Over One in Three US Households Will E-Bank by 2007

Saturday 22 May 2004 08:59 CET | News

While consumer concerns about banking online have yet to disappear, new research from TowerGroup finds that adoption of e-banking by US households continues to rise steadily.

Highlights of TowerGroups online banking research include: - More than 80% of American households use more than one banking channel, including branch, telephone, online, ATM, etc. So labeling customers with a single-channel view (i.e., an online banking customer) can be misleading. The online banking channel is one of a mix of critical touchpoints. - The most common consumer objections to online banking include a belief that it costs more, fears about Internet security or making mistakes in transactions, or a sense that it is simply not necessary given other banking options. - Many of the top online banking providers are rapidly working to eliminate these barriers to adoption. Initiatives include: offering free access to critical online banking features like check imaging and bill payment; promising zero liability for online banking customers should some kind of security breach occur; and studying customer online behavior to try to simplify Web site navigation and usability. - In ongoing studies of online versus offline customers, the nations most successful online banking provider found that customers who use online banking show 80% lower attrition from the bank, make 30% fewer calls to the customer service line, and have higher overall account and loan balances. The institution also found that after just 2.5 years of using online banking, these customers were 21% more profitable.

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Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
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