In the aftermath of the Canada Post strike of May 2011, Shaw Communications Inc. reported that new registrations for its online bill presentment – in June alone – reached 70,000; 10 times its expected monthly signups (source: Globe and Mail). The article reports that other large organizations, such as Rogers and Enmax, also reported sizeable increases and amidst the consumer backlash towards the strike there were many voices in the media recommending consumers switch to online bill payments. The postal strike can be seen as a catalyst for financial institutions to overcome one of the more significant barriers towards the adoption of electronic payments in Canada: changing customer habits and behaviour. As customers become more trusting and familiar with receiving and paying bills online, financial institutions are poised to give customers yet another reason to be the primary institution for managing their money.
epost is Canada Post's free electronic bill presentment service that provides a seamless way for your customers to receive and manage their bills online. Since its introduction in 2004 as a feature in MemberDirect® Online Services or MemberDirect Integrated Services, epost has grown to over seven million registered users, 2 million active users, and includes 80 percent of the top 10 mailers in Canada and 60 per cent of the top 40 mailers.
Jens Hertha, Product Manager, Online Banking at Central 1 believes epost makes a lot of sense for time-starved customers accustomed to online banking. "Financial institutions should view epost as a way to enrich the customer experience by conveniently tying bill presentment and bill payments together", says Hertha.
Hertha strongly advocates that clients work to position themselves as their member's primary banking institution. Combined with other services like mobile banking, account consolidation or small business, financial institutions can create a "stickiness" factor that keeps customers active online and coming back.
"It's an important consideration as we continue to innovate to meet the needs of a world dominated by electronic payments", Hertha stresses. "We can expect increased competition from many players in the finance and payments sectors, as well as a growing expectation from customers that bill presentment is a standard offer from financial institutions".
In addition to competition and shifting customer expectations, there are a few other reasons why epost really is low hanging fruit for financial institutions looking to leverage their online channel.
Reason #1 – Convenience. Financial institutions invest considerably in creating a compelling online retail presence. With so much competition from other financial institutions, retailers and online / desktop personal financial management tools, every additional reason for customers to go to your website to manage their finances adds value to your most significant online asset. By offering online bill presentment alongside the already highly-utilized online bill payment services, epost increases convenience for customers and gives them another reason to consider your website first for managing their finances.
And speaking of convenience, epost allows users to access mail received for up to seven years, which is very helpful for keeping records, particularly those related to tax filings.
Reason #2 – Environmental. Increasingly, financial institutions are playing a larger role in helping customers achieve their social and ethical goals. Online bill presentment through epost allows customers to promote sustainable practices by choosing to receive electronic copies of their bills.
Reason #3 – Privacy. Online bill presentment also offers additional security for the customer as they can only receive the bills by logging in through a secure online banking website using MemberDirect's authentication.
Reason #4 – No banking system changes. epost does not require any changes to the banking system and may be a good option for clients who feel hamstrung by banking system conversions.
Central 1 Technology and Payment Services