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Home > Banking Services > Online Banking > Users of Online Services With More Benefits!
Users of Online Services With More Benefits!
According to recent information, the number of online banking users has increased dramatically in the last years. Last December, some banks from the United States decided that it will be a great idea to give a little gift in cash or any type of incentive to their online customers.
Usually, online banking users who sign up for online bill payment see how their bills are debited from their accounts. According to studies conducted by Gartner Group, 18.8 million Americans use online payment options. It is predicted that by 2008, 56 million people will be paying bills online.
With the purpose of recognizing the long-term benefits of customers online, the banks offered rewards for the use of this service. For example, Citibank offered free iPods and cash back to the users of online banking who paid at least two bills each month during 12 consecutive months. At the same time, E*Trade Financial Corp. offered cash incentives to encourage customers to open new electronic accounts. Customers who opened an account with $1,000 balance were to receive $100 cash back. Moreover, U.S. Bank runs a promotion offering an award of $10,000 that will be given randomly to the lucky user of Internet bill payments.
Banks give incentives with the sole purpose of reducing costs by increasing the amount of users of online banking and to augment customer loyalty. The costs of online banking transactions are lower than the rest of transactions: the average transaction at a full branch costs a bank $4.07, phone transactions $0.54 and ATM transactions $0.27. The cost of a website transaction is $0.01.
Studies have also shown that customers who pay bills online stay in their banks longer and carry higher balances. Therefore, most financial institutions are running a fiercely battle to obtain their client’s attention and stability within the banks.
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