The way to a customer's heart is through empowerment. A customer who feels in control will be more likely to stay with a company longer, because the relationship is in his court. The financial services industry knows this, and many credit card issuers are using the Web to empower their customers. This streamlines business and engenders loyalty as a result.

It's not enough to have an aesthetically pleasing site; you've got to back it up with services customers need. Research firm Gomez recently published its Q3 2003 Internet Credit Card Scorecard of 18 issuers, showing a trend among financial institutions to think of the Web as a place to strengthen customer relationships, not to be used solely as an acquisition vehicle. Online statements are now available at 72 percent of the banks' Web sites, and the convenience of same-day payment processing is another top priority. Right now only 28 percent of those surveyed offer the service, but as customers demand efficient, automatic service, more banks can be expected to respond.

"Issuers, moreover, will continue to focus on self-service functionality such as balance transfers, credit limit increases and adding an authorized cardholder to keep customers loyal, happy and working through the lower cost Internet channel," says Chris Musto, VP of Research for Gomez. Individuals can drive the relationships as they see fit and each customer is in control of the interaction.