CKFR Checkfree Corp (MM)

-- Online Banking and Bill Payment Features Surpass Proximity of Bank Branches to Home as Factor in Selecting a Bank for Personal Accounts -- ATLANTA, Nov. 16 /PRNewswire-FirstCall/ -- CheckFree Corporation (NASDAQ:CKFR) today announced the most recent results of a survey conducted twice annually by CheckFree Analytic Research Services with The Marketing Workshop, Inc. and Harris Interactive, revealing that 56 percent of U.S. online households are paying at least one bill online, up from 52 percent in June 2004. Currently, 87 percent of users who pay their bills from a single "consolidated" website, such as a bank, brokerage, credit union or Internet portal, say they receive the service for free. For the first time, online banking and bill pay features surpassed the more traditional bank selection criteria of bank branch and ATM proximity to home. The availability of online banking and bill pay features ranked third among the top three factors in selecting a bank for personal accounts, following "availability of free checking" and "reasonable fees and service charges." The CheckFree-sponsored study was conducted by The Marketing Workshop and Harris Interactive via an Internet survey of 2,083 consumers 18 years of age and older. The survey is representative of the online population of approximately 72 million consumer households in the United States. CheckFree has conducted the Consumer Billing and Payment Trends study with similar survey items at six regular intervals since 2001. "Today's Internet user has several options when choosing to pay bills online. Consumers can pay individual bills at a 'biller direct' website, such as a utility, telecommunications or credit card company, or pay any bill from a single 'consolidated' website like their bank," says Matt Lewis, executive vice president and general manager of CheckFree's Electronic Commerce Division. "Paying bills online is in the mainstream, and for the first time online banking and bill pay has moved into the top three factors considered by consumers when choosing a bank." The study revealed that of the next group of potential subscribers, 18 percent indicated that concern about the security of their personal information is the most significant barrier to using an electronic billing and payment service, and 21 percent of potential subscribers indicated that protection against fraud and late fees would be an attractive incentive in encouraging them to adopt the service. Although they voice concerns about fraud, online consumers said they have continued to pay their bills electronically. According to the survey, the volume of bill payments made at consolidated sites, primarily banks, increased 24 percent from June 2004 to March 2005. The bank branch was cited as an important initial source of information among consumers who are already paying their bills at a consolidated service, with 25 percent naming the branch as the most influential source of information when they decided to enroll. Why do consumers choose an electronic billing and payment service? The CheckFree survey examined the reasons people choose to pay bills at a consolidated site and determined that the leading benefits are: - Convenience -- 27 percent of consumers stated the most important benefit was saving the paper, stamps and hassle of paying bills by check, while 17 percent stated that paying online was the easiest way to pay bills. - Speed -- 13 percent of consumers stated the most important benefit was that it is faster than paying by check. - Control -- 9 percent of consumers stated the most important benefit was the ability to ensure bills are paid on time as specified by the consumer. The Value of Electronic Bills Electronic bills (e-bills) contain the same information as a typical paper bill and are delivered directly to a consumer's consolidated bill pay account or a biller direct website. Of all online consumers in the study, consolidated users who receive e-bills at the same site where they pay multiple bills are the most satisfied customers: - 60 percent of consolidated users with e-bill rate themselves as very satisfied with online banking, versus 55 percent of consolidated users without e-bill and 52 percent of consumers who use online banking but do not pay bills online. - E-bill users are much more likely to recommend their consolidated service to their friends and family than consolidated users not taking advantage of e-bills. Consolidated users with e-bill made almost 80 percent more recommendations in the three months prior to the survey than consolidated users without e-bill (2.5 recommendations vs. 1.4 recommendations). E-bill users also ranked the reasons they like both receiving and paying bills online via e-bill as: - E-bill makes sure the bill is paid on time (28 percent) - Convenience, just click and pay (24 percent) - Email reminders are available (18 percent) - Ensures I never misplace a bill (6 percent) - Makes budgeting easier (6 percent) - Helps the environment by minimizing paper (6 percent) Heavy Users of Online Financial Services According to the CheckFree survey, users of a consolidated bill payment service are more likely to use multiple banking services at financial institutions than non-users. A higher percentage of consolidated users have checking, savings and money market accounts, and car, personal/student and home equity loans with these institutions. Sixty-two percent of consolidated users indicated they are less likely to switch banks due to their experience with the service. Consolidated users also tend to use other cost-effective online banking channels: - 58 percent of consolidated users also receive monthly electronic statements, versus 46 percent of customers who do not use consolidated. - 58 percent of consolidated users also use online customer service, versus 47 percent of customers who do not use consolidated. - 36 percent of consolidated users have signed up for email alerts, versus 17 percent of customers who do not use consolidated. Matt Lewis will highlight the use of consumer research, including CheckFree's Consumer Billing and Payment Trends study, during a joint presentation with Lawrence Baxter, Chief e-Commerce Officer, Wachovia Bank, at the BAI Retail Delivery Conference on November 17. The topic of the presentation is "Responding to the Voice of the Customer." About CheckFree (http://www.checkfreecorp.com/) Founded in 1981, CheckFree Corporation (NASDAQ:CKFR) provides financial electronic commerce services and products to organizations around the world. CheckFree Electronic Commerce solutions enable thousands of financial services providers and billers to offer their customers the convenience of receiving and paying their household bills online or in person through retail outlets. CheckFree Investment Services provides a broad range of investment management solutions and outsourced services to thousands of financial services organizations, which manage more than $1.2 trillion in assets. CheckFree Software develops, markets and supports software applications that are used by financial institutions to process more than two-thirds of the 12 billion Automated Clearing House transactions in the United States. The division also provides global trade processing, reconciliation, financial messaging, compliance and electronic billing and statement software to hundreds of organizations across the globe. DATASOURCE: CheckFree Corporation CONTACT: Media, Judy DeRango Wicks, +1-678-375-1595, or , or Investors, Tina Moore, +1-678-375-1278, or , both of CheckFree Corporation Web site: http://www.checkfreecorp.com/

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