Survey: 48% of Bank Customers Want Web 2.0 Gadgets
WorkLight, a startup that offers enterprise 2.0 products, recently did a survey among Facebook users to find out their willingness to use Web 2.0 tools for secure banking. The survey was conducted among 1000 Facebook users between the ages of 18-34. The fact that the survey was conducted among Facebook users gives it a bias towards tech-savvy people. However there are some surprising findings.
The results:
- 27% of respondents said they are willing to switch banks in order to use secure Web 2.0 gadgets to manage personal finances; 73% would not.
- Nearly half of respondents (48%) said they would use secure gadgets for personal banking if their bank offered it
- Men are more open to use these new tools than women (55% to 45% respectively)
- The older age group - 25-34 - are more open to using Banking 2.0 tools
The fact that the 25-35 age group is more willing to try banking 2.0 than 18-24 years old was a little surprising - although neither group is "old" when you go outside of Facebook. To drill down more into the age group stats: 53% of 25-34 year olds said they would take advantage of a web 2.0 banking service, compared to 45% for the 18-24 year olds. Moreover, 33% of 25-34 year olds would consider switching to another bank that offered Web 2.0 gadgets for online banking -- it was just 21% among 18-24 year olds.
The key stat comparison I think is that nearly half would use web 2.0 tools if offered by their current bank, but only 27% would consider switching to another bank because of it. 27% (over 1 in 4) is relatively high, but again I think we need to bear in mind that these are Facebook users. So this tells me that web 2.0 is currently viewed as a 'nice to have' feature by banking consumers, but it is by no means an 'essential' product worth switching banks over. Still, banks would do well to to take notice of what their users want, especially the tech savvy ones.
Security is going to be a big part of any potential 'banking 2.0' product. Web 2.0 products to date haven't been known for their security - it's difficult to focus on that when social networking and sharing is such a major component of web 2.0 products. WorkLight says that it aims to adhere to a bank's "strictest security requirements". And let's be honest, Worklight is going to need 100% validation of security from the banks in order to be taken seriously by consumers. If I'm going to use a web 2.0 product for banking, then I want a guarantee from my bank that it's secure. A guarantee from Worklight alone won't cut it.
Having said that, Worklight's banking solutions look promising and it's another great example of web 2.0 going mainstream in 'the real world' (you know, the land where Twitter and FreindFeed are merely cute toys that geeks play with). Here is an example of a secure Banking gadget, in this case of a credit card company:
WorkLight is a pretty well funded company based in Israel. It recently took in a series B round of funding totaling $12 million led by Pitango Venture Capital, Israel's largest VC. It previously had taken $5.1m in funding when it was founded in 2006. It's main focus is consumerizing web 2.0 apps for the enterprise - such as iGoogle, MS Live, Netvibes, and Facebook. With the banking widgets, it appears to be headed into products that bring web 2.0 to the mainstream consumer world; which we think is an area with a lot of promise.
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"The fact that the 25-35 age group is more willing to try banking 2.0 than 18-24 years old was a little surprising - although neither group is "old" when you go outside of Facebook."
-- I can say that around 24+ my finances have really taken centre stage. Perhaps this is similar for many others in the 25-35 age group. When you are younger I think that while important its not THAT important just yet..
Posted by: Michael Tighe | June 4, 2008 2:59 PM
Good point Michael.
Thanks, I really liked that article. I chose my present bank BMO based on my preference of their online banking.
I just wish that there was more widgets and services offered by my bank, but there is very little of it in Canada (to my knowledge).
Posted by: Michael Tighe | June 4, 2008 3:19 PM
This article is comically sad. Take the now more less standard definition of "Web 2.0" which is mentioned in the article - collaboration and social networking - and ask yourself, what does this have to do with online banking?
ABSOLUTELY NOTHING.
Nice advertisement for WorkLight btw.
Posted by: Nathan | June 4, 2008 5:20 PM
WTF.. DID U FIRST ASK.. WTF is WEB 2.0?? who hell knows,,
Posted by: COP | June 4, 2008 5:29 PM
Nathan, I never said web 2.0 was *just* social networking and collaboration. What I wrote was: "...social networking and sharing is such a ***major component*** of web 2.0 products." (relevant part highlighted)
With that in mind, the web 2.0 part here is the gadget / widget aspect -- which people can then put on their start pages, social networks, blogs etc. I can certainly see uses for that, provided the security is in place and trustworthy.
I think people switch services for reasons beyond what technology can provide. The problem with any service - whether they are tech savvy or not, is the overall end-to-end service that most often than not is so inconsistent. The trick for banks is to get the different channels sharing and using the same data (one hand doesnt seem to talk to the other) so your experience as a customer is consistent and straightforward, whether you used the IVR or shopfront or weekend bank. So, just becuase a bank offers widgets, I wouldn't switch; but I wish my bank used online tools and widgets, then I would never leave it for another one.
Posted by: Lulu | June 4, 2008 6:39 PM
Cool, the current phishing attack vectors were getting old anyway!
Posted by: David Harrison | June 4, 2008 10:07 PM
Richard, if we're just going to define Web 2.0 as anything vaguely new, then sure.
I still dont get it though. I'm not going to put my bank balance on my blog.
Posted by: Nathan | June 5, 2008 12:08 AM
thanks :)
Posted by: pr yuksek blog | June 5, 2008 12:19 AM
This was a nice PR peice for WorkLight. Wiggets and gadgets will have a place in Web 2.0 and 3.0 but the engagement will be about accessability and consumer control as they what their information and content where, when, and how they want it. Security plays a very big part in selling into banks and their consumers and it will need to be industry standard. For WorkLight to succeed in selling in these products, they have to package based uponthe consumer demand/need and a comfort level around security.
Posted by: Rick Lavoie | June 5, 2008 7:53 AM
These results are meaningless. Yawn.
Did the people who were being surveyed even know what WorkLight meant by "Web 2.0 features"?
Posted by: Chris Broadfoot | June 6, 2008 12:14 AM