It seems that every day we hear different news about the economy in terms of a turn towards recovery. The stock market is continually fluctuating based on news in the job market, housing prices, and the nation’s financial institutions. While the hope is that there is nowhere to go but up, many of our banking centers are still struggling within the current climate. As a result, 36 banks have already failed in 2009 before we have even reached the month of June.

Due to the current economy, both banks and consumers have focused even more on the quality of their relationships. Many bank struggles have been due to relationships with consumers of questionable credit rating. As consumers have been unable to make good on loans, banks have struggled with the consequences. Not only are consumers with better credit appealing on a stability level, but they also are more likely to carry higher bank balances than the average consumer. In a recent survey of savings shoppers, Compete discovered that about 2/3 of those with excellent credit have an average savings balance of greater than $10,000 compared to 1/3 for those with a lower rating (Figure 1).

On the other end of the spectrum, consumers are also looking for stability within the financial institutions they choose to do business with. In light of the many bank failures, it is not surprising that consumers in market for savings products are increasingly seeking out institutions that will still be operating well into the future. The Compete survey found that 41% of savings shoppers are now looking specifically at the financial security of the bank as part of their search criteria. Even more interesting is the fact that those with an excellent credit score are more likely to be concerned about a bank’s stability when compared to those with a less than stellar rating (46% to 35%) (Figure 2). Consumers with excellent credit built their rating with smart financial decisions and want to have relationships with firms that are built on solid ground.

The question for banking institutions is where to find these high quality consumers. The technology to be able to look at someone and immediately know their credit rating does not yet exist, right? In fact, this is something we are able to accomplish with Compete’s clickstream data. When looking at individuals that have opened a deposits account online by credit rating, we can determine sites that those with a higher rating are more likely to visit when compared to the average internet user. Below are a few examples of sites that deposits applicants with excellent credit are more apt to hit. For example, deposits applicants with a high credit rating are 97% more likely to visit latimes.com when compared to the average internet user.

Detailed information like this is very valuable when trying to target high quality consumers with messaging that fits the mold for what they seek in a financial institution. Consumers are looking for financially secure banks because of our economic environment. It is up to these institutions to put themselves at the forefront of these individuals’ web experience so the matchmaking can begin.

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