BoA and Homestore.com have launched their joint venture Home Solutions website.
Bank of America and Homestore.com are to launch Home Solutions, a website targeting US households that plan to relocate. The alliance will provide real estate listings, advice, and mortgage information to Bank of America’s 3.2 million online clients and Homestore.com’s 27 million clients.
The website intends to attract consumers through a comprehensive listing of properties, tips on moving, maintenance, mortgage calculators, and a pre-qualification screening option. It’s the first phase of a multi-year $10.5 million marketing and web services agreement designed to enhance the wallet-share of Bank of America’s online clients and Homestore.com’s users.
Bank of America is already a leader in the US banking sector with respect to online penetration. The Homestore.com agreement further expands Bank of America’s reach to a large and lucrative segment of the market that are prime candidates for Bank of America mortgages and other online banking products. US census data shows that annually almost 20% of households relocate – and nearly 65% of those households research their moves on the Internet.
The move looks to be a targeted and innovative approach by an online banking operation to enhance cross-selling opportunities for online banking products. The synergies created by the Home Solutions website will promote the sale of mortgages online, reducing mortgage origination costs. The site should also reduce online client acquisition costs, which can range from $100 to $200.
This venture is likely to stimulate a wave of innovative online partnerships that are grounded with tangible, near-term returns for online banking initiatives. Many new, targeted online initiatives that focus on very specific consumer demographics will emerge over the next one to two years. These online partnerships, unlike many in the past, will be based on sound fundamental business logic and will yield positive near-term returns on invested capital.
