Looking for the 'Killer Application' in Home Banking? Internet Payments are in the Driver's Seat
February 19, 1999
PALO ALTO, Calif.--(BUSINESS WIRE) via NewsEdge Corporation -- According to a new study by Killen and Associates, providing the consumer with ways to easily make payments for repetitive bills such as utilities, credit cards, and insurance and real estate-based premiums is the key to robust growth in home banking.
By YE2000, the banks' revenue streams attributable to Internet-based billing, payment, and related financial services will reach nearly $50 billion, growing to more than $155 billion by 2005.
"Everyone is looking for the key driver that will provide the explosive growth in home banking," stated Michael Killen, president of the research firm. "Internet Payments is the answer: It is a win-win-win situation for the consumer, the bank, and the biller. The consumer saves time; the bank enters the age of electronic commerce, reduces costs, and retains customers; the biller receives a cleaner, more reliable payment stream, lowers costs, and also enters the age of the Internet."
"In the next two years retail banks must offer Internet payments if they want to have a chance to provide services to the growing multitude of Internet customers," says Jules Street, VP, financial services.
The report states that retail customers will switch banks, if necessary, to obtain the payment services they demand.
The study forecasts the Internet payment market on a worldwide basis. It reports on how Barclays Bank (BCB), Chase Credit Card (CMB), NatWest (UK), First Union (FTU), Wells Fargo (WFC), and other banks are pursuing Internet billing and payment opportunities.
Killen & Associates' study, Consumer and Wholesale Banks: Electronic Bill Presentment and Payment Opportunities and Threats, is the second in a set of three focused on the EBPP marketplace. This volume provides insights that wholesale and retail banks can use to leverage this major change in the business model.
It also alerts financial institutions, IT providers, and billers about the strategies of major players including American Express (AXP), Banc One (ONE), GTE (GTE), First Union, and Wells Fargo. Detailed worldwide and regional forecasts of the marketplace for EBPP service revenues are included as well as insights contained in personal interviews with industry executives.
For additional information, visit Killen & Associates' Web site, killen.com . Contact: Jules Street, jules@killen.com , or Karl Duffy, karl@killen.com , tel 650/617-6130, fax 650/617-6140.
Killen & Associates is a leading market research and consulting firm whose studies, seminars, and television programming enable clients in the banking/financial services, telecommunications, and information technology industries to identify business opportunities created by technology advances, public policy changes, and market forces.
<<Business Wire, 02-18-99, 08:06 Eastern>>
CONTACT: Killen & Associates, Palo Alto | Jules Street or Karl Duffy, 650/617-6130 | jules@killen.com | karl@killen.com
[Copyright 1999, Business Wire]
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