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New Online Banking Report Published: Delivering that Secure Feeling

image OK, let’s think this through. Consumers have been concerned about the security of online banking for more than a decade. Technology tools are available to ease their anxiety. So, why aren’t these tools readily available?

The answer is that most security enhancements don’t pay their own way in terms of reduced fraud. Therefore, these “nice to have” features languish in the priority queue with little hope of getting implemented.

So do we just let customers continue to needlessly fret about the security of their financial accounts?

No, that just irritates already fed-up customers and invites more independent competitors to the table to provide the missing benefits (e.g., BillGuard, Credit Karma, Mint).

Instead, why not move to the win-win solution: Charge an optional subscription fee for extra “peace of mind,” but only to customers who want it. Or offer the value-adds free of charge for customers who help you lower costs by using self-service channels and foregoing printed statements.  

But wait. Aren’t fees dead after the BofA debacle a few months ago?

While that was a very real customer backlash, optional fees are still possible. Just keep these rules in mind:

  • Fees for extra security should NEVER be mandatory; instead, offer a “security bundle” that goes above and beyond the normal state of the art
  • Do not charge a fee for any security feature you already offer free of charge (the big problem with the ill-fated debit card monthly fee)
  • Do not charge for a security feature that is typically delivered free of charge by others in the industry
  • It’s better to bundle a group of extra security features into a relative low-priced subscription bundle

In our new 48-page report we cover:

  • 12 design elements to make your website feel more secure
  • 7 potential positive elements for your business case
  • 5 talking points for staff education before implementing a subscription fee
  • 37 potential security enhancements to bundle into an “extra security” subscription offering
  • 72 additional security features to consider
  • 5 customer segments to target with a fee-based package account
  • Overview of three promising security services:
    — Anti-virus for transactions from BillGuard
    — Self-service suspicious activity reporting from Bank of America
    — Virtual safe deposit from Northwest FCU, powered by DigitalMailer


About the report

Delivering that Secure Feeling (link)
Help consumers reduce perceived risks (for a price)

Author: Jim Bruene, Editor & Founder

Published: 4 April 2012

Length: 48 pages, 8 tables, 12,000 words

Cost: No extra charge to OBR subscribers, US$395 for others here


Sample screenshot

: Barclays (UK) offers online banking customers free anti-virus software from Kaspersky