Fiserv and Bank of the West benchmarked customer engagement in digital channels to quantify the impact and benefits of digital banking services to consumers and financial institutions.

1. The study revealed that use of digital banking drives:
Driving Customer Value Through Digital Engagement
As digital banking, including online and mobile banking and payments, becomes a top channel for nearly all customer segments, financial institutions need to be
able to quantify the value and incremental benefit. Fiserv and Bank of the West recently conducted a Digital Engagement Intensity Study to evaluate the value of
digital banking and engaged users, and what it means for financial institutions that maximize adoption and usage.
Higher Revenue Generation
Following enrollment in digital banking, monthly revenue per customer increased by 10.7 percent, compared to a 4.5 percent increase for nondigital users during the
same period. And higher engagement drove even higher value. Among Bank of the West’s highly engaged customers in the study, average monthly revenue jumped
13.1 percent after digital enrollment. Highly engaged customers have the longest tenure, make the most transactions and generate the highest revenue.
Increased Product Holdings
Among Bank of the West customers in the study, the average total product holdings increased 58.4 percent after digital enrollment, compared to negligible
growth during the same time period for nondigital customers. Highly engaged digital customers have 1.2 extra product holdings on average than nondigital users.
Lower Customer Attrition
Digital banking customers were 35 percent less likely to leave the bank, compared to nondigital users. Attrition was examined in the 15 months following
digital enrollment.
Higher Transaction Activity
The study found a 12.8 percent increase in the volume of credit transactions and a 12.9 percent increase in transaction frequency after digital enrollment,
compared to negligible increases for nondigital users. The results for debit activity were similar: a 14.6 percent increase in the volume of debit transactions, and a
9.3 percent increase in frequency of debit transactions.
The Bottom Line: Digital Banking Drives Higher Customer Value
After digital banking enrollment, increasing the degree of engagement is the next most crucial factor in driving higher value, including increased
revenue and lowered attrition.
About the Study: Conducted in partnership with Bank of the West over a 24-month period from 2013 to 2015, the Digital Engagement Intensity Study examined the digital banking behavior of a select group of Bank of the West customers.
Member FDIC. Equal Housing Lender.