Issuers expect to focus their future Internet activities on customer service more than new account acquisition. Here are some highlights of the executives responses: -- 85% of the institutions surveyed reported some card-related activities on the Internet, usually customer servicing activities like account information, bill payment, customer care or other self-service functions. -- One in four consider Web activities as an opportunity to gain competitive advantage in the marketplace. -- About half of the issuers use the Internet to attract new accounts, and two-thirds of these use some form of Internet advertising. -- Yet three out of four respondents report that the Internet generated less than 10% of new accounts in the past year. -- 60% of issuers surveyed dont predict greater reliance on the Internet as an acquisition channel because of customer quality issues, and 40% cite low approval rates from online sources. Issuers cite multiple reasons why they dont move more card-related services to the Web: corporate budget constraints, security concerns, cardholder adoption and changing technology. Many issuers cited security risks as a key challenge to their efforts to enhance existing online features. The survey includes responses from 33 consumer-card issuers -- monoline banks, retail banks, credit unions and retailers -- representing more than 150 million cardholder accounts. One-third of respondents represented portfolios of more than $1 billion in receivables, while the remainder represented portfolios of less than $1 billion. Responses were collected in July and August.
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