On-line Bill Payment: Cost-benefit Ratio Still Not Clear Among Respondents

Bank Technology News, June, 2004 by David Ng

The big dilemma for banks when it comes to on-line bill payment is: Should it be free? And if so, for how long? The answers, according to a recently published report from Celent Communications, are difficult to ascertain, but given current industry trends, they fall respectively around "yes" and "not too much longer." With financial institutions of all sizes wanting a piece of the action, on-line bill payment is fast becoming a commodity in the Internet banking market.

Celent surveyed 21 banks, the majority of which ranked in the top 50 banks by assets in the U.S. It found that close to half (48 percent) already offer free on-line bill payment to all customers and that the remainder offers free bill payment to a portion of their clientele.

But a surprising number of...

Read the full article with a Free Trial at MyWire.

Premium Content Partnership | MyWire provides an in-depth online archive library of reference works.