writing/media placement/other

A 1999 report by Cyber Dialogue noted that, although Cybercitizens begin banking online to save time, more than 50 percent have discontinued use because they find the service too complicated or were dissatisfied with the level of customer service. A 1999 Dataquest report found that ‘if banks are to widen the appeal of online services and introduce them to mainstream households, they must simplify the process of banking online while allaying fears of paying bills online.’

The need for easing this frustration becomes more apparent each day, with record numbers of consumers involved in complex financial transactions, such as stocks, and 401(k) retirement plans and credit cards. Consider:

• According to Equity Ownership in America, a survey commissioned by SIA and Investment Company Institute, a total of 78.7-million individuals owned equities in early 1999. This figure accounts for an estimated 49.2 million, or 48.2 percent of all American households. In 1983, only 42.4 million individuals owned equities.
• According to the PCSA (Profit Sharing/401(k) Council of America), Americans have more than $1.5 trillion invested in 401(k) plans.
• There are two credit cards for every American alive today.

With rising numbers of consumers involved in these complex financial options comes questions—and consumers want answers—online, and in-depth. A 1999 Cyber Dialogue & Booz-Allen & Hamilton study underscores the increasingly important role of online brokerage offerings as an alternative to the traditional broker network. “This could foreshadow dramatic changes in the brokerage industry," said Booz-Allen & Hamilton VP Grande Bucca "The implication is that unless full-service firms begin to realign their services to include high-quality online offerings, investors who believe they are not getting personalized service from their brokers will quickly become candidates for these hybrid, direct competitors."

How does a traditional bank, a mid-sized brokerage service or a large credit card organization compete? One bank, online newcomer Juniper Bank, has worked to make their website as consumer-responsive as possible. Commissioning fellow Delawareans Insight Interactive Group, they developed an interactive presentation available from the home page of their website.

Titled simply ‘How to Use Juniper,’ the presentation gives consumers step-by-step instructions on filling out the forms inherent in online financial transactions. At any point during the presentation, consumers are provided with various options—from navigating to a specific section to exiting the presentation once they’ve gotten the information they sought. For example, if a Juniper customer is interested in wireless access, they select ‘Wireless Access’ from the presentation navigation bar and are taken to parts of the presentation that explain Juniper’s wireless options. A consumer who wants to transfer money from a Juniper account to a non-Juniper account selects ‘Move Money’ from the navigation bar and is given a visual example of how to accomplish the task.

Financial institutions must realize that consumers need to understand how complex financial services function before they will entrust their money with a company. People are more actively managing their money, and the financial institution that does the best job of explaining their services’ benefits are more likely to get consumers’ business.

(next page>>>)