Home  › Marketing › Strategies

Interest in Online Banking Grows

  |  December 30, 2003   |  Comments

Barring a major security breach, U.S. consumers will increasingly turn to bank Web sites.

Barring a major security breach, online banking will enjoy steady growth for the foreseeable future as remaining U.S. households without Internet access go online, a report concludes.

According to Jupiter Research (a unit of this site's corporate parent), the number of online banking households will grow at a compound annual growth rate of 14 percent to 56 million over the next five years.

The reason for the jump is simple – more households will connect to the Internet. In addition, more users are expected to tap into their employers' high-speed connections to manage their personal finances.

Once the purview of well-heeled consumers, online banking will see its strongest growth from lower and middle class households (defined in this study as those with income of $75,000 or less), which will use bank Web sites to manage credit cards and auto loans, Jupiter Research says.

Other banking activities will also increase as users become more comfortable with the technology and banks add features to their sites.

"Basic activities such as viewing account balances and transferring funds between accounts continue to be some of the most popular," the report says. "In coming years, online users will increase their usage of self-service activities such as viewing online statements and check images."

Jupiter Research analysts say online banking has more to do with consumers' choice of channel (the Internet, rather than the teller or telephone) than differences between rival banks offerings.

"Banks should stay the course, broadening and deepening their capabilities, improving usability and promoting the site as a channel option for customers," the report says.

Leading banks will see benefits in customer retention and satisfaction, reducing the possibility of defections to other institutions. It might also help banks reduce costs by cutting the overall number of visits to tellers.

The report states "only possible threat" to increasing online bank usage is a security breach and concludes, "Security concerns are already a primary inhibitor of initial consumer adoption; if realized, they will be a serious drier of online attrition."

ClickZ Live San Francisco August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.

WEBINARS

Jobs

  • Sr. Marketing Specialist, PPC
    Sr. Marketing Specialist, PPC (Charter Communications) - StamfordSr. Marketing Specialist, PPC– Digital Marketing Charter Communications...
  • Online Marketing Analyst
    Online Marketing Analyst (FULLBEAUTY Brands ) - New YorkINTRODUCTION: Are you interested in a unique career opportunity where you can represent...
  • Copy Editor
    Copy Editor (ClickZ / Search Engine Watch) - New YorkROLE OVERVIEW The role of the copy editor for ClickZ has many demands. Ultimately, the copy...