Free banking, outreach programs are crux of campaign. For the
past decade, Citibank FSB has tried in various marketing, public
relations and educational campaigns to lure its customers away from
the traditional bank teller to online and ATM banking. And their
efforts are beginning to pay off.
Touting itself as the "the Citi that never sleeps" New York-based
Citibank's ongoing 10-year campaign promotes its 24-hour ATM banking,
direct deposit, phone banking, screen phone banking and PC banking
services. And in its cyber-push, it is banking on the hopes that
customers will begin viewing its online services as safe, fast and
economical. Although electronic banking programs are used by a small
portion of the bank's customers, Citibank's in-house PR force has
managed to woo existing customers with computers to at least try
online banking.
Customer sign-up for PC banking has increased a dramatic 240
percent to 125,000 customers this year. That number is still less than
1 percent of its 45 million customers, but Citibank officials hope to
double that number by next year with its ongoing regional educational
programs.
One of the problems Citibank faces is its customers' need for
one-on-one interactions with a teller. But bank officials feel the
ease and convenience of PC banking will outweigh those concerns."We
feel the real force that will drive computer banking is not Citibank
but technology," said Mark Rodgers, vice-president of global consumer
public affairs. "As more people get comfortable with using computers,
they will want to add banking to their services."
Citibank customers can pay bills, get stock quotes and review
past activity for up to 90 days from their computer.
Promoted With Ads, Direct Mail
Last summer, the bank began promoting "free" electronic banking
through a series of print ads. The ads were supported by a direct
mail campaign targeting different types of Citibank customers, as well
as a series of television ads showing the ease of PC banking.
The move caused a stir in the banking world, where the
elimination of fees is more the exception than the rule. The policy
generated several stories in such trades as Retail Banker
International as well as business journals from some of Citibank's
largest markets--New York, South Florida and San Francisco.
"One of the ways we have gotten such a great response to PC
banking is that there are no fees involved," said Rodgers. "We were
the first to come out with such a policy and it really generated
interest from consumers and the media."
After the fee elimination, the annual cost of a Citibank account
for a low balance customer drops 40 percent if the customer uses PC
bill payment instead of checks.
But just about everyone knows the average consumer is not PC
savvy, especially when dealing with banking. That is where Citibank's
educational and outreach program stepped in.
Education Is Key
As the financial incentives only affect a small group of
consumers who avidly use computer-based services, Citibank has
expanded its education and outreach efforts to teach hesitant computer
users about electronic access to their accounts.
Although regional branches have different methods, all of the
educational programs have the same thread running through them:
educate the consumer about computers.
These efforts include multi-lingual operators and a unit of
full-time educators who give seminars to adlts and children on using
banking technology.
"We believe that access to technology-based education is a
critical reform and we must prepare our citizens not just for joining
a work force with strong-computer based skills but also for banking
electronically," said Pamela Flaherty, senior vice-president for
Citibank Global Community Relations.
Flaherty said to educate future customers about online banking
Citibank has placed emphasis on the technological programs it funds
for K-12 education.
Customers In Line Go Online
In South Florida, educational programs are held during bank
hours. Bank officials ask customers standing in line to try online
banking at the kiosks they provide.
Citibank's adult efforts have also been particularly effective in
the New York area where its regional offices have sponsored seminars
introducing ways to manage money electronically. The presentations
take the audience step by step through ATM transactions; getting cash,
making a deposit, transferring money between accounts and paying
bills.
Since the program's inception in 1995, more than 400 seminars
have been conducted at Citibank branches and neighborhood community
centers. (Citibank, 212/559-1719)