Return on Investment from Online Banking Services: An Analysis of Financial Account Aggregation

26 Pages Posted: 24 Oct 2002

See all articles by Tereza Cristina Melo de Brito Carvalho

Tereza Cristina Melo de Brito Carvalho

Departamento de Engenharia de Computação e Sistemas Digitais

Michael Siegel

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Date Written: August 2002

Abstract

The successful adoption of Financial Account Aggregation requires a careful analysis of the business model. The business model must be defined in a way that provides value to both customers and financial institutions. This paper identifies business models for adoption of Account Aggregation technology; proposes a method for calculating the return on investment related to the adoption of this technology; and applies the proposed method to estimate this return for various business models. The results show how the return on investment is affected by parameters such as initial investment, customer acquisition and retention cost and product and service cross-selling. This analysis is applicable to financial and nonfinancial institutions considering Account Aggregation or other new online account applications.

Keywords: Online Banking, Financial Account Aggregation, Web Aggregator, Financial Accounts

Suggested Citation

Melo de Brito Carvalho, Tereza Cristina and Siegel, Michael, Return on Investment from Online Banking Services: An Analysis of Financial Account Aggregation (August 2002). Available at SSRN: https://ssrn.com/abstract=335601 or http://dx.doi.org/10.2139/ssrn.335601

Tereza Cristina Melo de Brito Carvalho

Departamento de Engenharia de Computação e Sistemas Digitais ( email )

Av. Prof. Luciano Gualberto,
Trav 3 - 158, sala C1-46
Sao Paulo, 05508 900
Brazil
(55) (11) 3091-5261 (Phone)
(55) (11) 3091-5280 (Fax)

Michael Siegel (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

E53-323
Cambridge, MA 02142
United States
617-253-2937 (Phone)
617-258-7579 (Fax)

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