Income, Tenure, Age Spurs Online Banking

Following the comfort Internet users are having with online shopping, comes findings that many are conducting other types of financial transactions online as well. According to Pew Internet & American Life Project, a record 65 percent of Internet users have bought products online, and BURST! Media reports that half of consumers feel it is safe to conduct financial transactions on the Web.

In addition to revealing that 51.2 percent are unconcerned about the safety, the online survey of 4,600 adult Internet users indicated that 33 percent manage their personal finances or bank online.

BURST! Media recognized a higher propensity for higher incomed individuals to conduct online financial transactions. Roughly one-half of respondents with annual household incomes above $75,000 manage their finances online, compared to 19 percent of those who earn less than $30,000 annually. Three-quarters of the higher incomed respondents also deemed online financial management as safe.

Who Feels Safe Conducting
Online Financial Transactions?
Male 59.2%
Female 44.1%
Broadband 37.5%
Dial-Up 29.2%
Online less than 3 years 33.9%
Online 3-7 years 51.4%
Online more than 7 years 65.6%
Source: BURST! Media

Extensive research from the Online Publishers Association (OPA) and comScore Networks, Inc. on 18 to 34 year-old Internet users revealed that this demographic group is more likely to conduct financial and banking transactions online than their older counterparts and the general Internet population.

Online Banking and Financial Activities
18 to 34 55+ Total Internet
Checked bank balances 58.6% 46.9% 52.4%
Transferred money across accounts 33.2% 27.8% 30.1%
Paid loan installments 15.9% 10.2% 13.2%
Other online banking 28.3% 19.7% 24.0%
Source: comScore Media Metrix, Audience Insite Measures, Fall 2003

Many of the 18 to 34 year-olds further revealed in a qualitative study conducted by Greystone Communications with the OPA that they were concerned about privacy than security when questioned about online financial transactions.

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