Mar 10 2003: A recent report from Gartner indicates that 17 percent of Americans used online banking services by the end of 2002.

According to a new forecast from the company, consumer use of online banking will grow at a Compound Annual Growth Rate (CAGR) of 14 percent up to year-end 2007. By that time, some 30 percent of Americans (67 million individuals) will be using online banking services.

Gartner predicts that penetration will be higher among key demographic segments. Among consumers with annual household incomes between USD50,000 and USD75,000, more than one in five use online banking.

In households with annual incomes above USD75,000, online banking usage is 29 percent.

By year-end 2007, more than 50 percent of Internet users in these key demographic segments will bank online, according to Gartner.

The report also indicates that trust in online banking services is associated with prolonged use of the Net. Gartner�s research reveals that fewer than one in 10 consumers who started using the Internet since 2001 use online banking.

By comparison, more than one-third of those with five or more years of Internet use conduct banking transactions via the Web.