BAI/TCG Study Offers Revenue Growth Opportunities for Financial Services

Apr 02, 2001, 01:00 ET from Bank Administration Institute/The Cambridge Group, Inc.

    CHICAGO, April 2 /PRNewswire/ -- Competing on Supply, Winning on Demand:
 Recapturing Share of Consumer Financial Services, a new study by Bank
 Administration Institute (BAI) and The Cambridge Group, Inc. suggests new
 revenue opportunities for financial services companies by segmenting customers
 differently and rethinking value propositions to align products and services.
     The study, a probe of consumer preferences and buying habits, pinpoints
 factors reshaping consumer demand for financial services and steps to increase
 relevance and differentiation with consumers.  It provides a new predictive
 model, which can be checked against traditional demographics, and offers
 revenue and cross-selling opportunities across 12 financial products.  It
 outlines consumer adoption drivers of online financial services and consumer
 reactions to account aggregation, one-stop shopping, financial advice, online
 offerings, and cross-selling.
     Key findings include:
 
     * 59% of respondents are interested in online account aggregation.
       Aggregation solutions using screen scraping drew interest from 23%,
       while OFX (Open Financial Exchange) solutions were of interest to 34%.
 
     * 76% of consumers surveyed are interested in financial education,
       advice, and planning.  38% are willing to pay for it on a one-time
       basis; 34% are willing to pay for it on an ongoing basis.
 
     * 90% of respondents are interested in the idea of one-stop shopping,
       with banks viewed as the most capable providers.
 
     * 24% of participants conducted online financial transactions in
       the last 12 months and over the next 12 months, a further 18%
       intend to do so.
 
     * 63% of participants have life insurance. Insurance companies are
       perceived as the most capable providers (65%) then large banks (14%);
       personal financial advisors (12%); credit unions (12%); full-service
       brokerage firms (11%); and community banks (10%).
 
     The study also identifies best practices from companies such as AOL,
 Cisco, Dell, Schwab, and Starbucks that have employed demand strategy
 principals and as a result enjoy 1.8 times their industry's average income
 growth, 1.5 times its average sales growth, and 2.3 times its average return
 on equity.
     Complete results are available only on a subscription basis.  For more
 information, visit www.bai.org/demandstrategy .
     The study generated qualitative data from 18 consumer discussion groups
 and quantitative data from over 3,200 mail responses.
 
     About BAI
     Bank Administration Institute (BAI) is the leading professional
 organization devoted exclusively to improving the performance of financial
 services companies through strategic research and information, education and
 training.
 
     About The Cambridge Group
     The Cambridge Group, Inc. is a demand strategy consulting firm that helps
 clients identify and act on demand.  TCG has been in business for over 25
 years and was founded on a simple principle -- "one ought to look at the
 business through the eyes of the customer and not the customer through the
 eyes of the business."  TCG believes in the primacy of demand, as a driver of
 strategy.
 
 

SOURCE Bank Administration Institute/The Cambridge Group, Inc.
    CHICAGO, April 2 /PRNewswire/ -- Competing on Supply, Winning on Demand:
 Recapturing Share of Consumer Financial Services, a new study by Bank
 Administration Institute (BAI) and The Cambridge Group, Inc. suggests new
 revenue opportunities for financial services companies by segmenting customers
 differently and rethinking value propositions to align products and services.
     The study, a probe of consumer preferences and buying habits, pinpoints
 factors reshaping consumer demand for financial services and steps to increase
 relevance and differentiation with consumers.  It provides a new predictive
 model, which can be checked against traditional demographics, and offers
 revenue and cross-selling opportunities across 12 financial products.  It
 outlines consumer adoption drivers of online financial services and consumer
 reactions to account aggregation, one-stop shopping, financial advice, online
 offerings, and cross-selling.
     Key findings include:
 
     * 59% of respondents are interested in online account aggregation.
       Aggregation solutions using screen scraping drew interest from 23%,
       while OFX (Open Financial Exchange) solutions were of interest to 34%.
 
     * 76% of consumers surveyed are interested in financial education,
       advice, and planning.  38% are willing to pay for it on a one-time
       basis; 34% are willing to pay for it on an ongoing basis.
 
     * 90% of respondents are interested in the idea of one-stop shopping,
       with banks viewed as the most capable providers.
 
     * 24% of participants conducted online financial transactions in
       the last 12 months and over the next 12 months, a further 18%
       intend to do so.
 
     * 63% of participants have life insurance. Insurance companies are
       perceived as the most capable providers (65%) then large banks (14%);
       personal financial advisors (12%); credit unions (12%); full-service
       brokerage firms (11%); and community banks (10%).
 
     The study also identifies best practices from companies such as AOL,
 Cisco, Dell, Schwab, and Starbucks that have employed demand strategy
 principals and as a result enjoy 1.8 times their industry's average income
 growth, 1.5 times its average sales growth, and 2.3 times its average return
 on equity.
     Complete results are available only on a subscription basis.  For more
 information, visit www.bai.org/demandstrategy .
     The study generated qualitative data from 18 consumer discussion groups
 and quantitative data from over 3,200 mail responses.
 
     About BAI
     Bank Administration Institute (BAI) is the leading professional
 organization devoted exclusively to improving the performance of financial
 services companies through strategic research and information, education and
 training.
 
     About The Cambridge Group
     The Cambridge Group, Inc. is a demand strategy consulting firm that helps
 clients identify and act on demand.  TCG has been in business for over 25
 years and was founded on a simple principle -- "one ought to look at the
 business through the eyes of the customer and not the customer through the
 eyes of the business."  TCG believes in the primacy of demand, as a driver of
 strategy.
 
 SOURCE  Bank Administration Institute/The Cambridge Group, Inc.