May 2011 survey conducted by ICBA indicates that less than 6% of Community Banks report that a majority of their customer base uses Online Bill Pay. In fact, nearly 70% of Community Banks report that less than 20% of their customer base uses the service.
Online Bill Pay is probably the most basic service, after direct deposit, that is marketed by banks to their DDA customers. Given that the penetration into Bill Pay is so low, then is it any wonder that 80%+ of a typical Bank’s customer base is unprofitable!?
This of course, raises the question of why so many banks are so eagerly spending their limited marketing budgets on acquiring DDA accounts when experience shows that most acquired DDA customers are unable / disinterested in additional products and services offered by the bank. Instead, Banks should be focusing their marketing budgets on customers who are able and interested in robust banking relationships.