IDC Finds Electronic Bill Presentment and Payment Is Competitive Necessity for Banks Today
FRAMINGHAM, MA — OCTOBER 2, 2000 — As the volume of electronic bills climbs from 1% of all bills in 2000 to 14% in 2004, offering electronic bill presentment and payment (EBPP) services is transitioning from being a competitive differentiator for banks to being a competitive necessity. According to IDC, U.S. financial service providers should invest in EBPP to sustain customer relationships.
"Financial service companies in general are under siege from pure Internet businesses trying to encroach on their customer relationships by offering lower-cost products or by offering innovative value-added services," said Ian Rubin, director of IDC's eBusiness Advisory research. "As more banks offer online services and the adoption of online banking grows, banks will need to offer electronic bill present and payment to remain competitive. This type of offering will solidify relationships with both bill-issuing and bill-paying customers."
IDC forecasts that by 2004, 40% of U.S. banks with $3-9.9 billion in assets will offer EBPP, and among banks with more assets, this percentage rises dramatically.
IDC's new bulletin Electronic Bill Presentment and Payment: U.S. Forecast and Analysis (IDC #B22780) looks at the factors driving banks to offer EBPP. To purchase the bulletin, contact Demetra Georgakopoulos at 1-800-343-4952 extension 4496 or firstname.lastname@example.org.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.