Compete, Inc.'s Latest Spark! Casts High-Yield Savings Account Providers in Role of Spoiler.

BOSTON -- Cross-sell Opportunities Invade Domain of Traditional Banks

Compete, Inc. today announced the findings from its latest Financial Spark! research advisory, "The Battle Between Online High-Yield Savings Account Providers and Traditional Banks Heats Up." The study's findings reveal that the high-stakes battle between online high-yield savings account (HYSA) providers and traditional banks goes well beyond savings account balances.

Compete's study found that HYSA providers could successfully expand their product offerings and cross-sell additional lending, credit-card and investment relationships to existing savings account customers. As traditional banking customers look to HYSA providers for the high-yield savings accounts, online convenience, and low complexity, traditional banks need to beware of the potential loss of millions of dollars and customers.

"We found that almost 200,000 new accounts were opened with HYSA providers ING Direct, Emigrant Direct, Capital One and HSBC Direct in December and January, said Mike Bailey, managing director of Compete's financial services practice. "Forty percent of these new accounts were opened by current deposit account customers from one of the top five traditional banks representing a very real and very significant threat. Over the next year, we anticipate that HYSA cross-sell efforts could further threaten traditional banks by capturing up to $360 million in new revenue."

Additional key findings from the study include:

--HYSA providers appear to be succeeding at building trusted relationships with their new customers - 83% of their customers plan to transfer additional money into their HYSA over the next year

--HYSA providers may be winning the customer loyalty game - one out of three customers would likely consider their HYSA provider for additional financial products

--Consumers indicated that highly competitive interest rates, low fees, 24/7 access to account management and reputation were the most important factors when choosing which bank to work with

--Traditional banks do not have to match the rates of the HYSA providers to prevent future defections; they just have to keep it close. Seventy percent of prospects would not consider opening an account with a HYSA provider until the HYSA rate was 3% higher than what they were paid by their traditional bank.

Compete's Spark! is a research series providing brands with the insight and information they need to better target consumers and enhance overall marketing effectiveness. It reports the latest research, trends and data impacting the financial services, wireless, travel and automotive industries. Download the current issue in its entirety at http://www.compete.com/research/spark.xtp

About Compete, Inc.

Compete, Inc. extends online market research to transform the way consumers and brands communicate. By combining permission marketing, predictive analytics and the industry's largest consumer behavior database, Compete helps marketers identify and reach their target consumers. Compete delivers conversant marketing solutions that increase profitability and customer loyalty and result in measurable and effective marketing programs. Compete delivers these solutions to leading brands such as Carlson Hotels Worldwide, DaimlerChrysler, Hyundai Motor America, Teva Neuroscience, Toyota Financial Services and Upromise(R), among others. Compete is headquartered in Boston, Massachusetts, with offices throughout the US. For more information, please visit http://www.compete.com.