RETURN ON INVESTMENT FROM ONLINE BANKING SERVICES: AN ANALYSIS OF FINANCIAL ACCOUNT AGGREGATION
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4384-02.pdf
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463.53 KB
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Author(s)
Melo de Brito Carvalho, Tereza
Siegel, Michael
Date Issued
January 27, 2003
Series/Report no.
MIT Sloan School of Management Working Paper;4384-02
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 application
Subjects
online banking
aggregation
account aggregation
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