Online banking-based e-billing linked to timely bill payments, reduced costs – research

The study shows that customers who receive electronic bills (e-bills) via a financial institution or the Con Edison website are more likely to make on-time payments, and utilize online self-service rather than customer service calls.

Conducted by AccuData on behalf of Fiserv, the study analyzed two million customer records with a focus on three customer segments: those receiving paper bills, those receiving e-bills via online banking and those receiving e-bills at the Con Edison website. The research compared the three groups customer service channel use and payment timing.

The study found that e-bill use had correlations with frequent on-time payments. Thus, customers receiving e-bills via online banking were found to be 22 percent more likely to make on-time payments and customers receiving e-bills at ConEd.com were found to be 6 percent more likely to make on-time payments, when compared to paper bill recipients. Banking sites offer due-date reminders which may help customers pay their bills on time.

The research also found that on average, customers receiving e-bills via online banking or the Con Edison website conducted 1.57 and 1.37 registered self-service visits per month at ConEd.com, respectively. In contrast, paper bill users performed such activities 0.71 times per month. Bank-delivered e-bills provide links driving customers to ConEd.com for usage activity and billing history information.

In addition to payment and customer service habits, the study identified demographic and psychographic characteristics of each of the major billing and payment usage segments. This includes electronic, paper and in-person channels. The findings validate the need to offer a broad range of billing and payment methods, as different customer segments gravitated toward different payment types.

This is the first primary study of a utility that links electronic billing to critical business functions, such as more current payments receivables and higher levels of online customer service.