By Gina Cocking
Online banking is continuing to evolve as the players focus on developing sticky relationships. Margaret Keane, the CEO of Synchrony Financial, addressed her company’s approach in a May 28th investor conference. “I think to really drive this forward what we really want to be is a full-service bank…we want to offer checking, bill pay, and really be an excellent online, if you will, direct bank, including the thought of maybe introducing a bank card that would be predominantly for those customers who come to our retail bank. We want to make this a sticky relationship, and the way to do that is really be full-service.”
Other direct-to-consumer banks have been building products to increase customer stickiness. Ally, Nationwide, USAA and Capital One all have online checking. Discover Financial Services has launched a checking product in limited release. Amex, Sallie Mae and Synchrony do not yet have checking products in the marketplace.
Synchrony Financial has grown online deposits quickly. Online deposits are currently at $21bn and Keane has stated that Synchrony expects to hit $28bn by the end of 2015.
Great article today on SNL by Tim Zawacki, “Card issuer has lofty expectations for its growing online bank”