Nexity
Essay title: Nexity
PROBLEM STATEMENT
Nexity’s major problem is their competitor’s size in the banking industry. Nexity is relatively small compared to their major competitors. Virtual banks, such as Nexity has only captured 2 percent of the total U.S. banking market share thus far. Nexity’s lack of market share and brand awareness within the banking industry is a major concern of theirs. Nexity’s problem is how they are going remain successful in the banking industry, increasing their market share, and grow within the banking industry. Nexity’s competitors have the capability of offering the same products, with better customer service.
While the convenience and great rates were attracting to some online consumers, Internet-only banks, such as Nexity had suffered pitfalls stunting their growth. The lack of person-to-person contact forced consumers to resolve problems over the phone or via e-mail, which could be frustrating for some.
Concern over deposit and cash still limited the convenience of Nexity. For customers without direct deposit capabilities, mailing checks to Nexity was the only means of depositing money. Waiting for deposits to be posted could be an inconvenience for customers. Nexity also has no ATM network and no branches, requiring customers to use other banks’ ATMs, or by using cash-back services with debit cards. Nexity reimburses consumers $2, for four monthly trips to foreign ATMs. Customers have to cover the cost of using foreign ATMs exceeding four uses per month.
Nexity also faces an increase in rivalries. By examining Nexity within the banking industry rather than the online banking industry, we see the intensity of competition in the banking industry is increasing. The growth of the internet in the last six years, has forced many brick-and-mortar banks to consider and develop online banking. Most online accounts are held at the online divisions of brick-and-mortar banks. Of the top 10 banks in each of the 35 largest markets, more than half offer online access, according to data service Bankrate.com (The Truth…). Now customers can get the best of both worlds. They are