Daily Deals: The Opportunity for Banks and Credit Unions
Report Summary
Daily Deals: The Opportunity for Banks and Credit Unions
Daily deals have the potential to generate more than US$1.4 billion in revenue for banks and credit unions.
Boston, August 9, 2012 – A new report from Aite Group explores the opportunity for banks and credit unions to provide Groupon-like daily deal offers to their customers. Based on a Q2 2012 Aite Group survey of 1,115 U.S. consumers, the report considers consumer use of daily deals and merchant success with these programs.
Daily deals have proven a lucrative business—at least for daily deal providers. While the merchant payoff is mixed, deal providers like Groupon and LivingSocial commonly retain 50% of the deal price. As banks and credit unions explore ways to create new revenue streams, many view the daily deals market as a potential opportunity. Likewise, daily deal subscribers express interest in receiving deal offers from new outlets, such as from their primary financial institution. As a result, Aite Group believes that U.S. banks and credit unions could generate more than US$1.4 billion in revenue on more than 300 million transactions by 2017.
“Daily deal subscribers are looking for more relevant offers from providers, and financial institutions, which have access to their customers’ spending patterns, are poised to provide that relevance,” says Ron Shevlin, senior analyst with Aite Group and author of this report. “To capitalize on the sizeable potential revenue stream, financial institutions will have to consider their own goals, work with their small-business customers, and offer merchants a more attractive deal model."
The report references Amazon, Apple, Bloomspot, CBS Local Offers, Dealster, Eversave, Facebook, Gilt Groupe, Google, Groupon, Home Run, InBundles, LivingSocial, MyDailyThread, PayPal, Social Buy, and Social Steals.
This 16-page Impact Note contains 13 figures and three tables. Clients of Aite Group’s Retail Banking service can download the report.