The Best of the Banking Web
by Eric Holmquist In a way it feels like the Internet has come full circle, from the Holy Grail of distribution channels to a graveyard of failed dot-coms. But when you ignore all of the experimental models and hype, the Internet does remain a remarkably strong vehicle for conventional businesses in a variety of ways. It is certainly proving to
be an unprecedented vehicle for providing consumers information. Just as new car buyers have already researched the car they want before they set foot on a dealership lot, prospective customers can anonymously visit your bank. And just like a branch office, the construction of a Web site can say different things about the bank. Ultimately, a bad Web presence is worse than none at all and a great one can be one of your most valuable assets. Following are fundamental ways a bank can get
the most mileage out of its online presence. Focus on the business plan
Before discussing any mechanics of Web site management it is critical to reinforce some business concepts. In order for the bank to have a successful online presence it must have a clear understanding of the objectives of its Web site. This process starts with a solid business plan and a strategic technology plan that outline both the exact goals for the bank's online activity and the means by which these
will be accomplished. Without a clear understanding of the purpose of the bank's Web site, it is simply impossible to gauge its success. A big mistake we've seen clients make is positioning Internet Banking as a profit center unto itself. Because of the complex intertwining of the bank's products and services throughout multiple channels, to look at Internet Banking in isolation is impossible. Internet Banking, and in many ways, the Web site itself, are additional distribution channels
that support the larger profit centers of the bank. Internet Banking is designed to bring incremental value. Finally, for as long as there have been banks there has been an interest in generating more fee or non-interest income. As competition for core deposits continues from both banks and non-bank entities, the need to diversify into other forms of income has never been more significant. The Internet provides the perfect opportunity to provide fee-based services in that they can
finally be provided cost-effectively. Like everything else, it just requires some creative thought and business planning. See with customer eyes
When designing and maintaining the bank's Web site, always look at it from the perspective of both the customer and the prospect. Both will be using it and each has different information needs. For a prospect, this may be their first exposure to your bank, and first impressions are critical. Ask yourself the same questions you would
in designing a branch office: Is it attractive and appealing? Is it obvious where to get the information I need? This is one of the reasons why Yahoo! continues to be one of the most heavily used Web sites on the Internet. You can find what you need, fast. When I look at a bank's Web site, I should be able to access general information about the bank, branch locations, phone numbers and a listing of their products and services within 5-10 seconds. If I have to look any harder, something
is wrong. For an excellent example of an incredibly clear site navigation, look at www.teamaudio.com. At the same time, the site must be well designed. You wouldn't build a branch without an architect and design firm, so hire a good graphic designer to create your online branch. Like it or not, customers equate visual quality with bank quality so don't underestimate the power of a good first impression. To see an example of an extraordinary bank Web site visit www.usabancshares.com/
broadband, the Web site for UsaBancShares.com, a virtual bank. Although the jury is definitely still out on the future of Internet-only banks, they are, nevertheless, influencing customer expectation. A final thought on design: make sure that wherever you have information about a product or service, right next to it should always be a link to be able to contact the bank, either via e-mail, a form -- or even better -- an online application. Beyond Internet Banking
An unfortunate mistake I see some banks making is using the Web site as nothing more than an entry point for Internet Banking. Although online banking will always be the core application for an Internet presence, the Web site gives you a profound opportunity to provide customers with both a productive and interesting experience. The dominant model that will prevail over time is a site that people come back to again and again for more than just banking activity. The concept of a "portal" or "gateway" must be a part of the bank's overall business plan for its Web site. Remember, every time someone clicks on your Web site, they are at your bank. What are they going to find? Can you hold their attention?
Many Web sites already provide such peripheral services as stock quotes, news headlines, weather reports, financial calculators, etc. Each of these services reinforces the idea that they come to your site first to get the information they need. But with a little creativity and ingenuity, the banking industry could become a dominant player in the business of providing information. The reality is that banks must reinvent themselves as providers of more than just financial services.
"If you build it, they will come"... Wrong! There is one aspect of a Web site that bears absolutely no resemblance to a branch office; the Internet is so vast that nobody will ever just happen to be driving by. If you want people to use your Web site, you're going to have to get them there. Include your Web address on everything. Business cards, stationery, statements, printed banners, advertisements, everything that has your name on it should include your Web address. Consider exchanging
banner ads with other companies in your area, particularly customer's
Web sites. Second, give people a reason to go to your Web site, even if they're just checking out the bank. Start a loan application online; get a discount on the origination fee. Start the process of setting up a new account or moving money from another institution; get free checking. Remember, one of the strengths of the Internet is how much less it costs to provide customer service. But remember, always provide viewers with a phone number in case they need to come back to the physical world for assistance.
Next, analyze, analyze, analyze. You can buy excellent software to track what areas of your Web site people are visiting and for how long. Ask customers for feedback on what areas of the Web site they find helpful and what information they would like to see. Analyze how much your customers are using Internet Banking. For those that aren't, find out why and what would induce them to start using it. Are there features that they may not know about? Remember, cross-selling online services
has the same customer retention value as cross-selling products. And finally, keep an eye on what other companies are doing, both banks and non-banks. The technology to create rich online content is getting better and better all of the time and it wont be long before the online experience is even more robust than television. Last but not least, you absolutely must update your Web site content continually. Even though your customers are a somewhat captured audience, since they come to
the Web site for account access, if they aren't discovering new features periodically then you will never achieve that coveted portal status, and I guarantee you, someone else will. In Conclusion
Your Web site can, and should, be one of your most powerful tools for attracting and retaining customers. Its open 24 hours a day, never gets tired and can be a key tool in the bank's evolution to being a next-generation financial services provider. | 
