Business Week, October 1, 2009 The payoff could be huge, especially in
terms of loyalty. Online banking customers
check their accounts twice a week on
Big Banks Take a Hint average and are less likely to leave a bank,
according to Brad Strothkamp, an analyst at
from Mint.com consultant Forrester Research (FORR).
Banks figure that the extra tools and
Intuit wants to buy the online budget resources will encourage even more
tool, and imitators are sprouting customers to stick around. "If we have
products, services, and the best experience,
Lauren Young with Aaron Ricadela that will give us more of their business or
attract new customers over time," says
What's the hottest innovation amid the Eileen Serra, president of Chase Card
recession? Web sites that let users manage Services (JPM), which launched Blueprint.
their spending and other financial decisions.
In September, Intuit (INTU) made a $170 Banks also are hoping to attract a younger
million bid for Mint.com, the pioneering force clientele. Mint's 1.5 million users tend to be
behind the latest generation of personal young and upwardly mobile. The median
finance tools. Mint customer is 30 years old. It's a critical
demographic for banks. Unlike baby
Now some big global banks are boomers, members of the younger
piggybacking on the idea in an effort to generation are just establishing their
boost loyalty and attract a younger clientele. financial lives, making them a lucrative
In the latest example, Citigroup (C) and market for new mortgages and credit cards.
Microsoft (MSFT) are teaming up to create
Bundle, potentially a standalone site to TARGETED PITCHES
compete with Mint, according to a
Bloomberg article. Says Mark Ultimately, banks are hoping to cash in on
Schwanhausser, an analyst at consultancy those sorts of cross-selling opportunities.
Javelin Strategy & Research: "Mint has By mining data across several accounts,
applied pressure on everybody to be more they can get a better sense of which of
innovative." their financial products customers might
want. "If you know what customers hold,
The new personal finance tools at banks' in- you have a much better idea" of what
house sites are similar to those at Mint. services they need, says Javelin's
Customers can aggregate their data from Schwanhausser. Banco Bilbao Vizcaya
several outside bank, brokerage, and credit- Argentaria (BBV) is among the first to pitch
card accounts—and get their complete consumers; in late October, it will start
financial picture in one place. JPMorgan selling real estate and rental services to
Chase's (JPM) Blueprint lets the bank's 20 customers in Europe through Tú Cuentas,
million credit-card holders design a plan to its personal finance portal.
pay down balances. The Dutch bank ING
(ING) is testing a service where customers A similar strategy has been critical to Mint's
can compare their spending habits to success. In its "Ways to Save" section, the
others. site makes targeted pitches to customers
based on credit scores, purchase history,
and other financial metrics. Right now, Mint
is teaming up with banks, brokerages, and
credit-card companies to develop tailored
promotions, and it plans to expand into
travel and auto insurance.
Mint makes most of its money off the
promotions. CEO Aaron Patzer says 20%
of customers that use the "Ways to Save"
section check out the deals. (Traditional
banner ads garner a click-through rate of
roughly 1%.) Users also tend to buy:
Depending on the category, customers will
take advantage of the deals 20% to 40% of
the time, estimates Patzer. "That's why
Intuit is buying Mint," says Jim Bruene of
Online Banking Report, a trade publication.
And it's why banks are following the site's
lead.