More than 3.7 million consumers have applied for a credit card online according to a new report by Cyber Dialogue and Booz-Allen & Hamilton. The study, ‘CyberCitizen Finance’, found that 4.6 million consumers have already applied for at least one loan product online. The report projects 11.9 million Internet users intend to apply for some type of credit online within the next 12 months. The research, based on interviews with 1,000 Internet users and 500 non-users, found that 44% of Internet users who use a credit card at least once per month have acquired a card in order to lower their interest rate or yearly fees, versus 33% of comparable non-Internet users. ‘Cybercitizen Finance’ recommends that credit card issuers select affinity groups to whom they can market credit cards and cross-sell investment products and services. The survey was fielded in the 2nd quarter of 1998 and data is accurate within +/- 3.1% at the 95% confidence level.
While Cybercitizens represent a large market for credit (mortgages, auto loans, and credit cards), they can also be demanding customers, according to new data from Cybercitizen Finance released today by Cyber Dialogue in conjunction with Booz-Allen & Hamilton.
Cybercitizen Finance identifies 4.6 million Cybercitizens that have already applied for at least one loan product online, and 11.9 million Internet users that intend to apply for some type of credit online within the next 12 months.
Cybercitizens are less loyal to their present bank than their off-line counterparts. Only 43% of Cybercitizens that are interested in a mortgage believe that choosing their existing bank is an important consideration. “You can imagine the opportunities for non-traditional brands to compete for customers,” said Mark Esiri, CEO of Cyber Dialogue.
The Internet provides fantastic opportunities for consumers to comparison shop for financial services. “39% of Cybercitizens that have purchased a home in the past 12 months used the Internet to compare rates,” said Mark Esiri. “Financial institutions must compete on more than price — interacting with customers and building a trusted brand should be one of the key elements of every organization’s marketing strategy.”
Credit cards provide an additional arena for both traditional and non- traditional institutions to compete for Internet users. Already, more than 3.7 million cybercitizens have applied for a credit card online.
As they do with loans, Cybercitizens are often looking for the best credit card deals — 44% of Cybercitizens who use a credit card at least once per month have acquired a card in order to lower their interest rate or yearly fees, versus 33% of comparable non-cybercitizens.
Cybercitizen Finance recommends that credit card issuers select affinity groups to whom they can market credit cards and cross-sell investment products and services. “Cybercitizens with credit cards are much more likely to be interested in online stock trading and investment advice,” Esiri stated.
Cybercitizen Finance is based on in-depth interviews with 1,000 Internet users and 500 non-users. Respondents were asked about their use of online and offline financial services usage. The survey was fielded in the 2nd quarter of 1998 and data is accurate within +/- 3.1% at the 95% confidence level. Financial services companies that would like more information about Cybercitizen Finance can contact Dana Simmons at 800-965-4636.
Cyber Dialogue was founded in 1993 to help marketing professionals identify, segment and target online consumers. The company develops advanced market research and database marketing techniques combined with tracking, targeting and measurement software to send the most relevant message to the right customers at the right time. Many Fortune 500 companies and leading online brands rely on Cyber Dialogue to maximize return on their Internet investment.
Booz-Allen & Hamilton, a leading international management and technology consulting firm, is committed to helping senior management solve complex problems. In more than 75 countries, in hundreds of the world’s leading industrial, service and governmental organizations, Booz-Allen & Hamilton’s team of nearly 8,000 professionals has one goal — to help their clients achieve and sustain success.