Offerings
  • ID Theft Products
  
  
• Wells Fargo
  
• Table 5-23: Wells Fargo Product Features Summary
• Unique Features
• Online Banking Fees
• Quicken and Microsoft Money
• Account Aggregation

Chapter 6: Consumer Demographics

• Consumer Demographics - Stats at a Glance
  
• Consumer Profile Shift as Online Banking Reaches the Mainstream?
• The American Banker/Gallup Consumer Survey Demographics Say It’s Not So
• Satisfaction with Online Banking Falls
• Consumer Perceptions and the Use of E-Banking
  
• Table 6-1: Percentage of U.S. Households That Use Various Electronic Banking Technologies, By Perception Index Level, 1999 and 2003
• Table 6-2: Distribution of households: Perception Index and Level
• Availability and Future Use of E-Banking
• Table 6-3: User and Non-User Expectations About Future Use of Selected Electronic Banking Technologies, 1999 to 2003, in percent
• Table 6-4: Demographics for Users and Non-Users of Electronic Banking Technologies
• Consumer Online Banking Usage and Frequency of Use
  
• Note on Simmons Market Research Bureau Data
  • Data Presented for Online Banking
  
  
• Almost a Quarter of Adults Use Home Computer for Internet Banking
• Table 6-5: U.S. Adults Using Online Banking Spring 2004
• Table 6-6: Demographic Characteristics Favoring Online Banking Usage*
• Age
  
• Online Banking: A Younger Person’s Game?
• Table 6-7: Online Bankers by Age Composition
• Table 6-8: Percentage of Consumers Who Have Used Online Banking Within Last 30 days: By Age
• Gender
  
• Figure 6-1:Online Banking Composition by Gender
• Figure 6-2: Percentage of Consumers Who Have Used Online Banking, by Gender
• Ethnicity
  
• Table 6-9: Number of Individuals by Ethnicity
• Table 6-10: Percentage of Consumers Who Have Used Online Banking, by Ethnicity
• Education
  
• Table 6-11: Percentage of Consumers Who Have Used Online Banking, by Education
• Income
  
• Figure 6-3: Consumers Using Online Banking by Income*
• Table 6-12: Percentage of Consumers Who Have Used Online Banking, by Income
• Marital Status
  
• Figure 6-4: Percentage of Online Banking Users, by Marital Status
• Region
  
• Figure 6-6: Consumers Using Online Banking, by Region
• Generation X and Y
  
• Table 6-13: Young Adults' Online Financial Activities, By Gender
• Table 6-14: Financial Products Researched Online By Young Adults, By Gender

Chapter 7: Security and Fraud

• Security and Fraud Concerns
  
• Security and Fraud Concerns Primary Growth Inhibitor
• Table 7-1: Why U.S. Households Do Not Use Online Banking Services, 2002
• Encryption Protocols
  
• Aggregation a Fear
• The Electronic Fund Transfer Act & Regulation E
  
• The Truth-in-Lending Act & Internet Credit Card Purchases
  
• Identity Theft Insurance
  • Example: PNC
  • Example: Citibank
  
  
• Putting an End to Account-Hijacking Identity Theft
• Ways of Perpetrating Account Hijacking
• Phishing
• Hacking
• Retrieving Hard-Copy Documents or Looking Over Someone’s Shoulder
• Using Insiders
• Inserting Malicious Software