Online Banking Report: Internet Strategies for Financial Institutions. RESOURCES

A look at current online banking usage and projections through 2012
OVERVIEW
Mainstream users continue to flock to Web banking
If not for the foul economic climate and over inflated expectations of the late �90s, the online channel would be the toast of the industry. By most measures, online banking is a runaway success. Compounded annual growth since OBR�s founding, at year-end 1994, has been 80%. Worldwide, more than 100 million households now bank online, up 20-fold. In the U.S., household adoption passed 25% a few months ago, up 100-fold since 1994. Looking ahead, we project another doubling of usage in the U.S. to 50 million households by decade�s end. Worldwide, the total is expected to triple to 300 million or more households.

Not only is online banking penetration growing, but the level of usage is also increasing. Power Users, households that access bank accounts AND pay bills, have grown 5-fold in the past two years. However, less than half of the power users use their bank s pay-anyone bill-pay service, electing instead to go directly to the biller s site to settle the bill there.

If done right, banks are finding that online banking can increase customer satisfaction, boost retention, and improve profits. This 414-page statistical report outlines trends and usage of online banking, payments, credit cards, insurance, investments, and other financial services.

Published: December 2002