Banks To Increase Focus And Budgets On Online Banking in 2010

A new report from Aite Group reveals that executives will increase their budgets for online banking next year.

Aite Group, which interviewed with senior online channel executives from 20 of the 100 largest U.S. banks, found that half the banks it surveyed anticipate budget increases more than 15% higher than 2009 budgets.

Driving this renewed focus on online banking on 2010 is a stronger commitment from senior management, according to the report.

Aite found that banks will pursue different online strategies. Some will pinpoint online sales and marketing, while others will focus on online service or improving the customer experience.

One theme cuts across all the strategies: channel integration. Many online channel executives stressed the need to improve their bank's ability to integrate sales, service and the customer experience across channels.

"Despite the attention that the online channel has received and its promise to revolutionize traditional banking, many banks have never truly embraced it as a primary channel for customer interactions and transactions," Ron Shevlin, senior analyst with Aite Group and author of the report, said in a release.

"The tide is finally turning. The combination of two forces - banks waking up to the reality of consumer behavior, and the ascent of a younger group of managers with a more accepting view of technology - is finally helping to bring about this change."

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio